Effectiveness of Hotel Tax Collection

Oct 13, 2025 by talynt.org 98 views

Analysis of the Effectiveness and Contribution of Hotel Tax Revenue to Regional Tax Revenue and Regional Original Revenue in Medan City in 2018-2022

Introduction

Tax is one of the vital sources of income for governments, both central and regional. In Indonesia, taxes are divided into two categories: Central Tax and Regional Taxes. Central Tax, which is managed by the Central Government, includes Income Tax (PPh) and Value Added Tax (VAT). Meanwhile, local taxes are one of the important components of Regional Original Revenue (PAD), which plays a crucial role in supporting regional development. In Medan, Hotel Tax is one of the taxes imposed by the city government. This study aims to analyze the effectiveness of hotel tax collection in Medan during 2018-2022, as well as explain the contribution of hotel taxes to local taxes and Medan City PAD in the same period.

Background of the Study

The purpose of this study was to analyze the effectiveness of hotel tax collection in Medan during 2018-2022, as well as explain the contribution of hotel taxes to local taxes and Medan City PAD in the same period. In addition, this research also aims to identify obstacles in hotel tax collection and efforts made by the Medan City Government to overcome this problem. The method used in this study is descriptive qualitative, by collecting data through interviews and collecting secondary data from the Medan City Regional Revenue Service. Through interviews with regional revenue service staff, the information obtained provides a clear picture of the situation and challenges in hotel tax collection.

Effectiveness of Hotel Tax Collection

The results showed that the level of effectiveness of hotel tax collection in Medan tends to fluctuate from year to year between 2018 to 2022. One of the main causes of this instability is the impact of Pandemi Covid-19 which results in a decrease in the number of hotel visitors. With the reduction in hotel occupancy, it will automatically affect hotel tax revenue, which in turn has an impact on regional income. The impact of the pandemic has resulted in a significant decline in hotel tax revenue, which has had a ripple effect on the regional economy.

Hotel Tax Contribution to Regional Revenues

Although hotel taxes contribute to local taxes, the level of contribution also experiences variations. In the 2018-2022 period, hotel tax contributions to Medan City Regional Tax were observed to decline, especially in years where the impact of Pandemic was significantly felt. This decline also has implications for the amount of PAD obtained by the city government, so that it has an impact on the ability of the city in running development programs. The decline in hotel tax contributions has resulted in a significant reduction in the amount of PAD obtained by the city government, which has had a negative impact on the city's ability to fund development programs.

Obstacles in Tax Collection

This study identified several obstacles in hotel tax collection, including the lack of awareness of hotel business actors regarding tax obligations and external factors such as pandemics that hamper the level of hotel occupancy. This shows that there is still space to increase socialization and understanding of the importance of hotel tax for regional development. The lack of awareness of hotel business actors regarding tax obligations has resulted in a significant decline in hotel tax revenue, which has had a negative impact on the regional economy.

Efforts to the Medan City Government

The Medan City Government has made several efforts to overcome obstacles in hotel tax collection. Among these are increasing socialization and education to hotel entrepreneurs regarding the importance of taxes and benefits obtained from the tax for the wider community. In addition, the city government also conducts more stringent monitoring of the compliance of business actors in fulfilling tax obligations. The Medan City Government has also implemented various initiatives to increase awareness of the importance of hotel tax and to improve the compliance of business actors in fulfilling tax obligations.

Conclusion

Overall, the effectiveness and contribution of hotel tax revenue to local taxes and PAD in Medan experienced significant fluctuations between 2018-2022. This is influenced by various factors, especially the impact of Pandemi Covid-19. In the future, an increase in awareness of the importance of hotel tax and handling of existing obstacles is the key to increasing the effectiveness of tax collection and its contribution to regional development. The Medan City Government needs to continue to innovate and collaborate with stakeholders so that hotel taxes can have a greater positive impact on the community.

Recommendations

Based on the findings of this study, the following recommendations are made:

The Medan City Government should continue to increase socialization and education to hotel entrepreneurs regarding the importance of taxes and benefits obtained from the tax for the wider community.
The city government should conduct more stringent monitoring of the compliance of business actors in fulfilling tax obligations.
The Medan City Government should implement various initiatives to increase awareness of the importance of hotel tax and to improve the compliance of business actors in fulfilling tax obligations.
The city government should collaborate with stakeholders to increase the effectiveness of tax collection and its contribution to regional development.

