5th European Tourism Forum,

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• 5th European Tourism Forum,
• Cyprus, 16-17 November 2007
• Is the EU an expensive destination?
• A journey through taxes and charges affecting
  travel to and within Europe
• By Jan Van Steen,
• President of ECTAA

European Tourism Forum, 16-17 November 2006
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• Is Europe an expensive destination?
• Air transport becoming cheaper
• New routes opening up
• Travel becoming increasingly
• global
• competitive
• Europe competing with other destinations
• Europe loosing market share

European Tourism Forum, 16-17 November 2006
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• Price essential factor for customer
• Tourism very demand elastic
• Need to carefully price products
• Problem Myriad of taxes, fees and charges added
  onto tourism services
• Price inflated

European Tourism Forum, 16-17 November 2006
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Effect of price increase on demand in case of
price elastic demand
European Tourism Forum, 16-17 November 2006
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Ranking of cities with highest taxes
Source World Travel Tourism Tax Policy Center,
June 2002
European Tourism Forum, 16-17 November 2006
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Ranking of cities with highest taxes as a of
price
Source World Travel Tourism Tax Policy Center,
June 2002
European Tourism Forum, 16-17 November 2006
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Example of taxes, fees and charges for trip to
Europe

• Chinese tourist travels to Europe coach tour
• Schengen visa fee 60
• Int. airport fees / charges 131
• Fuel surcharges 60
• VAT on coach travel 25 in DK, 16 in DE, 10 in
  AU/IT
• Motorway user charges
• Entry fees and high parking for coaches in
  historic sites in IT
• VAT on hotel restaurant 25 in DK, 16 in DE,
  10 in AU/IT
• Bed taxes per person / per night

European Tourism Forum, 16-17 November 2006
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Example of taxes, fees and charges for trip to
Europe contd

• Chinese tourist travels to Europe coach tour
• ? On average package tour of 10 days sold for
  approximately 1000 in China, 30 of the total
  price constitute taxes, fees and charges

European Tourism Forum, 16-17 November 2006
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Example of taxes, fees and charges for trip
within Europe

• Maltese tourist travels to London and Paris
• Airport taxes 247
• French solidarity tax air tickets 1-10
• Fuel surcharges 78
• VAT on hotel restaurant 5,5 / 19,6 in FR,
  17,5 in UK
• VAT/charges for car rental 30,08 in London,
  28,52 in Paris
• Bed taxes per person / per night

European Tourism Forum, 16-17 November 2006
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Conclusions - Recommendations

• Enhance sustainable development of tourism rather
  than crippling it with unjustified taxes
• Intelligent taxation
• Reinvest tax receipt into tourism
• Abandon taxes, fees and charges that bear no
  link to tourism
• Level-playing field - equal VAT treatment across
  Europe
• Active involvement of tourism sector in
  formulation of tax policy

European Tourism Forum, 16-17 November 2006
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• Thank you for your attention!

ECTAA bi-annual meeting, Athens, 1-2 December 2005