European Union member states should standardise VAT rates to facilitate tourist spending and co-ordinate holidays across Europe to relieve pressure on tourism at peak periods, according to an advisor to the UN World Tourism Organisation (UNWTO).
UNWTO special advisor Georgios Drakopoulos told an EU Conference on Coastal and Maritime Tourism in Athens last month: “Let’s introduce lower VAT for tourists. Why not move from national rates [of VAT] to rates on products, so they are the same everywhere?”
Presenting a series of issues he suggested the European Commission should address, Drakopoulos argued: “More than 60% of Europeans are obliged to take their holidays in July or August and that will not change unless there is enforcement by law to stagger annual leave.”
He hit out at the EC, saying: “There are 30-odd EC initiatives and programmes for tourism and we are lost in these things.”
Michel de Blust, chairman of the European Travel Agents and Tour Operators Association (Ectaa), agreed with the UNWTO special advisor on the need for co-ordination of holiday timings.
De Blust said: “States must discuss how better to co-ordinate school holidays. More than 400 million Europeans travel abroad every year and more than 40% select sea, sun and beach holidays.”
He added: “Taxation is a challenge. Europe is an expensive destination and we must make sure this does not continue. When a Chinese visitor spends €100 in Europe, €35 is in taxes and charges.”
De Blust also insisted the EU should make more of the Schengen visa system which offers visitors multiple access to member states. He said: “The Schengen visa is lovely but it’s like buying a Rolls Royce and keeping it in the garage. It gives access to 23 countries, but the bureaucracy attached to it is a barrier to visitors.”
He suggested: “Why not give a selective visa-waiver to certain groups, for example to seniors, to address seasonality?”