Rome To Levy Hotel Tax On Jan. 1 - Business Travel News

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Rome To Levy Hotel Tax On Jan. 1

November 23, 2010 - 12:10 PM ET

By Amon Cohen

The growing trend for taxation of travel in Europe continued after the city of Rome confirmed last week that an accommodation tax will take effect from Jan. 1, 2011.

The tax will be €3 per night for four- and five-star hotels and €2 per night for all other accommodation. The tax is for a maximum of 10 nights and applies to bookings made and even paid before the first of next year. As a result, it will affect some corporate meetings that already have been arranged.

The Italian state tourist office said Rome's city council is introducing the tax "to generate additional revenue for the improvement of services and infrastructure offered to the tourist." It follows a succession of new taxes announced in Europe in the past six months, including a room tax in Cologne—which several other German cities are expected to follow—and the imposition of air departure taxes by Germany and Austria.

"Travel does seem to have become a target for governments when it has not been overly targeted in the past," said NBTA Europe managing director Paul Tilstone. "We are in an unprecedented time and European countries are having to make cuts or raise more revenues, but increased taxes add to the equation when calculating the return on investment in business travel.

NBTA Europe's parent organization, the National Business Travel Association, has lobbied vigorously against taxation of travel in the United States and Tilstone said NBTA Europe is planning to do the same in the European Union.

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