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The Tax Competitiveness of Tourism Enterprises in an International Context

Author

Listed:
  • Lenka Rihova

    (University of Finance and Administration)

Abstract

Competitiveness at the micro level of individual enterprises is an important issue for the national economy, but the international competitiveness of enterprises represents a direct expression of the state’s superiority. The escalating growth of competition is now noticeable in many sectors, with each sector simultaneously facing different threats. Tourism is a specific sector with prices that are largely dependent on labour costs and other tax burdens. At the same time, this sector features the lowest wage level in the Czech Republic. The present work is focused on analysing the most important types of taxes in the tourism sector in the Czech Republic, Slovakia and Austria and their impact on the international competitiveness of enterprises. The countries were selected based on their demographic and geographical similarities. The most important tax in this regard is value added tax (VAT), which has a direct impact on the final price of goods and services consumed by tourists. The total level of direct tax on tourist consumption is calculated as the weighted average of VAT rates for each selected country. Entities conducting business in hotel and catering face a high share of labour costs relative to the cost of other capital that can also be transferred to tourists through higher prices. The aim of this contribution is to provide a ranking of selected countries according to the tax burden directly imposed on tourism consumption and to determine the relative tax competitiveness of the Czech Republic as a tourist destination for 2017.

Suggested Citation

  • Lenka Rihova, 2018. "The Tax Competitiveness of Tourism Enterprises in an International Context," ACTA VSFS, University of Finance and Administration, vol. 12(1), pages 74-95.
    • Handle: RePEc:prf:journl:v:12:y:2018:i:1:p:74-95
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    File URL: https://www.vsfs.cz/periodika/acta-2018-1-03.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    competitiveness of enterprises; VAT; taxes; taxation;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • Z3 - Other Special Topics - - Tourism Economics
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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