TUI protests at tax plans

[fifi]

TUI protests at tax plans

Europe's largest tourism group is calling on the Spanish government to drop plans for higher hotel taxes which it warns could hit visitor figures.


TUI chairman Michael Frenzel, who is also chairman of the World Travel & Tourism Council, has officially appealed to Spanish tourism minister José Manuel Soria to prevent an increase in the VAT rate for hotels.

The Spanish government, under pressure from international financial institutions due to the country's economic crisis, plans to end various tax exemptions and to hike the current discounted rate of 8% for hotel accommodation to the full rate of 18%.

But Frenzel warned that such a price increase could lead to the loss of "millions of visitors" in view of Spain's mass tourism market. Holidaymakers put priority on good value for money and might switch to other destinations if such a price increase was introduced, he told the minister. Frenzel also highlighted the positive impact of Germany's lower VAT rate on hotel accommodation for jobs in the sector.

Soria told Spanish media that no decisions had yet been taken and he appreciated how sensitive tourists were to higher prices.

Meanwhile, Spain has also introduced higher charges at airports, including substantial rises at Madrid and Barcelona airports. These increases could lead to airlines having to increase ticket prices by €10, according to reports.

Air Berlin, which operates a major hub on Majorca, has warned it might take legal action against the government's measures on the grounds that airport charges cannot be increased without consultation and certain deadlines have to be met.

[woe10]

TUI need to get their own house in order.  They are ripping people off by charging €21.00 credit card charge on TUIFLY, to germany.