Impact Analysis of VAT Increase on Accommodation: Results and Implications for the Hospitality Sector

• The letter is addressed to the Chair of the Senate of the States General.
• It discusses the impact analysis of a VAT increase on lodging.
• The analysis was conducted by an independent research agency, Significant APE.
• The analysis shows that small price increases may not significantly reduce overnight stays.
• Consumers are price-sensitive to VAT-induced price increases.
• The actual effect may be smaller as respondents might overestimate their behavior change.
• A decrease in demand could lead to reduced revenue for hotels and holiday parks.
• Budget accommodations are more price-sensitive than luxury ones.
• The government acknowledges the impact of removing a reduced VAT rate.
• The analysis suggests the reduced VAT rate is not an effective tool to increase consumption of merit goods.
• The government will use the freed resources for purchasing power measures.
• The analysis does not lead to reconsideration of the VAT measure.
• The actual effects will be monitored starting next year using the data and methods from this research.
• The letter is signed by the Secretary of State for Finance, T. van Oostenbruggen.

Source: open.overheid.nl

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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