VAT IN TOURISM INDUSTRY

The Impact of VAT increase in Tourism Industry



The Impact of VAT increase in Tourism Industry

Introduction

Tourism industry is one of the largest worldwide, generates nearly 212 million jobs and represents an important contribution to gross domestic product of many. In an industry of this size, the information and communication technology (ICT) has played a key role as a means to improve the efficiency of the organization as well as the delivery of services. Tourism in the era of globalization has developed into the world economy as a very important and dynamic sector, particularly for developing countries. Its growth has consequences not only to the activities associated with tourism (especially in the private sector) but also to other sectors, such as transport. It enables the creation of jobs for differing levels, professional and unskilled, and who are generally excluded from the labor market, such as women. In some developing countries, tourism is already an important and dynamic sector and will continue in other countries. The possibilities of this phenomenon are to use, but it is also necessary to ensure that the sector does not develop in an uncontrolled manner threatening the natural environment and the social and cultural life of the country. Uncontrolled development of the sector could threaten its long-term development. Like other leading industries, tourism is considered as a growing industry worldwide. Today it is common for people to cross the globe in search of an exotic paradise for shopping, attending a conference, play golf, participate in a tournament sports, betting in a casino, visit a theme park, relax in a spa or be medical or cosmetic surgery in a five-star hospital.

Tourist can meet their needs and desires in the same for fast food chains, supermarkets and clothing stores that are offering exciting offers to tourist. Tourism is truly a global business that makes everything good on earth. Most travelers would not want to be aware that they are fueling a multibillion-dollar industry and contributing to unsustainable patterns of consumption and production. There is little awareness that they are the ones who pay the social and environmental costs. The latest World Tourism Barometer, published by the World Tourism Organization (WTO) United Nations indicates that international arrivals amounted to about nine billion by the end of 2007, thus continuing the steady growth experienced in recent years. It identifies the Asia-Pacific region as the engine behind the growth of world tourism, in which China and India represent the fastest growing markets.

According to the World Travel and Tourism Council (WTTC), travel and tourism now employ approximately two hundred thirty-one million people and generate more than 10.4 percent of world GDP. The Third World countries share many hopes in tourism. Third world countries are the ones who have to take serious steps to attract tourist to their countries. There is no doubt that tourism has many effects on the travel destination, its people and its landscape with it. These effects are particularly evident in third world countries, which ...