Impact of VAT (Value added Tax) Increase on Tourism industry

Impact of VAT (Value added Tax) Increase on Tourism industry To evaluate the impact of VAT (Value added Tax) increase on Tourism industry of U.K in 2011. 2) Provisional Working Title: The tourism generates a major contribution to UK economy. It generated about  £85 billion offering 3.5 percent to national GDP. About two million jobs are maintained by the tourism industry in which 1.4 million are directly employed in the sector with five percent of UK employment. The tourism industry of UK has considerably reduced in the past ten years drastically. The closing stages of the provisional VAT reduction that took place in January 2010 are expected to negatively influence the UK tourism industry completely. Even though the return of the VAT rate to 17.5% will not have a specific unfavorable effect on lodging providers and tourist attractions, it is bounce to minimize the competitiveness of U.K based on the recent measures collected in Europe. For example, consider France lowered the VAT rate for restaurants from 19.6% to 5.5% and hence Germany proclaimed that it will lessen its VAT rate on lodging from 19% to 7% in January. Most of the reports suggested that the tax rate is more when compared to other destinations. Hence, it shows that the visitors to U.K face higher prices that generate the country to be less competitive. Moreover, the lower rate would support savings in the sector that could knock over the turn down in the Balance of Payments and add up to  £1.6 bn in the first year in the consecutive years. On an average of the assessment of VAT rates in some crest rival tourist destinations such as France, Spain, Italy, the US and Australia revealed that the visitors of U.K will compensate about 10% more on housing and restaurants and 3.5 % extra on appeals and remaining items than they would in any of those substitute countries. A vat rate of 17.5% places the UK tourism sector at an apparent upgrading in the forceful comprehensive tourism market. In this connection, this research aims at evaluating the impact of VAT increase in the tourism industry of U.K in the year 2011. 3) Aims and objectives of the research: The important aim of this research is to evaluate the impact of VAT (Value added Tax) increase on Tourism industry of U.K in the year 2011. Objectives: To understand about the effectiveness of tourism taxation in U.K To analyze the trends and issues of U.K tourism To understand the economic effects of changing VAT rates on the U.K tourism industry To conduct a primary research evaluating the impact of VAT (Value added Tax) increase on Tourism industry in 2011. To analyze the results of the primary research 4) What is already known about this topic? (Preliminary literature review) Literature review: The following literature provides the information collected from secondary sources of information say ( articles, journals, various websites, white papers, annual reports, magazines, documents, texts , statistics and so on ) Several authors views and opinions are considered to draw a conclusion on the existing literature. The economic evaluation of Tourism: The authors Dwler and Forsyth (1993) explains that Tourism is viewed as an increasing economic action and it is desirable. The positive influence of the economic proceeding is also required in it. Most of the interested parties inquire to determine the effect of tourism on economic activity. Hence, these interested parties might be policy makers charged with the generation of the policy towards the segment. They may involve promoters of events or policy changes and government treasuries observing spending on tourism ventures or may be local authorities. Similarly, the authors Fletcher (1994), Frechtling (1999), Crompton Lee and Shuster (2001), Tyrell and Johnson (2001) illustrates that a predominant method is employed for analyzing the economic impact of the tourism depending on the input and output analysis. Consequently, the authors Wanhill, west, Gamage (2001) says that an input –output model is used to evaluate the change in the question. ii) Effectiveness of Tourism Taxation in U.K: The authors Ramesh Durbarry and Thea Sinclair illustrates that tourism in United Kingdom is considered as a chief source of revenue, service and foreign exchange receipts. Its effects also fall over to remaining divisions of the economy. But, the tourism businesses in U.K underwent plenty of issues in the present days. This imitated major decline in the shares of the world tourism market and decline in the intensity of the valid revenue for every visit for most of the UKs prominent tourism markets. As a result, the level of the price competitiveness on tourism receipts provides some concerns specially. Tourism taxation is a significant resource of measuring price competiveness in the economy. However, tourism makes an imperative payment to the economy. Let us check those points one by one: Tourism and day visitors offered about 5 percent of GDP (gross Domestic product) over  £ total of 61 billion in the year 1999. Number of the people working in the tourism businesses of 125,000 are about 1.78 billion It is also considered as the largest invisible export of UK The uppermost traveler appearances are from USA, France and Germany According to Deloitte report, it is stated that the contribution of tourism to UK economy offers five per cent of the national