Kennebunk, ME¾ Most travelers planning to stay overnight in New England in the next year say they are not likely to change their plans if a state were to hike up its lodging tax even as much as two percent (2%). These results come from a regional survey of 336 members of an online consumer panel.

Davidson-Peterson Associates’ (DPA) online poll asked respondents if they would either shorten or cancel their trip, if the state they plan to visit increased its lodging tax rate. 92% were not "very likely" to change their travel plans (shorten and/or cancel their trip). Only 8% were "very likely" to change their travel plans. There were no significant differences among three tax rates used—½%, 1%, or 2%.

Karen Peterson, managing director of Davidson-Peterson Associates, says, "Although some report that they would shorten or cancel their trip, it’s interesting to note that just two percent (2%) of our panelists were aware of the correct tax rate in the New England state they had visited in the past 12 months. Our survey gives respondents full disclosure of a tax increase – something that is unlikely to happen in the real world. Our study suggests that most travelers will probably be unaware of any tax increase."

The results of this study are based on 336 online surveys completed by members of Digital Research, Inc.’s Consumer Technology Panel™ between March 9 – 18, 2001.

Twenty-four hundred panel members living in the northeast (CT, ME, MA, NH, NJ, NY, PA, RI, or VT) were invited to participate in a brief questionnaire to determine if they qualified to participate in this study. A total of 867 panel members completed the screening questionnaire between February 9 - 20, 2001. From this sample, 493 qualified for the survey by satisfying one or both of the following criteria: The respondent had taken a trip in the last 12 months to one or more of the New England states (CT, ME, MA, NH, RI, and VT), or the respondent planned to take a trip in the next 12 months to one or more of the same states.

An email was sent on February 9 inviting the 493 qualified panel members to participate in the study. Three hundred and thirty six (336) responded to the invite and completed the questionnaire for a response rate of 68%. A sample of 336 is considered to be accurate to plus or minus 5.3 percentage points at the 95% confidence level.