According to a press release sent on Wednesday by Romanian hoteliers, the abolition of vouchers for the budget sector would promote the revival of “black” tourism and reduce the amount of investment.

And the increase of VAT on hotels and restaurants to 19% will lead to an increase in the cost of tourist services in Romania by at least 10%, but above all, the statement adds, to social problems and a deepening of the budget deficit. It would also permanently remove us from the map of international tourism and deepen the already existing disadvantages compared to competing destinations, the authors of the release conclude.

The National Association of Travel Agencies of Romania (ANAT) opposes recent proposals by some representatives of the Romanian government to cancel holiday vouchers for state employees and increase taxes on the tourism industry. “In the context of the debate over voucher development and private sector workers, these measures will have a serious negative impact on tourism and the national economy, potentially pushing the country into recession,” the document added.

The government will undermine the potential of Romanian tourism by canceling holiday vouchers

Thus, Romania would risk losing a valuable opportunity. The government would undermine the potential of Romanian tourism by canceling holiday vouchers for public sector workers, while other private sector workers could take advantage of these opportunities. The decision to limit threatens both equality and the development of tourism in the country, say the authors of the press release sent on Wednesday.

In their opinion, holiday vouchers are an important opportunity for all workers, regardless of whether they are public or private, and a breath of fresh air for the industry and have had a significant positive impact on tourism in Romania so far. They have caused a doubling of the number of classified units, as well as an apparent increase in investment in the accommodation sector. The removal of this facility will affect the survival and development of residential structures, causing significant damage to the industry.

“ANAT was surprised to learn of the Romanian government’s intention to cancel the holiday vouchers provided to state employees, given that vouchers for employees of private companies are currently being discussed. In addition, excessive taxation will be a huge obstacle to the development of tourism. The intention to increase the VAT on hotels and restaurants to 19% will lead to at least a 10% increase in the price of tourist services in Romania, but especially to social problems and a deepening of the budget deficit. Worse, after the dividend tax increase since the beginning of the year from 5 to 8%, an increase to 10% is being considered. Why is the Romanian government not seriously thinking about reducing budget expenditures, but sees tax increases as the first solution? In an already difficult period for the industry, such an event can reduce the tourist attractiveness of our country and reduce the number of tourists,” says Alin Burcha, the first vice-president of ANAT.

ANAT draws attention to the fact that the tourism sector is an absolutely necessary investment for the country’s economy and Romania’s image in the world. Governors must adopt sensible and effective measures to increase tourism taxation, and holiday vouchers must remain the solution to stimulate this sector.

“ANAT joins economists and employers who sound a serious alarm about the serious negative impact of these measures on the economy. The second increase in VAT in a short time in the field of tourism will lead to an increase in prices in the chain. This measure will move the economy into the living wage gray zone and accelerate the downward spiral of consumption. In all neighboring countries, tourism has a reduced VAT rate. In addition, tourism, which has suffered so much from the pandemic and the proximity of the war, has been compensated much less in Romania than in the rest of Europe. The Horeca 2 event, announced as certain and included in the GEO last year, was no longer implemented, and tourism companies, decapitalized and without qualified staff, were left to manage as they could. Compared to 2019, the number of arrivals in Romania is still halved, recovery is the most difficult,” emphasizes Adrian Voican, vice-president of ANAT and vice-president of the Romanian Tourism Advisory Council.

“Investment in tourism, which was encouraged by the previous policy, the stability of holiday vouchers for at least 5 years, is now at risk due to the circulation of options that would tax or even stop them. Even if these measures are not adopted in reality, at the end of the day, discussing them in the public space inflates the fog of confidence, stability and predictability in the economy. In the context of the inflationary crisis that has engulfed Romania, the measures are to ease the tax burden on taxpayers so that they can boost the economy. These measures of excessive taxation would bring the national economy to its knees and increase the number of bankrupt companies and the unemployed in the face of an apparent decrease in demand caused by a lack of purchasing power. It would also permanently remove us from the map of international tourism and strengthen the already existing disadvantages compared to competing destinations,” hoteliers say.

ANAT urges the governors to review these restrictive fiscal proposals, to think ahead, in the medium and long term, and to consider tourism as a strategic investment for the Romanian economy. Consistent measures and effective support are needed for the development of the tourism industry so that it can continue to contribute significantly to the state budget and be a source of pride, a financial plus and an image for the entire country.