The Impact Of Tourism Taxation On The Performance Of Businesses In The Accommodation Sector In Limbe Cameroon

ABSTRACT

With the post-COVID-19 era in view, the tourism sector is bound to be one of the most affected, as several businesses involved in this sector already anticipate a boost in activities. Tourism taxation is sure to be implemented as it is one of the possible instruments for the regulation of tourism and preventing or mitigating the negative impacts of tourism.

However, the tourism sector in Cameroon is made up of small businesses and the taxation of these businesses in Cameroon is seen as a major hindrance to its performance.

The thesis aims to evaluate the current situation of tourism taxation in Cameroon, especially the accommodation Tax and Value Added Tax in the case of Limbe (southwest province), and investigate if, and how, taxation in the accommodation sector has influenced its financial and operational performance. Questionnaires were distributed to 32 managerial staff of 16 accommodation businesses in Limbe.

The study concluded that the value-added tax has a strong negative impact on the performance of these businesses, as a 1% increase in VAT will lead to a 21.7% decrease in performance. Also, accommodation tax has a strong negative impact on performance as a 1% increase in accommodation tax will lead to a 27% decrease in performance.

The study, therefore, concluded that there is a need for accommodation business operators to know the taxes associated with their business.

More so, there is a need for a friendlier tax system and policy. The study also made recommendations on the SWOT analysis.

Keywords: Accommodation tax, Value Added Tax, Accommodation sector, Performance

FURTHER READING: SIMILAR PROJECT TOPICS WITH MATERIALS ON TOURISM AND HOSPITALITY MANAGEMENT