TAXATION REGIME AND POLITICAL CLIMATE ON PERFORMANCE OF FIRMS IN THE TOURISM SECTOR:

Abstract

This paper investigated the impact of taxation regime and political climate—on performance of tours and travel firms. The descriptive survey design was employed targeting 147 management-level staff from 49 firms, with a representative sample of 108 respondents obtained through stratified random sampling and Yamane's formula. Data analysis involved both descriptive and inferential statistics, including means, percentages, ranges, standard deviations, correlation coefficients, and frequencies. The qualitative data was analyzed using SPSS (Version 22) and content analysis. The findings showed that the taxation regime had the highest positive correlation with firm performance (r = 0.753), highlighting its significant influence on operational efficiency and financial outcomes. The political climate also significantly affected performance (B = 0.068, p = 0.040), influencing operational continuity and market confidence. The multiple regression model explained 62.99% of the variance in firm performance. Recommendations include optimizing tax policies and maintaining political stability. More research should consider longitudinal studies especially on long-term impacts and compare effects across various industries.