Examining Tourists’ Awareness of Tax and Contribution Payments for Accommodations

Abstract

In regions that have introduced additional taxes and contributions to promote tourism, efforts are being made to clarify the existence and purpose of these taxes among tourists, who serve as the primary taxpayers. Although such measures have the potential to decrease the loyalty of certain tourists to a given destination, no research has examined this concern. This study focused on the bathing tax, a mandatory fee collected from hot spring users, and conducted a survey to assess tourists' awareness of tax oblivion and clarity based on their willingness to pay （WTP）. The results revealed that, regardless of their WTP, respondents were largely unaware of the amount and purpose of the bathing tax. This indicates that the tax is perceived as obscure. Among those with low WTP, being notified about the bathing tax and its purpose in the regions they visited tends to lower their loyalty to those destinations. This study also found that collecting the bathing tax separately from accommodation fees at checkout tends to lower loyalty among visitors with low WTP. These findings suggest that common efforts used to increase tourists' understanding may inadvertently create discomfort and reduce loyalty. Therefore, it is important to reassess these efforts.