Limitations of the Study

This study has several limitations, including:

The study only analyzed the effectiveness and contribution of hotel tax revenue to local taxes and PAD in Medan during 2018-2022.
The study only collected data from the Medan City Regional Revenue Service and did not collect data from other sources.
The study only identified several obstacles in hotel tax collection and did not provide a comprehensive analysis of the obstacles.

Future Research Directions

Future research should focus on the following areas:

Analyzing the effectiveness and contribution of hotel tax revenue to local taxes and PAD in other cities in Indonesia.
Identifying the obstacles in hotel tax collection in other cities in Indonesia and analyzing the impact of these obstacles on the regional economy.
Evaluating the effectiveness of the initiatives implemented by the Medan City Government to increase awareness of the importance of hotel tax and to improve the compliance of business actors in fulfilling tax obligations.

References

BPS (2022). Statistik Medan 2022.
Kementerian Keuangan (2022). Laporan Keuangan Pemerintah Daerah 2022.
Medan City Government (2022). Laporan Keuangan Pemerintah Kota Medan 2022.

Appendices

List of interviewees.
Interview protocol.
Data collection instrument.
Data analysis procedure.
Frequently Asked Questions (FAQs) about the Analysis of the Effectiveness and Contribution of Hotel Tax Revenue to Regional Tax Revenue and Regional Original Revenue in Medan City in 2018-2022

Q: What is the purpose of this study?

A: The purpose of this study is to analyze the effectiveness of hotel tax collection in Medan during 2018-2022, as well as explain the contribution of hotel taxes to local taxes and Medan City PAD in the same period.

Q: What method was used in this study?

A: The method used in this study is descriptive qualitative, by collecting data through interviews and collecting secondary data from the Medan City Regional Revenue Service.

Q: What are the main causes of the instability in hotel tax collection in Medan?

A: One of the main causes of this instability is the impact of Pandemi Covid-19 which results in a decrease in the number of hotel visitors.

Q: What is the impact of the pandemic on hotel tax revenue?

A: The impact of the pandemic has resulted in a significant decline in hotel tax revenue, which has had a ripple effect on the regional economy.

Q: What are the obstacles in hotel tax collection in Medan?

A: This study identified several obstacles in hotel tax collection, including the lack of awareness of hotel business actors regarding tax obligations and external factors such as pandemics that hamper the level of hotel occupancy.

Q: What are the efforts made by the Medan City Government to overcome obstacles in hotel tax collection?

A: The Medan City Government has made several efforts to overcome obstacles in hotel tax collection, including increasing socialization and education to hotel entrepreneurs regarding the importance of taxes and benefits obtained from the tax for the wider community.

Q: What are the recommendations made by this study?

A: Based on the findings of this study, the following recommendations are made:

The Medan City Government should continue to increase socialization and education to hotel entrepreneurs regarding the importance of taxes and benefits obtained from the tax for the wider community.
The city government should conduct more stringent monitoring of the compliance of business actors in fulfilling tax obligations.
The Medan City Government should implement various initiatives to increase awareness of the importance of hotel tax and to improve the compliance of business actors in fulfilling tax obligations.
The city government should collaborate with stakeholders to increase the effectiveness of tax collection and its contribution to regional development.

Q: What are the limitations of this study?

A: This study has several limitations, including:

The study only analyzed the effectiveness and contribution of hotel tax revenue to local taxes and PAD in Medan during 2018-2022.
The study only collected data from the Medan City Regional Revenue Service and did not collect data from other sources.
The study only identified several obstacles in hotel tax collection and did not provide a comprehensive analysis of the obstacles.

Q: What are the future research directions?

A: Future research should focus on the following areas:

Analyzing the effectiveness and contribution of hotel tax revenue to local taxes and PAD in other cities in Indonesia.
Identifying the obstacles in hotel tax collection in other cities in Indonesia and analyzing the impact of these obstacles on the regional economy.
Evaluating the effectiveness of the initiatives implemented by the Medan City Government to increase awareness of the importance of hotel tax and to improve the compliance of business actors in fulfilling tax obligations.

Q: What are the references used in this study?

A: The references used in this study include:

BPS (2022). Statistik Medan 2022.
Kementerian Keuangan (2022). Laporan Keuangan Pemerintah Daerah 2022.
Medan City Government (2022). Laporan Keuangan Pemerintah Kota Medan 2022.

Q: What are the appendices of this study?

A: The appendices of this study include:

List of interviewees.
Interview protocol.
Data collection instrument.
Data analysis procedure.