This research was an attempt to find out (1) the potential for hotel taxes, and (2) efficiency and effectiveness levels of hotel tax revenues in Palembang in the period of 2001 -2010. The research results show that the total potential for hotel tax revenues in Palembang amount to Rps 1 i I ,boofd(36.0O, and an estimated size of 83*% could'ire realized. The effectiveness level in the past ten ye…