Majid FESHARI
Assistant Professor of Kharazmi University province, Iran. majid.feshari@gmail.comAli AKBAR TAGHIPOUR
Assistant Professor of Damghan University taghipour.a9@gmail.comMojtaba VALIBEIGI
Assistant Professor of Buein Zahra Technical University, Buein Zahra city, Qazvin province, Iran. M.valibeigi@bzte.ac.ir Mojtaba.valibeigi@gmail.comAbstract
The relationship between tax and tourism receipts is one of the crucial issues in tourism literature and has been considered empirically in recent years. For this purpose, the main objective of this paper is to determine the long-run relationship between tax ratio to GDP and tourism receipts in OIC selected countries during the 1990-2014. The econometric model for these countries has been estimated by applying dynamic OLS approach. The main findings of this study reveal that tax ratio has negative effect on the tourism receipts and GDP per capita and its growth have positive and significant effect on the tourism receipts in Islamic selected countries. Hence, the main policy implication of this paper is that the tourism managers in these countries should adopts policies to improve the tax revenue through the increase of product capacity. Moreover, the increasing of GDP per capita can improve the tourism receipts in these countries.
Keywords: Tourism, Taxation, Tax Incentives, GDP Per Capita, DOLS Approach
JEL classification: C23, L83, O49