GDP and seven percent of employment. This is the situation before ten years ago. Hence it can be concluded that the tourism industry of UK economy considerably reduced in the past ten years. Meanwhile, there are many issues that influence the countrys international competitiveness and it is also appropriate to consider the time of the raise in the rate of VAT on tourism services in the UK. Vat has been augmented from eight to 15 percent in the year 1980 to 1981 and to 17.5 percent in the year 1991. The following fig shows the U.Ks Tourism balance from 1982-2006. iii) Trends and issues of U.K tourism: The UK tourism industry suffered two important issues in the year 2010 for sustaining employment and making sustainable economic development. Hence, it is needed that the government important that the new government recognize and boost the industries that are capable to tackle these problems. The attributes such as labor intensive, low barriers of entry and high demand are suited for assisting the current economic and employment problems. According to UK labour force survey, 2008, it is revealed that UK tourism offers youth employment. Based on UK Tourism Survey, 2008, it is revealed that it provides regional employment. In fact, it offers a high return on investment and rapid return on investment. The UK tourism underwent number of issues. Even though, the sector experienced huge growth rate in getting visitors from overseas, it accompanied considerable issues given below: Even though, tourist visitors from aboard augmented about the past two decades, declines happened in the late 1990s The u.ks share of international tourism reduced to about 4.5% during the mid 1990s and remained fairly steady thereafter Reduced the development of the real tourism receipts from overseas Real tourism receipts per capita per tourist also reduced for most important of the chief UK countries Rise of the tourism price index for UK than consumer price index Hence, it can be concluded that the tourism industry in United Kingdom has underwent number of problems, especially in the decline of the share of the world tourism receipts , decline in the price competitiveness and decline in the value of the receipts per each visit of the tourist from most important regions of interest. Hence, this context is against the conversation of the tourism taxation, the price sensitivity and the world wide competiveness of the UK tourism industry that should be measured. iv) Evaluating the economic effects of changing VAT rates on the U.K tourism industry: For most of the countries, VAT is treated as an important tax in the tourism industry. The VAT rates in the European economy change across many countries both in hospitality and application of the standard rates. The member countries can install very less rates and after application of such type of rates when they select tourist facilities. Hence, the vat rates are applicable to tourism industry in industries such as accommodation, restaurants, bars and cafà © service and so on. In Europe, merely three states Denmark, Germany and UK yet relate their standard VAT rate to the tourism industry. There appears that to widespread acceptance that reducing taxes on tourism services is advantageous to the countries that have installed reduced rates to the tourism related sectors. Table to show the VAT rates in the hospitality and the Catering sector in European countries, 1998 Table to show VAT rate in hotels of Europe: Hence, from the above tables, it can be concluded that a reduction in the rate of VAT in the hospitality and the catering sector may not imply less revenue tom the government of UK. The tax had doubled during the years 1984 to 1993 due to enormous increase in numerous businesses in this segment and in their extent of business. The government earned more revenue despite of lowering the rate. Hence, the simulation results from BTA (1998) also signify that the output of VAT in UK could augment in the context of a decrease in the existing rate of VAT in the hospitality and the catering sector. Hence, it stated that these outcomes reveal that the correlation among the decrease in the rate of VAT and the increase in the tax may not imply a casual relationship. Furthermore, an econometric model is also considered to understand the VAT effectiveness in the tourism industry of UK, however, this research summarized that an improvement in the price competiveness of the tourism sector in UK could be accomplished with the help of the depreciation of the exchange rate for sterling as well as reducing the rate of VAT by lessening their prices as long as the tourism businesses react to the tax reduction by lessening the prices. Still research is required in this. Trip advisor poll (2010) revealed that the tax will increase from 17.5 % to 20% on 4th January 2011. It will influence both the costs of shopping and accommodation, tourist attractions and even car hire charges. This makes UK very expensive to nearly a quarter (24%) of European respondents. From the research, it is revealed that a quarter believe that the VAT augment will generate British holidays unaffordable. Mean while, further quarters (26%) are yet undecided whether the tax hikes will deter them from holidaying in UK next year 2011. 