Forget taxes on hotel guests

By | Category: Travel rumblings

Paris-1Plans by the French government to increase tourism taxes on hotel guests will have a detrimental effect on the long-term economic growth of France’s Travel & Tourism industry and must be scrapped, according to the World Travel & Tourism Council (WTTC).

“Research shows that direct increases in taxes on tourists have the effect of deterring travel and reducing overall taxation income” says the WTTC. They claim that the French government plans to increase the tourism tax by up to 433%.
Would it stop or deter you from going to France?

Compared to some US hotel charges, France seems cheap. Compared to us where we don’t have such taxes it seems pricey. What the French government will be relying on is the fact that France is unlike other countries in many ways and certainly there is nowhere like Paris so people will go regardless of taxes – within reason. And since France – well Paris certainly – is regarded as one of the most expensive holiday destinations, would visitors notice the additional charges?

The taxation proposal comes on the back of a rise in hotel VAT in France from 7% to 10% at the beginning of this year.  The WTTC argues that the French Government is getting its priorities completely wrong. “It is completely the wrong way of going about stimulating demand.” They say, “We urge the French Government to reconsider and urgently reverse the recent rise in hotel VAT and drop this latest proposal”.

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