Abstract
West Africa mass tourism focuses on Scandinavian, European, and United States tourists taking beach holidays during the winter months. Beach resort hotels seeking to attract international tourists are in a monopolistically competitive market structure. Localities, rather unsuccessfully, attempt to differentiate the sun/fun package which they offer from those of their competitors. Prices are locked into a small price range. In West Africa a general export tax rate of 10 to 15 percent of total tourist expenditures is incorporated in the industry's cost structure. The impact of adding two types of resort hotel taxes is considered: land taxes (lump sum) and bednight taxes (unit). An increase in hotel land taxes will not change the price or bednights offered by hotels. They will continue to operate at their initial output and price position. Whereas, added bednight taxes are an addition to unit cost and, therefore, will effect the output level and result in a new, slightly higher price and fewer hotel guests.
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