The planned VAT increase on accommodation from 9 to 21 percent is putting pressure on bookings at hotels and holiday parks, according to Sjuk Akkerman of ING. Bookings could drop by XNUMX percent. Budget accommodations and those in border regions are expected to suffer the biggest decline.
The planned VAT increase weakens the competitive position of Dutch accommodation providers, especially at a time when the sector is recovering and needs to invest for the future. A decline in bookings directly impacts the earning capacity of entrepreneurs in the sector. Fewer bookings means lower revenue and less room to invest in staff, sustainability, and innovation.
Sjuk Akkerman
Transitional arrangement
According to Akkerman, a solution lies in implementing a transitional arrangement, for example, by increasing the percentage by approximately two percent annually for five years. This gives entrepreneurs time to adjust their pricing strategies and cost structure and invest in quality and customer experience.
The cabinet, and the Ministry of Finance in particular, is being urged to consider the economic and regional consequences of the increase. "Without supportive measures, a sector that contributes to employment and regional development is at risk of shrinkage," says Akkerman.
More information: www.ing.nl/leisure