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Paris: New surcharge puts overnight tax up by c.180%

Paris

ETOA has vehemently criticized the introduction of a new surcharge on visitors, labeling it as an “opportunistic raid” aimed at subsidizing regional infrastructure. ETOA expressed significant concerns regarding the lack of consideration for the impact such a surcharge could have on operators and suppliers within the travel and hospitality industry.

The standard Paris taxe de séjour (overnight tax) has increased by c.10% from 1 January 2024 compared to 2023, more or less tracking recent inflation.

However, due to a new legal provision published on 29th December (Article 140 of the Finance Bill 2024) allowing up to 200% surcharge on one element of the tax in favour of Paris regional transport, Île-de-France Mobilités (IDFM), the actual increase is c.180%, as shown in table below, says European Tourism Association (ETOA). This affects all municipalities in Île-de-France region that impose an overnight tax.

The surcharge was enabled by a national parliamentary budget voted through on 21st December and published on 29th December 2023. ETOA had no notice of this exceptional move and is grateful to those members who brought the issue to their attention.

Sample changes for 2024 per person per night*

  • 5 star – 6.98 euros  increase (6.60 euros  is from new tax in favour of IDFM)  2024 – 10.732023 euros  – 3.75 euros
  • 4 star – 5.25 euros  increase (5.00 euros  is from new tax in favour of IDFM)2024 – 8.132023 euros  – 2.88 euros
  • 3 star – 3.32 euros  increase (3.20 euros  is from new tax in favour of IDFM) 2024 – 5.202023 euros  – 1.88 euros   *excl. children under 18, as before.
What this means for business

ETOA comments, “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. If full payment was made before end of 2023 there may be a contractual basis to pay no more.

The surcharge is an opportunistic raid on visitors to subsidise regional infrastructure and takes no account of impact on operators and suppliers. The lack of notice is unprecedented. We are engaging with local authorities as a matter of urgency.

Cancellation aside, as the options are either absorb the cost, pass on the cost to client, or require end consumer to pay on the spot, B2B renegotiation is inevitable, with low-margin business particularly vulnerable. This is a bad start to the Olympic year.”

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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