Download The New Ontario: Social and Demo

Government Revenues
Attributable to Tourism
Conrad Barber-Dueck, Statistics Canada
The Seventh International Forum of Tourism Statistics
Stockholm, Sweden
June 10, 2004
Outline
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Introduction
History and Aim of Study
Scope of Study
Concepts
Methodology
Results
Conclusion
Why Measure Government
Revenue from Tourism?
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From the TSA, GDP and employment data
can be obtained
Government revenue data not available
directly from the TSA
Government revenues from tourism are
important to policy makers and for
government funding of tourism
The Canadian Experience
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Completed a second study on government
revenues
This second study updates and expands
upon earlier study done for the year 1992.
Current study using 1998 as reference year,
the most recent TSA in Canada
Aim of Study
To answer the following questions:
• How much does each level of government
collect from tourism (federal, provincial and
municipal)?
• From what sources (tax or non-tax) is this
revenue generated?
• What commodities and industries contribute
the most revenue?
Scope of Study
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The study expands the scope of the revenues
considered to include all tax and non-tax
sources of government revenue
In the end, 86% of all sources were covered
(initial study covered 55% of all sources of
revenue)
Exclusions, such as other current transfers,
have little tourism impact
Sources of Government
Revenue in Canada
Total Revenue
Taxes and Contributions to social insurance
Taxes on incomes
From persons
From corporations
From non-residents
Contributions to social insurance plans
Other taxes on production and products
Other current transfers from persons
Investment income
Sales of goods and services
$ millions
402,782
% of total
100.0
333,255
162,552
128,935
30,800
2,817
43,465
127,238
7,155
31,823
30,549
82.7
40.4
32.0
7.6
0.7
10.8
31.6
1.8
7.9
7.6
Coverage of Government Revenue
Total Revenue
Taxes and Contributions to social insurance
Taxes on incomes
From persons
From corporations
From non-residents
Contributions to social insurance plans
Other taxes on production and products
Other current transfers from persons
Investment income
Sales of goods and services
% of total
85.7
94.4
88.4
87.3
100.0
15.6
100.0
100.0
0.0
0.0
100.0
Concepts
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Only revenues directly attributable to tourism
are included
Includes taxes on sales of goods and
services sold directly to visitors and taxes on
income generated by the production of these
goods and services
Includes sales of goods and services by
government sold directly to tourists
Based on TSA/SNA Concepts
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Taxes were on a National Accounts (accrual)
basis
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Expenditures taken from the Canadian TSA
Data Sources
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Input-Output system has tax data by commodity
and industry
Some tax data received from Canadian
Revenue Agency (CRA), the government
department responsible for the collection of tax
data.
Tourism shares of commodities and industries
available from the TSA
Methodology
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Calculate tourism shares for each industry and
commodity (from TSA)
For example, say the tourism share of
accommodation equals 90%. Then 90% of the
tax revenue generated by accommodation
would be attributable to tourism
Calculations of shares done at the most detailed
level of 727 commodities and 300 industries
Taxes on Income
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Based on the industry of origin
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Employment insurance and contributions to
pension plans taken from the economic
accounts
Taxes on Corporate Profits
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Distribution of taxes for corporate profits not
available by industry
Operating surplus was available by industry
Used the distribution of operating profits to
allocate taxes from corporate profits
Assumes taxes are proportional to operating
surplus across industries
Government Sales of Goods and
Services
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Includes the revenue on services bought
directly by tourists (eg. camping fees, park
fees, recreation and entertainment)
“Social transfers” by government not included
in TSA or in study
Thus, income taxes of those working at a
tourism information booth (not paid for by
tourists) or working on tourism research is
not included in the study
Results: By Source
Government revenue
Attributable
to tourism
($ millions)
% of
total
(%)
per $ of tourism
spending
($)
Total
13,825
4.0
0.301
Taxes
Income Taxes
Other taxes on production
Taxes on products
Contributions to social insurance
Sales of goods and services
12,178
3,453
1,812
6,913
1,291
356
4.5
2.4
2.7
11.4
3.0
1.2
0.265
0.075
0.039
0.151
0.028
0.008
Results: By Level of Government
Government revenue
Attributable
to tourism
($ millions)
% of
total
(%)
per $ of tourism
spending
($)
Total
13,825
4.0
0.301
Federal
Provincial/territorial
Municipal
6,790
6,221
814
4.2
4.4
2.0
0.148
0.136
0.018
Results: Income taxes, taxes on production and
contributions to social insurance plans
Government revenue
Government
revenue
($ millions)
Directly attributable to tourism
($ millions)
(%)
Industry
Air transportation
Other transportation
Recreation & Entertainment
Automobile Rental
Travel Agencies
Accommodation
Food services
Non-tourism Industries
1,659
3,274
2,363
548
402
1,987
3,441
240,196
1,282
394
553
186
382
1,305
592
1,862
77.3
12.0
23.4
33.9
95.0
65.7
17.2
0.8
Total economy
253,870
6,556
2.6
Results: Taxes on products (final sales)
Government revenue
Government
revenue
($ millions)
Directly attributable to tourism
($ millions)
(%)
Commodity
Air transport
Other transportation
Travel agent services
Recreation and entertainment
Accommodation
Food and beverages
Automobile Rental
Non-tourism commodities
628
71
54
5,779
402
2,679
79
50,883
599
38
54
1,427
363
533
18
3,881
95.4
53.5
99.6
24.7
90.3
19.9
23.0
7.6
Total economy
60,575
6,913
11.4
Conclusions and Further Work
The government revenues project provides
another important indicator of the importance
of tourism in an economy
Issues
• Timeliness needs to be improved
• Expand to full coverage of all government
revenue sources
• Incorporate a regional dimension
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