Spanish hotel tax hike 'could give Greece an advantage'

One of the advantages of owning timeshare is that because owners have paid up front for their holidays, they are immune to sudden hikes in room rates, a perfect example being Spain’s new increase in VAT on hotel rates which comes into force within the next few weeks.

This month, the Spanish government’s move to increase VAT on hotels from 8% to 10% has made travel headline news and Prime Minister Mariano Rajoy is wasting no time in implementing the new rate, which starts in August.

There were fears that the hotel VAT would escalate to a whopping 18%, but even with the cap at 10%, some travel experts are predicting that the increase in hotel rates in Spain could boost bookings to Greece and other countries.

Monarch Travel Group managing director Hugh Morgan told trade publication Travel Weekly: "Any increase in VAT on hotels, especially when Greece and others are thinking of reducing it, is a folly. This charge will automatically be passed on to the client so prices will go up.

"If Greece cuts VAT on hotels, Spain won’t be competitive. This gives Greece an advantage."

He added: "We have always been very supportive of Spain but this kind of thing does not help".

Mr Rajoy has just introduced a fourth round of austerity measures in Spain to try to reduce the nation’s serious budget deficit by €65/£51 billion over the next two and a half years. Spain remains the most popular destination in Europe for timeshare owners, and is one of the top holiday spots for golfers. The Costa del Sol now has more golf courses per capita than any other tourist destination.

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