91997E3554

WRITTEN QUESTION E-3554/97 by Petrus Cornelissen (PPE) to the Commission (12 November 1997)

Subject: Tourist tax

Concern has arisen in the Netherlands tourism sector over the growing number of local authorities that wish to introduce or increase tourist taxes to compensate for revenue shortfalls.

1. Can the Commission state whether higher local-authority tourist taxes are compatible with a policy aimed at strengthening the competitive position of the tourism industry in the EU and promoting the level playing-field considered desirable on the market in that industry?

2. Does the Commission see a task for it to accomplish in this connection?

Answer given by Mr Papoutsis on behalf of the Commission (12 December 1997)

The Commission is aware of the importance of a favourable business environment for tourism and the need for competitiveness. Taxation at whatever level is an important factor in that context. While increasing local tourist taxes could normally be expected to have some impact on the competitiveness of tourism, the objectives of the increases and the utilisation of the corresponding revenue are factors to be taken into account in assessing the impact locally.

While local taxes do not fall within the Commission's competence, it will continue to draw attention to the need to promote an environment favourable to the creation of greater competitiveness in European tourism.