Political Scolding

The increase in value-added tax scheduled for 2007 in Germany has been met with stern opposition by the German Tourism Association (DTV). DTV President Tilo Braune called the raise of VAT to 19 per cent “poison” for the German hotel and catering industry. In this context he rightly referred to the fact that 21 of 25 EU member countries have reduced VAT rates for their lodging industry. He already predicts a negative growth rate for the industry, which will certainly involve further job cuts and business closures. His justified demand for the cancellation of the agreed tax increase has been – as could be surmised – “acknowledged” and put on ice by government officials. But we’ve got to stay persistent! The formation of target-oriented “coalitions” with like-minded people (such as the Association of the German Amusement Park Industry or the European Waterpark Association) is becoming more likely… (eap)