Tourism Ministry Pits Official Data Against Industry Complaints

05.26.2011 By Bostan Radu

Romania's hotel occupancy rate increased 13% in the first quarter of the year, according to official data, said Tourism Ministry official Paul Marasoiu on Thursday, contesting the industry's claim that the occupancy rate declined by 20%.

In a press conference Wednesday, hotel and tour agency representatives said Romanian tourism has not yet emerged from the crisis and the number of tourists who stayed in Romanian hotels in the first quarter decreased 20% on the year.

Radu Enache, chairman of the Romanian Hotel Industry Federation (FIHR), said on Wednesday that hotel operators are overburdened by taxes, which block investments and operations.

Marasoiu stated the taxes that apply to this field are no higher or lower than three, five or seven years ago.

Furthermore, he said, the VAT applicable to lodging and breakfast services is 9%, a bill will reduce the local hotel tax by 4% and governmental incentives provided to investments amount to more than EUR5 million.

Enache also complained about the lack of tourism promotion, in spite of the very vocal tourism company organizations requesting state aid.

Marasoiu responded that, after the national brand was created last year and after a strategy for the sector was developed this spring, the government has begun creating a "coherent plan," to unfold over three years, financed entirely using European funds.

Official data showed tourist arrivals in Romania rose 13.2% in the first quarter compared with the year earlier period, to 1.12 million, while the number of tourists accommodated was up 12% on the year, to 2.29 million. Residents accounted for 78.1% of total arrivals at accommodation establishments in the first quarter, while foreigners made up for the remaining 21.9%.