Nowadays, taxing airlines has become a hotly debated that divides all travel decision makers in two sides. From one hand, some specialists assume tourism as a revenue generating source & taxing their flight tickets will tend to produce higher growth income. From the other hand, some others think theses charges that increase ticket prices which would negatively impact their ticket sales. This essay is going to consider the both views of the arguments.
From one point, countries that are considered to be tourist traps, and people tend to visit due to the tourist attractions it contain like Italy, Germany, etc. , those countries can benefit from this advantage by levying taxes on airline travelers who are willing to pay any money to watch the tremendous views there. Thus, they consider it as an important source of income.
From another point, some other countries may lack these natural views & may not be a tourist destination, but they try to create a competitive advantages in its prices. For instance, turkey has recently become one of the top tourist destinations in the world. Although it does not contain many unique places like others, but it has brilliantly achieved a competitive advantage in travel costs. So, it is remarkable of its low cost travels not also its hotel costs, but also its airline costs. Hence, these countries` policies will assume non taxing in order to attract their clients.
In a nutshell, since taxation is a way of price increase, market conditions is the only determiner. In other words, the more demand on tickets increase & travelers are inelastic to prices, the more the governments will be willing to charge taxes & the vice versa.
Nowadays, taxing airlines has become a
hotly
debated that divides all travel decision makers in two sides. From one hand,
some
specialists assume tourism as a revenue generating source & taxing their flight
tickets
will tend to produce higher growth income. From the
other
hand,
some
others
think
theses
charges that increase
ticket
prices
which would
negatively
impact their
ticket
sales. This essay is going to consider the both views of the arguments.
From one point,
countries
that
are considered
to be
tourist
traps, and
people
tend to visit due to the
tourist
attractions it
contain
like Italy, Germany, etc.
,
those
countries
can benefit from this advantage by levying taxes on airline travelers who are willing to pay any money to
watch
the tremendous views there.
Thus
, they consider it as an
important
source of income.
From another point,
some
other
countries
may lack these natural views & may not be a
tourist
destination,
but
they try to create a competitive
advantages
in its
prices
.
For instance
, turkey has recently become one of the top
tourist
destinations in the world. Although it does not contain
many
unique places like others,
but
it has
brilliantly
achieved a competitive advantage in travel
costs
.
So
, it is remarkable of its low
cost
travels not
also
its hotel
costs
,
but
also
its airline
costs
.
Hence
, these
countries`
policies will assume
non taxing
in order to attract their clients.
In a nutshell, since taxation is a way of
price
increase, market conditions is the
only
determiner. In
other
words, the more demand on
tickets
increase & travelers are inelastic to
prices
, the more the
governments
will be willing to charge taxes & the vice versa.