France VAT cut may increase Brit arrivals
Ferry Online Travel News 02/07/2009
Cafés and restaurants are seeing a VAT reduction that may offset the weak pound
An accommodation specialist has said it is hopeful that the move by the French government will see an increase in the number of UK holidaymakers choosing to visit France.
From 1 July, all cafés and restaurants in France will see a reduction in VAT from 19.6 per cent to 5.5 per cent.
P&V Holidays estimates that the tax reduction will mean a savings of 10 per cent for tourists, with a meal normally costing 15 euros available for just 13.20 euros from 1 July.
The accommodation specialist is offering a 45 per cent discount on its properties until November, looking to stimulating demand from UK travellers.
Its ‘Eurobuster’ programme prices reflect the exchange rate during the summer of 2008, when one pound was worth 1.28 euros, and the cost of holidays was 22 per cent lower than June of this year, when one pound was buying approximately 1.05 euros.
The sales and marketing manager for the UK at P&V, Cathy Rankin, said: “We are proactively trying to offset the effects of the weak pound by introducing ‘Eurobusting’ offers of up to 45% off all of our properties in the summer break.”
Rankin added: “The VAT cut in restaurants compliments this as many of our customers rely on good value local restaurant food during their stay.”
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