The Effectiveness And Contribution Of Hotel And Restaurant Taxes To Increasing Locally Generated Revenue In Medan City

This study aims to examine the effectiveness and contribution of hotel and restaurant taxes in increasing Medan City's local revenue. This study used a quantitative descriptive method. The observation period was 2021-2025. The results indicate that the effectiveness of hotel and restaurant taxes tended to increase during the 2021-2025 period, indicating that the Medan City Government has successfully optimized local tax management as a source of local revenue (PAD). Restaurant taxes have a greater contribution than hotel taxes in increasing Medan City's PAD. The average contribution of restaurant taxes reached 11.49 percent, while hotel taxes only contributed 3.88 percent. Thus, the contribution of restaurant taxes is almost three times greater than that of hotel taxes. In general, the effectiveness of Medan City's local taxes is still in the moderate to ineffective category, indicating that the local government still needs to improve tax collection optimization to consistently achieve targets.