Optimizing Local Tax Revenue from the Hospitality Sector: A Qualitative Study in North Toraja Regency

This study analyzes the factors influencing the optimization of hotel and restaurant tax revenues in North Toraja Regency between 2019 and 2023. The mismatch between tax targets and actual revenues, particularly the underperformance of hotel taxes, contrasted with the robust growth of restaurant taxes, prompted this research. Using a qualitative descriptive method, the study relies on interviews, observation, and documentation, triangulated for validity. The results reveal that the COVID-19 pandemic, low occupancy rates, and limited taxpayer compliance hinder hotel tax collection. Conversely, restaurant tax revenues improved due to economic recovery, stronger enforcement, and increased consumption. Key factors affecting optimization include economic conditions, taxpayer awareness, policy effectiveness, service quality, and the use of digital technologies such as MPOS (Mobile Point of Sales). The study concludes that digitalization, human resource improvement, taxpayer education, and inter-agency coordination are essential strategies for optimizing tax revenues in tourism-driven local economies.