Travel Update – Taxes that May Increase Your Holiday Cost

The Municipality of Rome has introduced a new room tax that is effective from January 1, 2011. Visitors to Rome will now have to pay a new tax, which is to be collected by the hotel or property, and which is based on a per person, per night basis.

The charges, per person per night, are as follows:

• 4* and 5* hotels – €3
• 1*, 2* and 3* hotels – €2
• Others (B&Bs, holiday apartments, etc.) – €2

So if you book a 4-star room for two people for 3 nights, your new tax will be €18.

The tax will apply for the first 10 nights’ stay and does not apply to children under 10 years of age.

Travellers should be aware that this is a government impost, so don’t take it out on the hoteliers, many of whom are not pleased with the tax.

The U.K. is another destination where a VAT increase in the New Year will impact on travel costs.  The U.K. VAT increases from 17.5% to 20% with effect from January 4, 2011.