The Latvian government plans to increase VAT for different sectors of its troubled economy, including hotels. The current discounted VAT rate for hotels is 5 percent. The Europa Royale Hotel Riga’s general director, Janis Jenzis, believes that if VAT is increased many hotels will go bankrupt, especially in a climate of rapidly falling room rates. Jenzis thinks that higher VAT will significantly impact Latvia’s incoming tourism industry and make the country’s hotels less competitive compared to those in other countries.

 

Dienas Bizness, 2008-12-09