Experts say tax reduction in Germany will push up hotel costs

12/10/2009 | BusinessTravelNews.com

The German government is considering reducing the value-added tax on hotel room rates in an effort to drive down hotel costs. However, experts say that the move likely will not cause hotel rates to decline and instead may actually cause them to go up. A survey of members of a hotel and restaurant association in Germany found that hotels are not planning to pass on the tax savings to guests.

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