 Tax Competitiveness of Croatia and Slovenia as Tourist DestinationsTanja Kosi Antolič and Štefan Bojnec () Academica Turistica - Tourism and Innovation Journal, 2010, vol. 3, issue 1-2, 38-52 Abstract: The increasing competition in the tourism sector forces tourist destination countries to search for ways to improve their competitiveness. One way is cutting non-cost element of prices such as taxes. The paper examines and analyses the most relevant types of taxes in the tourism sector and presents the corresponding tax rates for Croatia, Slovenia and their rivals in the Mediterranean region. The most significant tax on tourist consumption is value added tax (vat), which is considered in great detail. Within a certain country different vat rates apply to different goods and services consumed by tourists. The overall level of direct taxation of tourists’ consumption is computed as the weighted average vat rates for each European Mediterranean country and the results are compared. Businesses engaged in labor intensive hospitality industry face large share of labor costs and thus considerable payroll taxes. Since a part of taxes can be passed on to tourists through higher prices, we briefly present also overall tax rates on labor incomes and tax rates applied to business earnings. Keywords: tourism; taxation; value added tax; Mediterranean (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:prp:jattij:v:3:y:2011:i:1-2:p:38-52 Access Statistics for this article Academica Turistica - Tourism and Innovation Journal is currently edited by Gorazd Sedmak More articles in Academica Turistica - Tourism and Innovation Journal from University of Primorska Press |
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