Economic Effects of Tourist Tax Introduction in Russian Federation

Student: Koliev Ilya

Educational Programme: Economics (Bachelor)

Year of Graduation: 2018

This paper concentrates on the economic analysis of the introduction of travel tax. The idea of the tax is that government seek for reinvestment funds to develop tourism infrastructure. On the other hand, there is possibility of decreasing tourist flow in the following regions due to increasing cost of travel. As a result, tax revenue may decrease as well. The demand for accommodation was modelled in order to analyse the effects of tax introduction. The analysis suggests the following result: tax introduction will not lead to decrease of tourism demand.

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