France hotel VAT hike a ‘catastrophe’
demand, shutter businesses and cost thousands of jobs, hoteliers say.
That is how Francois Delahaye, COO for Dorchester Collection and GM of the palatial Hôtel PlazaAthénée, sums up the reasons behind the spiraling value-added tax rates for French hotels. From 1 January, VAT on French hotels rose from 7% to 10%—a move that many consider surprising for a country that in 2011 had one of the lowest rates of VAT on hotels at 5.5%.
“The previous (conservative) government reduced the VAT,” Delahaye said. “We asked Jacques Boreland his VAT Club to lobby for us in Paris, Brussels and London. Despite that we lost.
“It is a catastrophe and very bad for employment,” he said.