CURRENT ISSUE
Current issue#3
Objectives: Interpret the effect of different international hospitality accounting and taxation systems. Reflection: Find a current issue and write a one-page summary with your comments.
The past three years, the global tourism industry has reported an extraordinary financial as well as an economic mayhem. The financial upheaval has been responsible for the design of the economic landscape of the global economy. This has presented challenges for the various governments in relation to their general spending as well as fiscal policies. There have been many recorded damages that have been caused in several economies and extreme measures are being taken in the repair of these economies. In the ever increasing global economy that is faced by thriving business investments, principal novelties as well as skilled people, there will be a massive migration to countries where the tax models can accommodate and offer a friendly environment for growth.
All the governments are facing the challenges of taxation policies. This has been reported by all sizes as well as all stages of governments. While it is very significant to note that tax is very important in any economic as well as social developments, it is worthy to note that taxes need to be levied so that they do not hinder the prospects of an industry to generate an adequate and consistent profit to enable their growth and reinvestments. There should exist a common agenda relating the management of tax models to the need for the assurance of simplicity and efficiency in the system.
Comments
The influence that tourism has on the economy of the destination country should not be ignored. This however only works if there are effective mechanisms that have been put in place to ensure taxation of the tourism related enterprises. This should be done in a tactful manner that generates revenues for the government while also encouraging the industry. This implies that the amount to be taxed needs to be reasonable and not so high that it discourages the industry’s growth. Key decision makers should always strive to ensure that tourism and the economy benefit each other mutually
Reference
http://www.bbc.co.uk/news/uk-wales-22738741
