Recent developments in Paris have drawn attention to a new increase in the accommodation tax following previous increases, prompting strong criticism from many in the travel industry, including the ETOA.
Several prominent voices in the European travel industry have raised concerns over the recent hike in the accommodation tax levied on visitors to Paris. The increase, implemented by city authorities, has sparked a lively debate within the travel community, with ETOA expressing dismay over the potential impact on both tourists and businesses.
The accommodation tax was increased per traveller per night between 3.32 and 7 euros depending on the booking. This was imposed from the first of January without warning to the travellers or the businesses booking the holidays. This is roughly a 10% increase in accommodation tax from 2023 after previous tax increases had already been put in place.
Etoa expressed huge concerns over the increase, saying, “The surcharge is an opportunistic raid on visitors to subsidise regional infrastructure and takes no account of the impact on operators and suppliers. The lack of notice is unprecedented. We are engaging with local authorities as a matter of urgency.”
Members were told, “Unless the law is reversed, suspended pending review, or a grace period is introduced, the tax is due if the stay begins in 2024, irrespective of the date the booking was made.
“If full payment was made before the end of 2023 there may be a contractual basis to pay no more.
“Cancellation aside, the options are either to absorb the cost, pass on the cost to the client, or require the end consumer to pay on the spot. B2B renegotiation is inevitable, with low-margin businesses particularly vulnerable.
“Etoa had no notice of this exceptional move and is grateful to members who brought the issue to our attention. This is a bad start to the Olympic year.”
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