IMM Romania:Tourism activity on downward trend, 21% VAT could cause over 10 billion lei losses

Activity in Romania's domestic tourism sector is on a downward trend, with seven out of ten operators reporting declines both in revenues and in overnight stays, according to the fifth edition of the White Paper on Tourism in Romania, launched by IMM Romania at an event in Constanta on Thursday.

The document, prepared in collaboration with Groupama Asigurari and with the support of the Ministry of Economy, Digitalization, Entrepreneurship and Tourism (MEDAT), warns that a potential alignment of the reduced VAT rate in tourism with the standard 21% rate would severely impact the sector, generating losses exceeding 10 billion lei in turnover.

"Data from the 2025 White Paper on Tourism clearly show that maintaining the reduced VAT in tourism is vital. Our analysis highlights that if VAT were raised to the standard rate, the state would lose around 10 billion lei in turnover differences. Higher VAT means higher prices, lower consumption, increased costs, and loss of competitiveness for tourism entrepreneurs. That is why we are making a public appeal to preserve the reduced VAT rate in the tourism sector as a measure to support the industry and the national economy. At the same time, funding remains largely dependent on own resources, and operators continue to invest in expanding accommodation capacity," said Florin Jianu, honorary president of IMM Romania.

The document also notes that the primary concern of 60% of tourism entrepreneurs is maintaining current business levels, with development plans postponed due to the challenging economic context.

"Activity in the tourism sector is on a downward trend, with seven out of ten operators reporting declines in both revenues and overnight stays. This reflects the current difficulties in the field, particularly changes in consumer behavior and economic conditions. Vacation vouchers have significantly contributed to the sector's growth, with turnover rising from 23 billion lei in 2015 to an estimated 53 billion lei in 2025. Thus, with an investment of 6.75 billion lei through vacation vouchers, turnover in the sector has doubled, demonstrating the major positive impact of this instrument," the White Paper on Tourism in Romania notes.

Experts in the field anticipate that 2025, and possibly 2026, will represent years of structural crisis for tourism, marked by sharp declines in both revenues and overnight stays, highlighting the urgent need for support measures.

The White Paper on Tourism in Romania analyzes the main characteristics, risks, vulnerabilities, and opportunities of the tourism sector, aiming to help shape more effective public policies and provide a clear overview of tourism in two key areas: accommodation units and travel agencies.