Travel and tourism experts continue their warnings if the Latvian government increases VAT to 21 percent. The hotel and restaurant sector will experience the greatest shock because of the sudden rise to 21 percent from the current 5 percent. Vlad Koriagin, director of the travel agency Baltic Travel Group, is dismayed with the decision; agencies like his have already signed contracts with hotels with a rate of 5 percent. He says that hotels are not prepared to cover the difference. Koriagin believes that clients will not re-sign their contracts and could refuse to go on trips. In short, he says that tourism sector will experience a catastrophe.

 

Biznes&Baltija, 2008-12-11