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Has the champagne lost its sparkle?
Dear Insider,
Tourism is a cash cow, easily milked by European governments. They have already sharply raised taxes for the hotel industry and airlines or have announced it for 2026. It just keeps coming. Two glaring examples: France wants to introduce an extra VAT of 33% on luxury goods - no more popping of champagne corks. And the British cry "Taxed Out". Passenger tax will rise again by next April, while the 20% VAT for the hospitality sector will remain. This has destroyed 89,000 jobs in the last nine months alone, UKHospitality says. Only in Germany does the VAT on food appear to be being rolled back.
Investors and operators have already switched to other markets due to the cost explosions, and the hotel market could freeze over, at least in areas, after such a cold tax bath.
At the end of the day, it's all a question of proportion: The US franchisor Choice Hotels no longer wants to expand in the United States, only in Europe and EMEA. In a mega-interview spanning ten pages, Ricardo Losada Revol, Senior VP International, and David Beers, CEO EMEA, stress: They want to write a new chapter in history with Europe. They are stepping on the gas, already taking over entire hotel bundles in individual countries; only Germany is on hold - too expensive.
