In another article on the Latvian government’s plans to raise VAT for hotel services from 5 percent to 21 percent, Juris Zudovs, president of the Latvian Hotel and Restaurant Association, says that small and medium-sized hotels are in danger the most. He says that revenues from hotels are a vital part of an economy's exports, adding that many travel agencies have signed contracts with hotels for next year and these prices have been printed in their brochures. Hotels cannot increase their room rates overnight, partly because of intense competition in the sector, so they will be forced to cover all expenses by themselves.

 

Diena, 2008-12-11