French hotels face 500% tax hike

30 June 2014 by
French hotels face 500% tax hike

French hotels could soon see an increase of up to 500% in hotel taxes, despite efforts by government ministers in the country to get the move overturned.

Proposals by lawmakers in France's draft budget would see maximum hotel taxes raised to €8 (£6.45) per stay, up from the current level of €1.5, according to Reuters.

The move would bring French hotels more into line with other European cities including Berlin, Rome, and Brussels.

However French ministers argued that the move could undermine plans to boost the tourism sector. The tourism sector accounts for more than 7% of the country's gross domestic product.

Sebastien Bazin, chief executive of Europe's largest hotel group Accor, told Journal du Dimanche weekly the new taxes would severely cut hotel margins and penalise tourism.

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