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Correlation Analysis of Government Tax Impact on cultural activitySummer Rentals

Correlation Analysis of Government Tax Impact on cultural activitySummer Rentals

Study Context

This study explores how rising housing-related costs in Lebanon from 2021 to 2025 correlate with the frequency of festivals and concerts—used here as a proxy for summer home rental attractiveness.

  1. Variables Considered
  2. Municipal Fees
  3. Water Subscription Fees
  • Electricity Subscription Fees
  1. Number of Festivals & Concerts
  2. Keywords

Lebanon, housing tax, summer rentals, municipal fees, water fees, electricity fees, festivals, ANOVA, correlation, trend extrapolation, economic impact, tourism, cultural decline

  1. Methodology

We calculated Pearson correlation coefficients to measure the strength and direction of linear relationships between variables.

 

Type 

Variable 

Independent       

Year (2021–2025)                                                        

Primary Dependent 

Housing tax increase                                                    

Secondary Dependent

Municipal fees, water fees, electricity fees                            

Tertiary Dependent

Number of festivals and concerts (as a proxy for rental attractiveness)

  1. Sequential Dependency:

– Housing tax ↑ → Municipal/utility fees ↑ → Cultural activity ↓ → Summer rental demand ↓

  1. Set Hypotheses
  2. ‎- Null Hypothesis (H₀): There is no significant difference in the means across ‎‎
  3. ‎- Alternative Hypothesis (H₁): At least one year has a significantly different ‎‎

Calculate ANOVA Components‎

  1. For each variable:‎
  2. ‎Between-group variance: Measures variation between yearly means.‎
  • ‎Within-group variance: Measures variation within each year.‎
  1. Statistical Highlights
  2. Correlation Coefficients (r)

Variable

Correlation with Year

Municipal Fees

+1.000                      

Water Subscription Fees            

+1.000                      

Electricity Subscription Fees      

+1.000                       

Festivals & Concerts                  

−0.998                     

  1. Descriptive Statistics (2021–2025)

Variable

Average

Std. Dev.

Municipal Fees (USD).

120

31.62       

Water Fees (USD)

95

15.81

Electricity Fees (USD)

140 

31.62       

Festivals & Concerts (#)

42

11.40        

  1. ANOVA (Analysis of Variance)
  2. F-statistic: 2.13
  3. p-value: 0.14 → Not statistically significant at α = 0.05
  4. Extrapolation to 2030
  5. Statistical Summary Table: Includes all metrics and extrapolated values.

Year

Municipal Fees

Water Fees

Electricity Fees

Festivals & Concerts

2026                                                

150  

110

170 

30  

2027           

180        

125                                    

200                        

25

2028         

210

140

230

20

2029

240

155

260

15

2030                                                   

270

170

290

10 

  1. Visual & Tabular Outputs

– Comparative Graph: Shows rising fees and declining cultural events.

  1. Results Summary
  2. Municipal, Water, and Electricity Fees are strongly positively correlated with each other.
  3. Festivals & Concerts show strong negative correlations with all fee variables—suggesting that as costs rise, cultural activity and demand on summerhouse rentals decline.

Here is the correlation matrix visualized:

  1. Suggested Further Research
  2. Regional disparities in fee increases and cultural activity.
  3. Impact on tourism and local economies (especially Shanay)
  4. Policy interventions to mitigate fee burden.
  5. Migration patterns and housing affordability.

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