Nowadays, taxing airlines has become a hotly debated that divides all travel decision makers in two sides. From one hand, some specialists assume tourism as a revenue generating source & taxing their flight tickets will tend to produce higher growth income. From the other hand, some others think theses charges that increase ticket pr
ould negatively impact their ticket sales.
essay is going to consider the both views of the arguments.
From one point, countries that are considered to be
traps, and people tend to visit due to the
attractions it co
ike Italy, Germany ,
c., those countries can benefit from
advantage by levying taxes on airline tr
ho are willing to pay any money to watch the tremendous views there.
, they consider it as an important source of income.
From another point, some other countries may lack these natural views & may not be a
destination, but they try to create a competitive advantages in its prices.
, turkey has recently become one of the top
destinations in the world.
it does not contain many unique places like others, but it has brilliantly achieved a competitive advantage in travel costs. So, it is remarkable of its low cost travels not
its hotel costs, but
its airline costs.
, these countries` policies will assume non taxing in order to attract their clients.
In a nutshell, since taxation is a way of price increase, market conditions is
the only determiner.
, the more demand on tickets increase & tr
re inelastic to prices, the more the governments will be willing to charge taxes & the vice versa.
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