The Bucharest Tourism Promotion and Development Association agrees that hotels in the Capital should pay a tax of 1% of the first night’s accommodation rate for each client, provided that these funds are collected in a separate account and used exclusively for the tourism promotion of Bucharest, as is the case in Mamaia or Oradea.
Calin Ile, vice president of the Bucharest Tourism Promotion and Development Association, stated that every year the Capital City Hall collected about 3 million EUR from the hotel tax, money that should have been used for the city’s tourism promotion. The money was distributed to the sector city halls, and from there, no one in tourism knew exactly what happened to it.
The new Fiscal Code provides for the elimination of the hotel tax, of 1% of the first night’s accommodation rate, but allows for the collection of a special tourism promotion tax for destinations intended to contribute exclusively to tourism promotion and development.
Source: Profit
Frequently Asked Questions
What is the proposed tourism tax for Bucharest?
The proposal involves a 1% tax on the first night’s accommodation rate, specifically dedicated to the city’s tourism promotion.
Why is a separate account required for these funds?
A separate account ensures that the money is used exclusively for tourism development rather than being lost in general administrative budgets.
How does the new Fiscal Code change hotel taxation?
The new code removes the mandatory 1% hotel tax but allows local authorities to implement special taxes for destination promotion.