Etoa slams hike in Paris accommodation tax

The European Travel Association Etoa has hit out at a substantial hike in the overnight tax on accommodation in Paris, describing its imposition as “unprecedented”.

An increase in the tax per person per night of between €3.32 and almost €7, depending on hotel star-rating, was imposed from January 1 without warning.

Etoa drew attention to the tax in an update to members, noting the standard overnight accommodation tax in Paris (taxe de séjour) has increased by about 10% on 2023, with an inflation-linked rise expected. But the Paris regional transport authority, Île-de-France Mobilités (IDFM), was permitted to add a surcharge on the tax under a new legal provision only published on December 29.

This raised the tax rates per person per night from €3.75 to €10.73 in five-star accommodation, from €2.88 to €8.13 in four star, and from €1.88 to €5.20 in three star.

The tax is levied only on adults – children under 18 are excluded – but the increase on bills could still be hefty.

Etoa slammed the increase, saying: “The surcharge is an opportunistic raid on visitors to subsidise regional infrastructure and takes no account of the impact on operators and suppliers. The lack of notice is unprecedented. We are engaging with local authorities as a matter of urgency.”

The association told members: “Unless the law is reversed, suspended pending review or a grace period is introduced, the tax is due if the stay begins in 2024, irrespective of the date the booking was made.”

However, Etoa noted: “If full payment was made before the end of 2023 there may be a contractual basis to pay no more.”

It added: “Cancellation aside, the options are either to absorb the cost, pass on the cost to the client or require the end consumer to pay on the spot. B2B renegotiation is inevitable, with low-margin business particularly vulnerable.”

The surcharge was enabled by a national budget voted through by the French parliament on December 21 and published on December 29.

The association noted: “Etoa had no notice of this exceptional move and is grateful to members who brought the issue to our attention.”

Paris is due to the host the Olympic Games in July and August, and Etoa stated: “This is a bad start to the Olympic year.”

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