Travel employers request VAT cut to 9pc

Travel employers are requesting that the Tourism Ministry be preserved as a public entity, that holiday tickets be introduced, the Travel Law promoted and the Value Added-Tax on tourist packages be cut to 9 percent, from a current 19 percent, Chairman of the Federation of Travel Employers’ Associations (FPTR) Daniel Vasilescu told a news conference on Wednesday.

Vasilescu said that the housing capacity in Romania’s hospitality industry increased by 2.6 percent in 2009, with the highest rise, of 4,203 places, being recorded at pensions. Data with FTPR indicate that the number of international trips by Romanians decreased in 2009. The number of foreign visitors dropped 15.2 percent and the Romanians’ trips abroad declined 16.1 percent, yet tourist circulation increased 5 percent from 2008.

‘As many as 80 percent of Romanian tourists spent their holidays in Romania because prices were affordable. Those spending their holidays abroad opted for better quality to the detriment of costs,’ said Vasilescu. Travel business people say the average per person amount spent by Romanians on holidays in 2009 was nearly RON 1,000 and tourist products were purchased through direct negotiations not through travel agencies.
FTPR is expecting a 2010 business turnover similar to the 2008’s.

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