Paris hoteliers have recently expressed concern over a government plan to triple the tax paid by visitors on hotel nights next year when the capital will host the Olympics. The government has said that the 200 per cent increase in the tourist tax will help finance public transport.
Tourist tax in Paris currently ranges from €0.25 ($0.27) per night for the most basic accommodation to €5 ($5.5) per night for luxury establishments. The government also said that it wants to triple that fee as part of its 2024 budget, which it plans to pass through parliament without a vote before Christmas.
In a statement released on December 19, the Union of Trades and Hospitality Industries (UMIH) hotel noted that professionals presented alternative scenarios that carefully consider the imperative to finance transport in the Ile-de-France region.
These proposals aimed to preserve the principle of tax proportionality by significantly softening the proposed increase in the tourist tax imposed on hotels. However, each scenario was systematically rejected.
The same authority also added that the adoption of Article 27 is poised to result in an annual collection of €423 million. This figure significantly surpasses the stated financing requirement of €200 million as communicated by IDF Mobilités and the Government. This outcome has raised concerns among industry experts, as the excess revenue appears disproportionate to the originally cited funding needs, prompting further scrutiny and debate.
The professionals proposed scenarios that took into account the need for financing transport in the Ile-de-France region, maintaining the tax’s proportionality while drastically reducing the increase in the tourist tax applied to hotels. Scenarios rejected one after the other.
According to the president of the UMIH hotel branch, Véronique Siegel, and the President of the National Group of Hotel Chains (CNG), Jean-Virgile Crance, the deck was stacked against them from the very beginning.
The duo strongly denounces what they perceive as an arbitrary decision, which contradicts the commitment made by the President of the Republic and the Government to avoid introducing new taxes. They emphasize the need to break the pattern of routinely relying on tourists to fund regional transportation initiatives.
Expressing concern, they highlight that this decision deals another significant blow to the competitiveness of their sector and tarnishes the image of France, especially at a time when all eyes are on Paris for the upcoming PARIS 2024 event.
Moreover, in response to the impending tourist tax increase during the Olympics, hotels have proactively raised their rates for a night from July 26 to August 11, 2023. This preventive action aims to offset the anticipated financial impact of the elevated taxes during the peak period of the event.
In addition, President Emmanuel Macron’s government has opted to invoke Article 49.3 of the French constitution to push through its 2024 budget without subjecting it to a parliamentary vote.