24% of the Britons claim that VAT increase could make domestic holidays very costlier in the year 2011. Emma O Boyle also stated that UK is considered as one of the Europes most famous holiday destinations and regarded as a world class shopping hub. Due to the VAT increase, the outstanding travel deals in 2011 of British tourism industry should work hard to be viewed as striking and cutthroat celebration alternative. 5) Why is this work important? (What contribution to knowledge / originality is involved?) This research project provides number of benefits to understand about the effectiveness of the tourism taxation in U.K. In depth evaluation of the thesis makes an individual to know about the economic effects of changing VAT rates on the U.K tourism industry. As a result, this project will be helpful to enhance knowledge in taxation, acquiring new skills, understanding ability, decision making skills and time management skills. In this manner, this project leaves a lot of scope for future researches also. 6) How will this work be conducted? (Methodology sources of data) Research methodology: Research Methodology is used to realize the concept of the project. By the research method one can know the products of analysis and also the total process of the project. Various research methods are explained by the researcher in the research methodology to find the aims and objectives of the research. For completing the project effectively a variety of research methods are discussed. For collecting the data that helps in completing the project successfully Primary research and secondary research methods are used. The data is analyzed and then results are made after analyzing the collected data. Some of the research methods are commonly used for any research process. A research work is not merely a work plan but it provides the data that has to be completed. Hence, it can be said that work plan will explain the flow from the projects research design. Moreover, the function of the research design is to facilitate that the evidence acquired permits the user to reply the initial quest ion as definitely as likely. Research design handles with a logical problem but not a logical problem. (Yin, 1989: 29) The various research processes are Experiment methods Survey methods Observation methods Case study method Literature review The research methods used for the successful completion of this project are Qualitative research and quantitative research method. Qualitative Research Method: [Marshall PA. 2003]Qualitative research method is a type of logical research. The approach of gathering in–depth information during questioning the participants is done in the Qualitative Research. Qualitative research methods are more flexible when compared to quantitative research methods. The indefinable factors can be recognized by the qualitative research methods. Participant research, in-depth interviews and focus groups are the three types of qualitative research methods. The participant observation is used for collecting the data based on the behaviors. To obtain the group data, focus groups are used. For collecting individual data in depth interviews are used. Qualitative research contains very smaller sample size. In the qualitative research mainly the interviews and group discussions are carried out. In this type of research the customer response forms, information or media clips are provided. This was generally conducted to observe and query the activities of the different groups in the present world. The scientific research is considered as the qualitative method. In the present event study, this research provides the higher inspection and survey related areas. This qualitative research offers the in depth information on the research and various issues present in the research, several generating ideas, and finally the conclusions are drawn from the possible results of the study. Qualitative research is a special kind of scientific research. It contains the investigation that: Seeks answers to a question Methodically, it employs a predefined group of procedures to reply the question It gathers evidence It also produces proof that were not determined in advance It also produces the findings that are suitable beyond the immediate boundaries of the research study. A qualitative interview technique is dissimilar from daily conversation in the following ways. First it is a line of investigation tool and a good interviewer must prepare questions in advance, and later analyze and report results. (Rubin Rubin, 1995, p.2) (Potter,W. 1996) (William Badke, 2008), (Fetterman, D. 1988) Merits of Qualitative research: It helps in building new theories It uses subjective information Explore new areas of research The questions which are complex to evaluate in the quantitative methods can be examined by the qualitative research method Demerits of qualitative research: 1) It is expensive 2) Time consuming process 3) The information gathered is limited to questionnaires and interviews. Primary research: As a part of the primary data, interviews are conducted with the government officials, higher officials of tourism department and finance department in order to predict conclusion on the impact on the VAT increase in tourism industry of U.K in 2011. Secondary research: As a part of the secondary research, number of articles, journals, various websites, white papers, survey reports, news papers, magazines, texts, documents and so on is referred in order to draw a conclusion on the economic effects of changing VAT rates on the U.K tourism industry and various trends and issues in it. Both primary (interview sessions) and secondary research (literature review) are sources of information collection. Sampling will be decided based on their availability. 7) What are the anticipated outcomes? A literature survey comparing various authors views and opinions of plenty of articles, journals, magazines, different websites, texts, and documents in order to draw a conclusion from it Analysis results of the primary research Probable recommendations for the research by considering the results acquired from the primary and secondary sources

