How do you feel about paying accommodation tax? Exploring the mediating role of perceived fairness
Abstract (150 Words)
Accommodation tax might be a suitable measure to raise revenue from tourists, but it also may decrease the number of tourists, resulting in significant economic damage to destinations. Past studies have tried to estimate the impact of accommodation tax, but they failed to incorporate a non-price aspect in their methods. This study explored the mechanism of how tourists react to accommodation taxes using perceived fairness as a mediator between various independent variables and willingness to pay. The study found that loyalty and past experience (i.e., how often tourists have paid accommodation tax before) have a significant indirect effect on willingness to pay through perceived fairness. On the other hand, earmarking and providing justification, which are common practices in an accommodation tax, have neither direct nor indirect effects.
How do you feel about paying accommodation tax? Exploring the mediating role of perceived fairness
Accommodation tax might be a suitable measure to raise revenue from tourists, but it also may decrease the number of tourists, resulting in significant economic damage to destinations. Past studies have tried to estimate the impact of accommodation tax, but they failed to incorporate a non-price aspect in their methods. This study explored the mechanism of how tourists react to accommodation taxes using perceived fairness as a mediator between various independent variables and willingness to pay. The study found that loyalty and past experience (i.e., how often tourists have paid accommodation tax before) have a significant indirect effect on willingness to pay through perceived fairness. On the other hand, earmarking and providing justification, which are common practices in an accommodation tax, have neither direct nor indirect effects.
