AIR TRANSPORT TAX AND ITS CONSEQUENCES ON TOURISM

Since 1990, a worldwide proliferation of taxes on civil aviation has raised numerous protests from the airline industry. A typical example was the proposed the USTTA's facilitation fec, which rcquircd airlines and passengcr shipping lines to pay a ''user fee' on foreign nationals. This imposition was perceived to be ''discriminatory'' in that it required foreigners to bear the costs of promoting tourism to the United Statcs. This paper defines the term ''tax'' and ''charge,'' raises issues emerging as a result of such taxations, discusses international responses to this development, and concludes that both international air transport and tourism are inextricably linked to each other and to tax one in order to develop the other would be a self-defeating measure.