Abstract
This article summarizes a study of the impacts of room taxes on the lodging industry by (1) reporting on the findings of Phase II of an overall study assessing the negative impacts on number of rooms rented of room taxes levied on the lodging industry, and (2) applying the price elasticity of market demand found in step 1 to the average amounts of room taxes paid, as measured in Phase I of the overall study. The elasticity measurement comes from a statistical model based on data from a national probability survey of the properties owned by members of the American Hotel and Motel Association taken in spring 1990.
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