Sales tax threatens California’s travel industry


California’s travel, tourism and hospitality industry may be adversely impacted by the proposed expansion of a sales tax to include professional services.

The tax could impact service industries, including travel, said president and CEO of the California Travel Industry Association (CalTIA), John Severini, in a report.

“If this gains momentum it may well prove disastrous for travel jobs and revenues generated in the state,” he said.

Mr Severini estimates that the state faces a USD$17 billion budget shortfall and is looking for new revenues.

“This also could impact consultants and service providers who charge service fees including, attorneys, accountants and possibly the travel agency side of the business,” he said.

Mr Severini said he wanted to alert the industry to the potential challenge the tax could impose to the travel, tourism and hospitality industry in the state and outside of California.

“These may be rumblings but rumblings with consequences,” he said, adding that he estimated that one million jobs in the state are travel, tourism and hospitality related.

Source = e-Travel Blackboard: C.C
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