Charges
The distinction between charge and taxes is not always clear and they are occasionally considered together, suggesting that they have similar characteristics. Charges can be applied to emission of pollutants, supply of products or service and consumers’ use of environmental facilities and so are relevant to both the supply and demand side of tourism. Charges can raise prices to consumers and almost certainly increase producers’ cost, and to this extent have the same effect as taxes. However, there is a technical difference in that economists perceive charges as being levied to deter specific activities or the use of environmentally harmful products or to meet the full cost of output and/or services and facilities. Taxes, on the other hand, are conceive as meeting identified levels of consumption or production, especially in relation to maximizing net social benefits or (minimizing net social costs) by attaining an economic optimum see figure 10.2). The distinction can best be explained by illustrating briefly the various forms of charges. In the first two, the charge is essentially a selective indirect tax, but unless related directly to the environmental costs generated by the product, is not designed to affect consumption or production to achieve a social optimum.