Bucharest, June 4, 2025 – The Federation of the Hotel Industry of Romania (FIHR), the first employers' organization in Romanian tourism, calls on the Romanian Government and political parties to take measures to support businesses and not an increase in taxation, which would lead to their bankruptcy.
The hotel industry is already facing the difficulty of keeping consumption afloat. The repercussions of economic and political instability, the failure to update tourism legislation in relation to the market context, the lack of promotion or digitalization to obtain real information about tourist circulation in Romania are visible. Thus, through an acute lack of public strategies to support the development of tourism in the medium and long term, with successive tax increases (it would be the third in the last three years only for tourism businesses), would greatly compress Romanian tourism, which is already below potential.
It is vital to develop public policies for tourism, in conjunction with the impact analysis of any changes in fiscal policies, for the following reasons:
- Europe supports tourism, does not burden it fiscally – reduced VAT is the rule, not the exception. Tourism benefits from differentiated VAT rates in most EU member states. The Romanian tourism product will decrease its competitiveness compared to other countries in Europe as a consequence of the tax increase, so that both domestic and foreign tourists will choose more competitive options or:
- Untaxed tourismThe VAT increase will stimulate evasion, on a background of unfair competition due to the short-term apartment rental regime, where no taxes or VAT are declared and paid (compared to hotel accommodations that currently pay a cumulative tax of approximately 301% of the legally collected rate).
ANAF and the Ministry of Tourism (MEDAT) do not yet have the necessary tools for effective control, due to the lack of fiscally directed public policies, of short-term rental activities for tourism purposes (short-term rentals), which constitute unfair competition, being devoid of taxes or legal requirements and which could mean a source of revenue for the national and local budgets. Similarly, we see how European countries are taking measures to regulate this tourism segment, regulating and obtaining reports from online platforms to combat the negative effects and to tax these businesses. - Major social impact – In an economy already affected by inflation, the further increase in the price of holidays will reduce domestic demand, including as a consequence of the partial elimination of holiday vouchers.
- Investment slowdown – The decrease in demand and the instability of tax legislation will cause investors, already few, to drastically reduce tourism investments (renovations and construction of new hotel units), which will be reflected in the worsening quality of the tourism product and services, the deterioration of the tourism infrastructure, negatively affecting the reputation of Romanian tourism.
Simona Constantinescu, FIHR president:
"A new tax increase without an impact study? It would be a fatal error, a blow below the belt that would throw us back, far from the intention of bringing additional revenue to the budget.
We cannot hope for improvement unless we have the courage to make a real change in strategy. Romania has an extraordinary opportunity to consolidate its position on the global tourism map, a chance to transform local communities and increase national well-being through tourism. However, this vital sector, a true diplomatic ambassador, is at a crossroads, and the political environment knows it.
We strongly urge you to abandon any intention to impose further increases in taxation and VAT on tourism. Such a decision would be a step backwards, a devastating blow to a sector already underfunded and under-promoted by public policies. These measures would only undermine our collective efforts, shaking to the core an industry that, with adequate support, has the potential to bring prosperity and visibility to the country.
Let's build together, not tear down. Support Romanian tourism and you will support economic development, job creation and a strong image of Romania in the world. It's time to invest in the future, not burden it!
Hoping that our proposal will be taken into consideration, we remain at your disposal for any further clarifications.".
About the Romanian Hotel Industry Federation (FIHR)
The Romanian Hotel Industry Federation (FIHR) is the first employers' organization in Romanian tourism, being present at national level in 28 counties and cumulating over 18,300 rooms in member hotel properties, representing the interests of the Romanian hotel industry for the last 35 years, through permanent dialogue with the authorities and the media, as well as with other associative entities at national and European level. FIHR is a member of the Tourism Advisory Council, the Tourism Alliance and the Concordia Employers' Confederation. It is affiliated with HOTREC at European level, an organization that represents the voice of hospitality in Europe. www.fihr.ro