Anne Hutchinson versus Massachusetts

Anne Hutchinson was a church going woman at the least. She moved to Massachusetts in 1634 with her husband and thirteen children. She was expecting her fourteenth when they arrived. Her main influence to migrate to the Americas was Reverend John Cotton. He was a minister to her while they lived in England and she could hear prayers from anyone else but him. Anne was a true believer of the Puritan faith and keeping up the traditions and worship. She believed in speech of â€Å"covenant of grace† not a â€Å"covenant of works†. Basically she wants people to worship what god says and what he has laid down for them to pray upon. She opposes many ministers who she believes that speaks of words that people have laid out over the years and of a man named John Calvin. He was a famous Pastor whose works are called Calvinism. This is what gets her into a big heap of trouble. While in America Anne has these meetings with people around her area and she preaches what she thinks is right and who all she believes can teach the religion the right way. Well people found out and she was put on trial among her peers to be tried for â€Å"troubling the peace and commonwealth of the churches here.† She had spoken something to a group of ministers about her beliefs and they were there to testify against her. She exclaims,† what law have I broken† thinking to herself what she did was right. Some of the men said she said it and some said she didn’t say all that she was accused of but overall the jury believed she said it. Reverend Cotton almost gets her out of it but she rambles about her beliefs again and convinces everyone that she should be prosecuted. The jury and the judges find her guilt of â€Å"troubling the peace and commonwealth†¦Ã¢â‚¬  and she is convicted and banished after she is â€Å"uncommunicative† with the outside people she knows. She stays a few months in a house in â€Å"Roxbury† then goes back to court. She then receives her final conviction which is banishment, also John Cotton now hates her for what she has done and talks down to her in the court and says she shall go to hell. She can’t ever come back to that town. She then moves to what is now â€Å"Portsmouth, New Jersey â€Å"with some of her followers. When her baby was due is was a â€Å"still baby† and people thought it was a sign of the evil she had done and called it the â€Å"devil child.† She later gets murdered with five of her kids by Indians after moving to New Netherlands.

Re Companies at Fault or Is It the Lack of Personal Responsibility?

Are Companies At Fault? Or Is It The lack Of Personal Responsibility? How does one become fat? Is it the lack of responsibility of one's actions to make healthy food choices, the lack of knowledge to know if something is healthy or unhealthy for your body, or television hypnotizing the viewer into buying an unhealthy product? According to surgeon general, obesity has become a health epidemic that needs to be controlled and prevented. Almost a third of America's population is obese and growing. Obesity is also now a wide spread topic that has caught the attention of journalists and health activists.Writers all over America have an opinion on the obesity epidemic such as Radley Balko who wrote the article â€Å"What You Eat Is Your Business. † Is obesity a medical condition or a consequence of a person's food choice? In Balko's article, he argues that the government is attempting to control what Americans consume and that obesity is caused by poor food choices. He tells us that the government is removing junk food and sodas from school vending machines, wanting more labeling (such as warning labels), and restricting food marketing to children. In other words, bringing government between your waist line† (158). Balko speaks the government is fighting obesity the wrong way by removal of the vending machine snacks, taxing more on higher calorie foods, and having restaurants send their food creations into a nutritional lab to be tested. He thinks the right way to defeat and handle obesity is to give the people a choice to want to be obese or improve your physical self. â€Å"†¦ Government ought to be working to foster a sense of responsibility in and ownership of one's own health and well-being† (158).Balko tells us that â€Å"the best way to alleviate the obesity public health crisis is to remove obesity from the realm of public health† (159). Balko thinks that Americans need to be able to choose healthy on their own without the gover nment's interference. If America is educated about food health, the better choice can be made. It is up to the individual to choose a salad or a home cooked meal over a Big Mac. People are smart enough to know what to put into their bodies. Another writer who wrote about obesity is John H. Banzhaf who's article is