WTTC: Taxing tourism is not a quick fix

LISBON 11 December 2012: Portugal is going through a difficult economic period, but government at all levels must avoid taxing tourists as an easy way to raise funds.

This was the message delivered by World Travel and Tourism Council president, David Scowsill, to the annual conference of Associação Portuguesa das Agências de Viagem e Turismo (APAVT) in Coimbra last week.

“(Taxation) will be counterproductive in the long-term by harming the competitiveness of the travel and industry. The dramatic increases in VAT imposed on golf, and food and beverage, added to the proposed introduction of a culture tax, plus the possible Algarve tourist tax, are all measures that will damage tourism,” he said.

David Scowsill

Portugal is more dependent on Tourism than most other countries. The industry contributed €26.2 billion to Portugal’s GDP in 2011 – 15.2% of the GDP. It also supported 866,500 direct, indirect and induced jobs, which equates to 17.8% of the country’s employment. Spending within Portugal by international tourists for both business and leisure trips equalled €10.3 billion in 2011, or 17.3% of total exports.

David Scowsill continued: “I am confident that common sense will prevail. The President of the Portuguese Republic endorsed the Global Leaders for Tourism campaign by accepting a joint letter presented by United Nations World Tourism Organisation and WTTC, asking him to acknowledge the contribution made by the industry in facing today’s global challenges.

“President Anibal Cavaco Silva’s acceptance of our open letter means that over 40 world government leaders have in the last 12 months voiced their support for the Travel & Tourism sector.”

World Travel & Tourism Council is a global authority on the economic and social contribution of travel and tourism. It promotes sustainable growth for the industry, working with governments and international institutions to create jobs, to drive exports and to generate prosperity.

In 2011 Travel & Tourism accounted for 255 million jobs globally. At US$6.3 trillion (9.1% of GDP) the sector is a key driver for investment and economic growth.

Sourced: ttrweekly