The elimination of holiday vouchers for the public sector would encourage the re-emergence of "black" tourism, and the increase of the hospitality VAT to 19 percent would result in an increase by a minimum 10 percent in tourist service costs, while permanently removing Romania from the map of international tourism, industry employers' associations warn in point of view issued on Wednesday.
"The National Association of Travel Agencies (ANAT) has learned with surprise of the government's intention to roll back holiday vouchers for public employees exactly at a time when the grant of such benefits to private company employees is being discussed. Also, excessive taxation would raise a huge obstacle for tourism growth. Plans to increase the VAT on hotels and restaurants to 19 percent will lead to an increase by at least 10 percent in the costs of Romanian tourist services, but especially to social problems and to the deepening of the budget deficit. Even worse, after the tax on dividends was put up at the beginning of the year from 5 to 8 percent, increasing it even further to 10 percent is now being considered. Why doesn't the Romanian government seriously think about reducing budget expenditures and only sees a tax increase as the first solution? In an already difficult period for the industry, such a measure could reduce the country's tourist attractiveness and send tourist numbers dwindling," said ANAT first vice-president Alin Burcea.
According to a statement of the organization, amid discussions regarding the expansion of the voucher system to the private sector, these measures would have a major negative impact on tourism and the national economy, potentially driving the country into recession, because "Romania would risk losing a valuable opportunity", and "the government would blow up the potential of Romanian tourism by canceling holiday vouchers for public sector employees, while other private sector employees could still benefit from these facilities."
ANAT vice-president and vice-chairman of Romania's Consultative Tourism Council Adrian Voican argues that "increasing the tourism VAT rate for the second time in just a short period would lead to chain price increases." AGERPRES
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