The big warm American welcome

Alternative title: Have a nice day and by the way, thanks for the Stadium.

Happy New year, Happy New blog. This site will discuss travel but not in the manner of the conventional unthinking drivel you get on main stream US media. First up let's get one thing clear. I do not work in or for the travel industry but travel with my job in a major US multinational company, and for fun when I can.

I travel around the world where I recently submitted a few months of expense statements. Meine Texas Freedom fried Franglais 'chap my ass' de jour is US stiffing it to their visitors (so called guests) with the special, city and state taxes . Whilst you may find that cheap hotel on the internet, you can subsequently find 15-25% or more added to the bill when you check out.

Throughout history, the traveler has been prayed on as a source of revenue : tolls; tariffs; kidnapping; shipwrecking and piracy. A 1996 New York Times article discusses a survey conducted for the Travel and Tourism Government Affairs Council in 50 cities: "Travel Taxes in America's Top Destinations,":

The 43 cities that responded to the survey question about restaurant taxes collected $3.1 billion in 1995 -- of which only $47.9 million, or 1.6 percent, went to travel and tourism. The 43 cities that answered that part of the survey about hotel taxes (not all of them the same 43 that answered the restaurant question) collected $1.8 billion last year, of which $637.3 million, or 34 percent, went to travel and tourism.”

Further more

The report does not object to the fact that state and local taxes, which make up the greatest share of taxes paid by the traveler, usually wind up in the general fund. But it strongly protests the use for general purposes of additional taxes and fees charged to the traveler, including taxes on hotels, restaurant meals and car rentals, which are rarely earmarked for tourism promotion, visitor information centers and other programs that directly benefit the traveler.

"Too many states and cities have used this scheme," the report declares, "to raise new revenue from visitors who are not voters to pay for programs unrelated to travel."

Most of the report consists of a city-by-city breakdown of taxes, and many of its findings are surprising. For example, Columbus, Ohio, had the highest room tax in 1995 of the cities surveyed, 15.75 percent. Seattle was runner-up with 15.2 percent, followed by Anaheim, Houston and San Antonio, each with 15 percent. Las Vegas had the lowest hotel tax, 8 percent, followed by Portland, Ore., at 9 percent.

Finally it concludes with:

In addition, 31 cities tack on additional taxes for cars rented off airport property, while 18 impose additional surcharges -- often to pay for athletic stadiums

In a classic example of “When you rob Peter to pay Paul, you’ll always have the support of Paul”, the voting population is behind this ruse.

In November 1999, the National Association of Counties and the U.S. Conference of Mayors commissioned National Research, Inc., to conduct a random survey of 1,000 American taxpayers on their opinions about sales taxes and the collection of these taxes on goods sold by vendors on the Internet. [Source] . Respondents were asked to rank five types of taxes based on their preference. The taxes were property taxes; personal property taxes; income taxes; sales taxes and hotel/ motel/tourism/occupancy taxes. Overall, 97 percent of respondents ranked their tax preferences. Not unexpected was the response that the number one most preferred tax (37%) was the hotel / motel/ tourism/occupancy taxes group of taxes because these are paid by nonresidents of the city or county.

This is outrageous . I visit YOUR place, I spend money in YOUR businesses, restaurants and shops, I rent a car, I pay sales taxes. Now when I check out I find that I am funding YOUR football stadium or contribute to educating YOUR kids. What on earth?

In most places in the world I visit, the room rate is the room rate. What is it about the US arrangement that is fair? If invited around for dinner and I brought some booze, I would not expect to pay a corking fee, donate for parking on street and or make a contribution to the Kid’s Montessori school.

Still there may be end to this type of scams with the credit markets freezing up. In a recent example. Orlando has delayed selling the first $300 million in bonds for construction of the Orlando Magic arena. This was to be paid for “repaid with hotel taxes, downtown-property taxes, sales taxes and other city revenue”. Note to Orlando Politicans: You are a bunch of scumbags for even proposing it in the first place.

In April 2007, the Texas House passed a bill giving Houston and other local governments the means of funding construction of sports facilities and other projects. This was a pyrrhic victory as before passing it, “the House removed the hotel occupancy tax, which meant Houston will not have sufficient funding tools to build a basketball arena. Left in the bill were taxes on rental cars, parking and sporting event tickets, and the authority for local governments to use funds levied for regional transit purposes”. The reason for removing hotel tax was the rational that visitors to the Texas Medical Center would not be a user of the Sporting arenas. Totally true as TMC is about 9 hospitals or so and people come here in troubled reasons. The last thing on your mind would be Texan's or Astro's game.

Compare this tax the non-voter attitude to New Zealand whose tourism operators fought hard against such proposals in Auckland.

Tourism operators from around the country are overwhelmingly opposed to taxing visitors to Auckland to fund a new or redeveloped stadium, according to a new survey.

In releasing the survey results today, Tourism Industry Association New Zealand (TIA) Chief Executive Fiona Luhrs said 97 percent of respondents opposed using bed or airport taxes to fund the stadium.

“TIA and the wider tourism industry are in full support of the Rugby World Cup 2011 and look forward to the event being a huge success. But the funding lines for a stadium should not be from bed taxes and departure taxes,” Ms Luhrs said

Finally, whilst I am still on a rant about stiffing it to your guests. The ultimate dishonorable mention goes to the Florida towns of Waldo and Lawtey who make up their revenues by fining speeding motorists whilst passing through. The cities have earned the ominous distinction of being one of only two official speed traps designated by the American Automobile Association due to the city's strict enforcement of the local speed limit on U.S. Routes as they cuts through town.

So this the new world order: the traveler getting their wallet picked electronically in front of your eyes. At least in Rome, I expect to get flinched by Romanian beggars. Here we have local government doing it for us.

So much for land of the free. Perhaps I’ve found the one job that "American’s want to do" after all....highway robbery.

Phileas Fogg,
Houston, Texas.
Jan-01 2008

Be wary of strong drink. It can make you shoot at tax collectors... and miss. ~Robert Heinlein