What type of tax is the tourism accommodation tax categorized as?

The tourism accommodation tax is categorized as a consumption tax because it is levied on the consumption of services related to tourism, specifically on lodging and accommodations. This type of tax is designed to be paid by visitors who are using tourism-related services, thereby generating revenue that can be reinvested into the local economy and infrastructure that supports tourism.

Consumption taxes are typically applied based on the expenditure made by consumers rather than being tied directly to income or property ownership. In the case of the Cayman Islands, the tourism accommodation tax specifically targets those who utilize accommodations, and thus it fits neatly within the definition of a consumption tax. The other options, such as value-added tax, sales tax, and property tax, refer to different types of taxation that do not apply directly to the service of temporary lodging used by tourists.