Impact of Taxation on Hospitality Sector – New Study

We are pleased to share the final report of the HOTREC–Syntesia study on the impact of taxation on the European hospitality industry.

This analysis was commissioned in response to growing concerns across our membership regarding rising VAT rates, new or higher tourism taxes, and increasing cumulative fiscal burdens.

Headline results from the modelling

“A 1-point VAT increase would reduce sales in the industry by about €8 billion and see over 100,000 job losses.”

“Applying standard VAT rates to the sector could have major knock-on effects from business closures and bankruptcies – nearly 1 million job losses, equivalent to a 0.5% fall in GDP.”

Challenges identified

• Rapid increase in tourism taxes across Europe (approaching 40% of VAT revenue)
• Diversifying tax structures: VAT, tourism levies, parafiscal fees, labour-cost increases
• A widening fiscal gap with short-term rentals
• Significant vulnerability in rural and SME-dominated areas
• Major risks of supply-side shocks from abrupt VAT hikes

Member resources

• Executive Summary (PDF)
• Executive Summary (Interactive)
• Full Report (PDF)
• Full Report (Interactive)
• Public Statement (PDF)