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Column: Dirk Beljaarts | Preventing debacle for hotel industry
Dirk Beljaarts.

Column: Dirk Beljaarts | Preventing debacle for hotel industry

VAT debacle for lodging avoided

And there he was suddenly on 25 October; amendment (36418-55). Tabled by MP Omtzigt (NSC) and co-signed by MPs Grinwis, Alkaya and Stoffer. The aim was to allow the reduced rate for overnight stays in sales tax to lapse from 1 July 2024, which would increase the rate on lodging from 9% to 21%. As an advocate for the hospitality industry, we obviously could not let this happen.

The reduced VAT rate -in general- has been under a magnifying glass in political The Hague for some time. While one study shows that the low rate is not effective, another concludes that it does help maintain purchasing power and support the sector. But with elections approaching, there is more than ever a need to raise one's profile. And we have noticed that.

At Koninklijke Horeca Nederland (KHN), we knew better than anyone that an increase of 12% would be a huge blow to the hotel industry. Not only for private guests, who would suddenly have to pay 12% more for 'the same' room. But also for the attractiveness of foreign organisers who cannot reverse VAT. Within KHN, we therefore immediately gave the looming danger of a possible change in the VAT rate top priority.

We made every effort to minimise support for the amendment. Because there was support, and a majority in the Lower House was certainly not inconceivable. Within 48 hours, we spoke to many MPs. And of course we sought contact with other industry organisations to build coalitions, MKB-Nederland, VNO-NCW and not forgetting the media. Because they played an important role in getting the looming problem on the radar of a large public and politicians.

On Thursday night, we received more and more responses from political parties that were going to vote against it partly at our request. There was frequent app contact into the night with MPs who were in the debate in plenary. It was exciting until late. The vote on the amendment eventually took place only around 03:15 in the morning. Fortunately, it was rejected, much to our delight and that of a lot of hoteliers.

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This just goes to show how unpredictable and capricious politics can be. Unfortunately, opportunism and profiling often prevail at election time, and less attention is paid to a well-thought-out (and calculated) policy document. In this case, too, there was no regard for the group that would have to bear the consequences of this proposal: the lodging industry. Please know that we at KHN are always on top of such matters to represent the interests of our wonderful sector. We don't always realise what we want, but this was thankfully another fine victory.

Incidentally, this success does not guarantee that the subject will not return to the agenda next year after the formation of a new coalition and new cabinet. We are therefore keeping a close eye on this file within KHN.

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