Germany Cuts Hotel VAT to Encourage Travel

by Alfie FEATHERSTONE on November 23, 2009

The world economy has plummeted over the last year which has had devastating effects on businesses all over the world.  The travel and tourism industry has been one hit hardest by the economy which has led to companies looking for interesting deals, promotions, and schemes that will boost profits.  Car hire agencies have reduced their fleets, while hotels, which are experiencing historically low occupancy rates, have done everything from cut amenities to trimming down their staffs in an effort to save money.  Some governments have decided to step in to help the ailing hotel industry by reducing some of the fees related to running a hotel.  Travelers heading to Germany many soon find that their hotel rates are little less than expected thanks to actions taken by the German government.

Starting at the beginning of 2010 travelers to Germany will find their hotel rates slashed thanks to efforts by the German government to help the flailing industry.  The VAT rate at hotels will be cut by almost half starting on January 1st as Germany looks to boost the hotel industry and encourage more corporate travel to Germany.  German hotels have suffered as much or more than their counterparts in Europe.  German hotels over the last year have had occupancy rates of just under fifty eight percent, which were some of the lowest in all of Europe.

The German government hopes that the reduction in value added tax will not only encourage more visitors but that they will be able to stay longer.

Comments on this entry are closed.

Previous post: Hilton Given Carbon Trust Standard

Next post: KFC Plans to Come to Burnley