Hotel Industry VAT in EU
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1 Hotel Industry VAT in EU Hotel VAT DK 25 LT 21 SK 20 HU 18 CZ 15 HR LV 12 SE 12 AVR 10 ES FR 10 IT 10 AT 10 FI 10 SI BG 9 EE 9 IE 9 CY 9 10 RO 9 PL 8 DE 7 MT 7 5 EL 7 BE 6 NL 6 PT 6 LU 3 0 UK 2 Hotel VAT 30% 70% DK LT SK HU CZ HR LV SE AVR ES FR IT AT FI SI BG EE IE CY RO PL DE MT EL BE NL PT LU UK
2 Demand and VAT of Accommodation variation No minus - minus Year VAT rates VAT variaton Demand variation , (-6), 1993, 25, +10 (+12), 1994, 10, -15, (+12), 2004, 15, +3, (+8)%, 2010, 18, -2, (+6),
3 VAT France 10 % Novotel Tour Eiffel 165 EU 3
4 VAT Czech 15% Novotel Praha 110 EU 4
5 VAT HU 18% Novotel Budapest 105 EU 5
6 VAT Luxembeurg 3% Novotel Centre 89 EU 6
7 VAT LT 24% Novotel Vilnius 120 EU VAT Price Lux 3% 89 HU 18% 105 CZ 15% 110 LT 21% 120 FR 10% 165 7
8 VAT rates Eu 8
9 VAT Rates and Big Mac prices 9 VAT Price FR 10% 5,56 Lux 3% 5,36 HU 27% 3,85 LT 24% 3,46 CZ 22% 3,45
10 TripIndex Cities 2013 Best Value International Cities: Destination Best value or the cheapest Pest Hotel Return taxi trip Cocktails for two Dinner for two Total cost 1 Hanoi, Vietnam $84.89 $4.95 $22.56 $28.71 $ Beijing, China $ $1.71 $23.63 $27.41 $ Bangkok, Thailand $81.13 $2.03 $9.45 $69.30 $ Budapest, Hungary $ $9.83 $36.12 $43.32 $ Kuala Lumpur, Malaysia $ $3.67 $19.68 $57.55 $ Warsaw, Poland $ $12.32 $12.03 $65.51 $ Taipei, Taiwan $ $3.70 $26.36 $31.81 $ Jakarta, 8 Indonesia $ $1.92 $20.00 $58.43 $ Sofia, Bulgaria $ $3.40 $40.86 $46.73 $ Tunis, Tunisia $ $5.23 $9.97 $50.27 $ Most Expensive International Cities next group 10 Avr Tot 188 Hot 113 Rest 48 Hanoi -25% -25% -40% BP +3% -7% -10% Tunis +15% +28% +4%
11 Demand and VAT of Accommodation variation No minus - minus Year VAT rates VAT variaton Demand variation , (-6), 1993, 25, +10 (+12), 1994, 10, -15, (+12), 2004, 15, +3, (+8)%, 2010, 18, -2, (+6),
12 Demand and the effects of TAX changes VAT Tax rate has no effect on the demand 12 VAT has no effect on the prices of the hotel Hotels Hotel prices are defined by tourist attraction (location) To reduced rate of VAT does not generate demand Hotel prices are not elastic in the context of changes in the prices there are no correlation with the evolution of the demand Hungary and Budapest tourist destinations has the one of the most cheapest price and occupancy additional price reduction has no effect on market Hungary since 1990 has a supply market To reduce the rate of VAT will increase the profitability level of the service provider in hotel industry
13 The effect of the VAT reduction 13 To reduce the rate of VAT will increase the profitability level of the service provider in hotel industry The sector's profitability increasing generates higher investment willingness (more hotels could be built) Hungary and Budapest Hotel occupancy level is one of the lowest level of world tourism To increase the supply is not target According to the Chief Executive Officer of Hunguest Hotels extra income will help to increase - Employee number - Wages - Operation and strategic investments - Capital expenditure
14 The effect of the VAT reduction 14 Hotels in Hungary, according to the guest's evaluation (booking.com, 2104 March) Quality 82% Comfort 81% Facilities 79% Hotels in Hungary need to improve and reach the Hotelstars EU standard quality, comfort and facilities It needs a development program The decreased VAT increase the profit of suppliers only until the new entrants are not enough strong
15 Hungarian Hotels Quality 86,0 Hungary 84,0 82,0 80,0 78,0 76,0 74,0 Loation Staff Cleaness QUALITY Price-value Comfort Facility Quality 82% Location +3 Price-value -1 Staff +2 Comfort -2 Cleaness +1 Facility -4
16 Accommodation, hotels and apartments in offer Budapest Bratislava Prague Wien Warsaw Total 16 accommodation hotels % * of hotels * of hotels * 5* of accommodation apartments Apartments share an intermediary offer lowest in Vienna 12% average in Budapest 23% highest in Warsaw 47% Hotels share an intermediary offer lowest in Warsaw 13% Budapest 16% highest in Bratislava 44% :03:32
17 Aims of Hungarian Hotel Industry To regulate the replacement products (other accommodation- apartments) To require Categorization (Hotelstars) To regulate the use of specialization brand name Spa, Boutique, Wellness To strengthen the Chamber Membership To enhance the skilled employees share (responsible person for operation) To decrease the Catering VAT To enhance competitiveness To support to reach the level of the Hotelstars Categories To access the training support for hotels :03:32
18 Hotel and Catering Industry VAT in EU Hotel VAT Restaurant VAT 1 DK 25 HU 27 1 LT 21 Hotel VAT DK 25 1 SK 20 RO 24 1 HU PT 23 1 CZ 15 SI 22 1 HR CZ 21 1 LV 12 LT SE 12 LV 21 AVR BG 20 1 ES 10 EE 20 1 FR 10 5 SK 20 1 IT 10 UK AT 10 DK LT SK HU CZ HR LV SE AVR ES FR IT AT FI SI BG EE IE CY RO PL DE MT EL BE NL PT LU UK DE 19 1 FI 10 MT 18 1 SI 10 AVR 16 1 BG 9 FI 14 Restaurant VAT 1 EE 9 EL 13 1 IE 9 HR 13 1 CY 9 25 BE 12 1 RO 9 SE PL 8 AT 10 1 DE 7 15 ES 10 1 MT 7 FR 10 1 EL 7 10 IE 10 1 BE 6 5 IT 10 1 NL 6 CY 9 1 PT 6 0 PL 8 1 LU 3 HU DK RO PT SI CZ LT LV BG EE SK UK DE MT AVR FI EL HR BE SE AT ES FR IE IT CY PL NL LU NL 6 1 UK 2 LU 3 Hotel HU - EU AVR = 10 pont Restaurant HU - EU AVR = 11 pont
19 Demand - Supply VAT - Profit generating capability Competitiveness Future Vision 19 Questions Thank You :03:32
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