opposite of Balko's views.Banzhaf, the man who wields the law as a weapon against fast food companies. Banzhaf wants congress to figure out a solution for the obesity crisis and he is disappointed that congress is supporting a bill that gives fast food companies immunity from all liability. he does not think that obesity is caused by the lack of personal responsibility, he explains that the â€Å"rise of obesity and obesity related diseases occurred largely within the past 15-20 years, and there is no evidence that there has been a corresponding drop in and/or parental responsibility† (163).He thinks that if law suits against tobacco companies are effective, he can have the same effectiveness against the fast food industry. According to Banzhaf, fast food industries should be held liable for its key role in the ascension of obesity. His thoughts on what congress should do to help go against obesity before thinking about giving fast food industries immunity is to â€Å"A. have the fast food industries display information about calories and fat in their menus†¦ , B. e required that all fast food restaurants provide appropriate warning about the danger of eating fattening foods too often, C. require that all fast food restaurants provide more nutritious alternative menu†¦ , and require that all food item intended for children – provide fat and calorie content†¦ † (165-166). Banzhaf's article disagrees with Balko's argument because Banzhaf points most of the blame for obesity toward fast food and is arguing that it is not lack of responsibility, but the lack of nutritional knowledge and availability of healthy food.He wants the FFR to be liable for the contribution in the obesity epidemic and for not well informing their customers properly about the content of their food. Yves Engler would agree with Banzhaf with his article â€Å"Obesity: Much of the Responsibility Lies with Corporations. † Engler begins with his article with statistics of why obesity s now a large health crisis such as claiming that almost a third of the U. S. population obese and that the rate of obesity has doubled within 13 years.He found link through researchers that obesity is connected to 30 other medical conditions and he learned that the epidemic is costing billions of dollars to treat obesity related conditions, and people are putting more faith into weight loss drugs and surgery, rather than naturally losing weight through exercise. He has discovered that FFR are more available in walking distance from a home than supermarkets. â€Å"Poor areas often have had an even higher exposure to FFR and fewer super mark ets†¦ † (174). In Englers studies, fast food products are consumed in greater quantities (175).The amount food you receive has increased into bigger portions and according to angler people consume 30 percent more since 1983. Companies spend billions of dollars to advertise their products and their main target are children. Engler says that animated characters and toy gain the attention of children, thus making the children have their parents come in and eat at the restaurant. â€Å"Companies use cartoon characters, toys, and other items to have powerful influence over children† (175). The soda companies invaded schools to gain profit children.Engler's argument is that companies are relentless in selling their unhealthy products and succeeding in their sales. With the company's success leads to an obese America. Engler can connect with Balko's article because children/teenagers/adults need to take responsibility in their food and drink choices and consume in moderat ion of the unhealthy choices. Engler also connects well with Banzhaf because Banzhaf is going against the FFR, the same as Engler is and that fast food is a key factor for the cause of obesity.Cathy Arnst has a different view on the subject on is obesity caused by a lack pr personal responsibility or is it the food we eat. Cathy Arnst does not think that obesity is caused by our lack or personal responsibility in what we eat. She emphasizes that the foods we eat have more calories than what they used to be in the past. â€Å"Two new studies conclude that the food industry is following the tobacco industry’s play book to ensure that we keep loading up on calories, and as a result virtually all of the weight gain in the U. S. ver the last 30 years can be attributed to eating more, not moving less† (01). She say that having no physical activity plays no role in why we have an obesity epidemic. People today just eat more than what we used to in the past. Cathy can relate t o Banzhaf and Engler because the problem is the food that’s available. So like what Banzhaf was saying, there should be an alternative healthy menu. Finally, who really is at fault for causing the obesity epidemic? All writers have made good points on why this happened and good ideas of actions we should make.People are at fault for the food choices they eat and corporations are at fault for selling high calorie foods that cause fat tissue to grow. Also corporation irresponsibility for targeting children mainly for buying their products through their advertisements because they are teaching a generation to buy unhealthy foods and saying it’s ok. If this Epidemic is to ever be solved, instead of pointing what is causing it, make choices as an individual to make the next day healthier for yourself because every adult is responsible for their own well being.

