British travelers will be able to eat and drink for less in France this sunny season, after the French administration approved new tax cuts.
The VAT slash from 19.6 per cent to 5.5 per cent comes into effect on July 1 and will mean that French restaurateurs and cafe owners can decrease the rate of meals by about 10 per cent.
“This is certain to have an optimistic result on bookings. France is still one of the finest places to eat in the world and, in these critical times, every small helps,” said Jonathan White, managing director of VFB Holidays.
The move will facilitate balance the weakness of the pound next to euro. Even if the pound has strengthened against the euro in current weeks, its recent rate of 1.08 is 12 per cent less than previous summer.
“Our first reason for agreement is the start date. The season starts on July 1,” said Didier Chenet, leader of France’s hotel, restaurant and cafe union. “Clients will now be able to take pleasure in a jam-packed meal with a 5.5 per cent VAT fee.”
The tax cuts go after cuts in airline tax by the Dutch and Belgian governments, in an offer to remain people flying.
Hoteliers in Greece and Spain, below pressure from British trip operators, have reduced hotel prices following a drop in the quantity of British guests – a move which has seen resurgence in bookings, according to the online tour agent, On the Beach.
The British Government still plans to increase Air Passenger Duty by equal to 112 per cent over the next two years, in spite of the move being generally destined by the travel industry.