A second option for taxing tourism is, as indicated above,through general indirect taxation.
Yet these taxes are usually low in relative terms; for example,
Value Added Tax (VAT) rates applied to hotels are approximately 50%
lower than general tax rates in the former 15 EU members
and 40% lower than general rates in new EU member countries,
whereas tax rates in restaurants, bars and cafes are, respectively,
about 30% and 20% lower
(European Commission,2005; World Travel & Tourism Tax Policy Center, 2002). Therefore,