Survey: 49% of Travelers Alter Plans Due to High Travel Taxes

The U.S. Travel Association today announced the initial study of its new Travel Tax Institute, the nation's preeminent center of research and expertise on rising travel taxes at the city, county and state levels. The Institute conducts comprehensive research and provides accessible information on travel taxation and the potential impact on both local economies and the broader U.S. economy.

"Travelers are often considered an easy tax target, but few public officials understand how rising travel taxes influence consumer behavior and impact the economy," said Roger Dow, president and CEO of the U.S. Travel Association. "We believe it's important that political leaders see travelers not just as ‘out-of-towners,' but as key supporters of local jobs, businesses and development."

As its inaugural project, the Travel Tax Institute conducted a new survey on consumer attitudes toward travel taxes. The research reveals that taxation has a clear impact on travel planning and spending decisions. Among the key findings:

In addition to surveying consumer attitudes, the Travel Tax Institute is creating a comprehensive database to track travel taxes in 50 U.S. destinations – from taxes on airfare and lodging to rental cars and restaurants. The database will also track the uses of these tax revenues, such as funding of destination marketing programs or contributions to the general fund. The database will be available to U.S. Travel members.

The Travel Tax Institute also has launched a price elasticity research project to better understand travelers' sensitivity to price and the degree to which current and potential travel tax and fee levels could be reducing demand for travel.

"Government leaders are understandably facing difficult budget decisions," said Dow. "But too often they are setting travel tax policy without a full understanding of how taxes affect travel demand and impact their local economies. The Travel Tax Institute will equip policymakers and industry leaders with the tools they need to make informed decisions."

Read more about the Travel Tax Institute and the results of the consumer survey on travel taxation.