Question

Q) How will carbon tax affect the tourism industry in Canada. Please elaborate your answer.

Can you please answer this question in detail.

Answer 1

Carbon tax will induce old age vehicle which have higher emissions to clear off from market and simultaneously the state government will give incentives to pubkic transport with alternative mechanism like electricity which is more sustainable in long run and cost effective.

This will cause migration to public vehicles and hence tourism industries will get affected as tourists prefer personal travel more than pubkic travel and hence overall customer experience and satisfaction rate will be lower.

Taking off road old vehicles with high carbon emission will create supply glut and make tourists less satisfied and drastically impact overall revenues.

Moreover this will create additional hiccups to state government revenues as tiurism drops and most importantly the tourism will see substandard experience.