A spate of hotel tax and price rises in Paris threatens to make the city 10% more expensive in 2012 while offering visitors no extra value.
UK-based tour operator JacTravel warned the price increases will see tourists head elsewhere in a year when Paris expects to pick up visitors at the expense of London.
The company identified four factors causing the damage. A new 2% luxury tax on four and five-star properties was introduced on November 1, and VAT on hotel bills will rise from 5.5% to 7% from January.
At the same time Parisian hoteliers are pushing for above-inflation price increases off the back of a bumper 2011, and the introduction of a new star-rating and government-inspection regime is expected to drive up prices.
JacTravel senior contracts manager Laurence Ruidant said: “We are pleased to see a new star rating system and a rigorous inspection regime, as this will drive up standards.
“However, many hotels are trying to be rated in a higher category than they merit in order to increase room rates. While this is understandable, individual hotels risk being seen as poor value and Paris will be seen as overpriced.”
Ruidant said there was a danger the drive for ratings would reduce the number of budget hotels “which are essential for maintaining tourist volumes”.
She warned the economic outlook and high prices in London around the Olympic Games could lead many long-haul visitors to give Europe a miss next year.