How Two Incredibly Innovative Behavior Theorists During...

Amanda Blom EDS 6123 - Educational Practices I Dr. Barbara Murray 20 November 2014 Supervision Research Paper Two incredibly innovative behavior theorists during their time were, John B. Watson, and B. F. Skinner. The spark of the behaviorism movement began after Watson published the classic article Psychology as the behaviorist views it in 1913 (McLeod, 2004). John B. Watson’s prestigious career began in 1903 when he learned his doctorate degree in psychology with a minor in philosophy. Soon after Watson was hired as an instructor at the same place he earned his doctorate degree, the University of Chicago (Watson, 1999). A mere year later, Watson was hired as an associate professor of psychology at John Hopkins University. During his time at John Hopkins University, Watson became known as the Founder of Behaviorism (Watson, 1999). In 1915, after a number of lectures, articles, and research conducted, Watson became the President of the American Psychological Association (Watson, 1999). John B. Watson coined the term â€Å"behaviorism†, or the scientific study of human behavior . Behaviorism is also referred to as behavioral psychology. Behaviorism is a theory of learning based upon the idea that all behaviors are acquired through conditioning, which occurs through interaction with the environment. In addition, Watson proposed the process of classical conditioning, based on Pavlov’s observations, had the ability to explain everything regarding human psychology (McLeod, 2004).Show MoreRelatedOrganisational Theory230255 Words   |  922 Pages. Organization Theory Challenges and Perspectives John McAuley, Joanne Duberley and Phil Johnson . This book is, to my knowledge, the most comprehensive and reliable guide to organisational theory currently available. What is needed is a text that will give a good idea of the breadth and complexity of this important subject, and this is precisely what McAuley, Duberley and Johnson have provided. They have done some sterling service in bringing together the very diverse strands of workRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesOrganizational Behavior This page intentionally left blank Organizational Behavior EDITION 15 Stephen P. Robbins —San Diego State University Timothy A. Judge —University of Notre Dame i3iEi35Bj! Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montreal Toronto Delhi Mexico City Sao Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo Editorial Director: Sally Yagan Director of Editorial Services:Read MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesManagement Course: MBA−10 General Management California College for Health Sciences MBA Program McGraw-Hill/Irwin abc McGraw−Hill Primis ISBN: 0−390−58539−4 Text: Effective Behavior in Organizations, Seventh Edition Cohen Harvard Business Review Finance Articles The Power of Management Capital Feigenbaum−Feigenbaum International Management, Sixth Edition Hodgetts−Luthans−Doh Contemporary Management, Fourth Edition Jones−George Driving Shareholder Value Morin−Jarrell LeadershipRead MoreStrategy Safari by Mintzberg71628 Words   |  287 Pagespractitioners, while others may be more of interest to the academically inclined. This is in the nature of the beast. We did not set out to domesticate it but to make it friendly. We wanted readers from everywhere to join our safari. But at the same time we want to challenge you. We take risks and hope that they will invigorate you. For as we argue throughout, the field of strategic management needs to be opened up, not closed down; it needs reconciliation among its many different tendencies, not theRead MoreFundamentals of Hrm263904 Words   |  1056 Pagesresources With WileyPLUS: Students achieve concept mastery in a rich, structured environment that’s available 24/7 Instructors personalize and manage their course more effectively with assessment, assignments, grade tracking, and more manage time better study smarter save money From multiple study paths, to self-assessment, to a wealth of interactive visual and audio resources, WileyPLUS gives you everything you need to personalize the teaching and learning experience.  » F i n d o u tRead MoreManaging Information Technology (7th Edition)239873 Words   |  960 PagesData Governance at InsuraCorp CASE STUDY I-6 H.H. Gregg’s Appliances, Inc.: Deciding on a New Information Technology Platform CASE STUDY I-7 Midsouth Chamber of Commerce (B): Cleaning Up an Information Systems Debacle CASE STUDY II-1 Vendor-Managed Inventory at NIBCO CASE STUDY II-2 Real-Time Business Intelligence at Continental Airlines CASE STUDY II-3 Norfolk Southern Railway: The Business Intelligence Journey CASE STUDY II-4 Mining Data to Increase State Tax