Firstly, we consider the implementation of an ad quantumor unit tax on hotel occupancy.
6 To sum up previous conclusions, the government may have five reasons for choosing room taxes as:
(i) they are a common way to tax tourists, both in small tourist economies (e.g., McAleer et al., 2005)
and in large industrial countries like the USA (e.g.,Bonham & Gangnes, 1996);
(ii) they may have a good connection with the extra costs brought about in the provision of public goods and services;
(iii) they may allow for a strategic action in tourism demand;
(iv) they allow for varying levels of taxation for different lodging categories;
and (v) they can easily be de-centralized and, therefore, used more intensively by tourism-oriented regions.