Fairmas Hotel Report September 2015

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Fairmas Hotel Report September 2015

September 7, 2015, In Fairmas hotel report

In focus: Reduction in VAT on overnight stays: Deceptive packaging or an engine for growth?

Summer is over and we’re back from the break with an exciting topic:

More than five years have passed since Germany’s liberal-conservative government presented the hotel industry with a “tax gift” in the form of the Growth Acceleration Act. For a long time now, the reduction in VAT on overnight stays has been accompanied by a polemic discussion about the sense (and nonsense) of the decision.

Now, a few years later, we (together the AHGZ, a newspaper for the German hospitality industry) are looking into the question of just what this cut in VAT has achieved. In a unique study, we investigate whether the reduction in value-added tax for hotel stays has actually made up for hoteliers’ previous losses in terms of room rates and RevPar caused by the 2009 financial crisis. After all, the tax cut did mean an increase in the net room rates.

Besides this, we look back at August in the major destinations and, as usual, present our view of how the next three months will look.

Enjoy our Hotel Report and have an interesting read.

Download Hotel Report September 2015