Hotel Alliance: the VAT reduction brings never-before-seen opportunity in tourism

Hungarian tourism has an unprecedented opportunity, a new chapter will open on January 1, 2020, when 18 percent VAT on hotels will be reduced to 5 percent, said the president of the Hungarian Hotels and Restaurants Association (MSZÉSZ) said at the at the “Traveler” (Az Utazó) magazine conference on Wednesday in Budapest.

Flesch Tamás emphasized that the government decision will have a significant economic stimulus and will lead to a clearer and more transparent situation in the sector. This government assistance is for the whole profession – he pointed out, adding that, according to impact studies, quality improvements, the associated wage increases and their burden will return the public revenue lost due to VAT cuts in the medium term. (MTI)