WTTC campaigns for governments to implement policies that encourage the growth of Travel & Tourism. Along with investing in appropriate infrastructure, this means creating an intelligent tax regime which allows the private sector to be competitive.
WTTC has conducted several pieces of research to demonstrate the negative impact taxation has on Travel & Tourism, hindering a sector from fulfilling its full potential in contributing to GDP and creating jobs.
Tax Burden on US Travel & Tourism (2013): WTTC has researched the proportion of taxation paid by the industry in the USA, compared to other sectors and the findings show that the US travel industry is taxed at a higher rate than other sectors. Direct Travel & Tourism taxes in the US represented 3.2% of all taxes collected in 2012. By comparison, Travel & Tourism GDP is 2.7% of the US economy. This means that Travel & Tourism is taxed at a higher rate than the average of the economy by 0.5 percentage points, or a 15% premium over its GDP share.
Air Passenger Duty (2012): WTTC undertook research to understand the economic impact of APD on the UK’s GDP and employment. The research indicated that the impact is significant and that removing Air Passenger Duty would result in an additional 91,000 British jobs being created and £4.2 billion added to the economy in 12 months.