Governments need to recognise tourism as a driver of jobs and growth and “better monitor the impacts of taxation”, according to the Organisation for Economic Cooperation and Development (OECD).
The OECD’s recently published report Tourism Trends and Policies 2014 notes: “There has been an increase in the number and scope of taxes especially on air travel . . . [and] governments need to monitor the impacts on competitiveness.”
However, the OECD declined to comment on the taxation policies of specific countries, avoiding overt criticism of the UK’s Air Passenger Duty – the world’s heaviest air travel tax.
Alain Dupeyras, head of the tourism unit at the OECD centre for entrepreneurship, told Travel Weekly: “We are not ready to discuss taxation and competitiveness. The evidence is mixed. But we are able to show some taxes support tourism.”
The OECD report covers the period 2008-12 and Dupeyras said: “Tourism showed remarkable resilience during the crisis.
“Everybody [now] recognises the benefits tourism brings to the economy. Tourism has gained a little in importance because of the crisis.”
However, he said: “Active tourism policies are essential.”
The OECD comprises the European Union and much of the rest of Europe, Turkey, the US, Canada, Australia, Japan, Korea and Mexico.
Its report notes the industry accounts for 4.7% of GDP and 6% of employment in member countries, which together account for almost 60% of global tourism.
OECD members saw average growth in arrivals of 1.9% between 2008 and 2012. However, tourism receipts across OECD members rose just 0.7%.
The report notes: “Long-haul flights from Europe have fallen . . . as more people take shorter trips” and “travellers are getting older, with around one in four aged over 55”. As a consequence: “Attracting more tourists from emerging economies will be key.”
Yet the OECD warns: “Travellers from these countries are likely to encounter more demanding visa and entry formalities when visiting OECD countries.”
It urges: “Governments should put in place measures that identify and facilitate high volume, low risk legitimate travellers so they can travel more freely.”