Europe’s tour operators have condemned Cologne for the introduction of a new ‘culture’ tax, which they warn will lead to ‘an administrative nightmare’.
The European Tour Operators Association says it is still unclear who is supposed to pay the 5% tax and how they are supposed to pay it, even though was introduced on October 1.
Cologne City Council, which imposed the tax, says hotel guests must pay 5% of the total price of their accommodation but ETOA says hotels don’t know whether the price should be calculated before or after the addition of VAT and they aren’t sure how much to charge when guests have booked via a third party.
"It also promises to be an administrative nightmare as hotels will have to collect this money from clients, many of whom will have prepaid," said ETOA’s executive director Tom Jenkins.
The decision to implement the tax was taken on September 9, three weeks before its implementation. According to ETOA, some hotels are still unaware of the sudden levy.
By Linsey McNeill
