Kassel Introduces Overnight Stay Tax: A Game-Changer for Tourism?
Kassel city council approves levy imposed during night-time hours. - City authorities in Kassel greenlight on-event taxes.
Let's dive into the latest development sweeping Kassel - the approval of the controversial overnight stay tax! This controversial tax received a majority vote in a city council meeting and is set to revamp the tourism sector.
The overnight stay tax, a long-discussed topic in Kassel, aims to fund tourism and cultural infrastructure. The city anticipates earning around €3 million annually from this tax. Mark your calendars, since the tax goes into effect on July 1, 2025.
From this date, a 5% tax on the net overnight accommodation price per room and night will be applied to Kassel's accommodation providers, including hotels, pensions, and both commercial and private providers. Providers will be responsible for paying this amount to the city. Initially, a fee of €3 per person per night was planned, but the start date was pushed back from April 1 to give businesses more time to prepare.
Overnight stays in youth hostels and group trips with children and youth under 18 years old are exempt from the tax.
Industry and trade associations have voiced their concerns over this tax, arguing that it unfairly burdens guests and creates excessive administrative work. Hotels would need to overhaul their accounting systems, review existing contracts, and grapple with additional bureaucratic costs, according to Oliver Kasties, deputy managing director of the Hotel and Restaurant Association Dehoga Hessen. The local Chamber of Industry and Commerce, too, doubts the tax's merits, fearing it could deter potential visitors and negatively impact gastronomy, retail, and taxi services.
With neighboring cities like Offenbach also approving similar taxes, and Darmstadt having been collecting a 2% tax on net costs for each overnight stay since January 1, 2023, it remains to be seen how Kassel's implementation will pan out.
Stay tuned for updates as we monitor Kassel's tourism landscape post-tax implementation!
- Overnight Accommodation Tax
- Kassel
- Tourism Boost or Bust?
- City Council
- Net
- German Press Agency
- The upcoming overnight stay tax in Kassel, as decided by the city council, promises to fund tourism and cultural infrastructure, with anticipated annual earnings of €3 million.
- The tax, set to begin on July 1, 2025, will apply to various accommodation providers in Kassel, such as hotels, pensions, and even commercial and private providers alike.
- While some community members are looking forward to possible improvements in the tourism sector, industry and trade associations have raised concerns about the tax, including its potential impact on administrative work and the possibility of deterring potential visitors.
- Vocational training for hotels and other industries may be necessary due to the tax's implementation, as operators will need to overhaul their accounting systems and review existing contracts to accommodate the change.
