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WTTC Urges French Government To Reconsider Tourist Tax Plans

French government plans to hike tourism taxes by up to 433% have been slammed by the Word Travel and Tourism Council.

The proposal follows a rise in VAT on hotel stays from 7% to 10% at the begining of the year.

WTTC chief executive and president David Scowsill called for the tax hike to be ditched and said: “Taxes must stimulate growth, rather than thwart it.”

He said: “WTTC’s research shows that direct increases in taxes on tourists have the effect of deterring travel and reducing overall taxation income.

“Travel and tourism is a major pillar of the French economy, which contributes to economic growth and job creation.

“The industry contributes 9.5% of France’s total GDP and supports over 2.8 million jobs or 10.5% of total employment. It needs to be protected and encouraged. This punitive proposal will do the opposite.”

Scowsill added: “With recovery in the eurozone now underway, more Europeans should be travelling domestically and regionally this year.

“But the 3% VAT rise and these additional hotel taxes will only further erode France’s price competitiveness.

“It is completely the wrong way of going about stimulating demand. We urge the French government to reconsider and urgently reverse the recent rise in hotel VAT and drop this latest proposal.”

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