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World video travel guide
“Stop taxing Tourism” WTTC urges Portugal
“Portugal is going through a difficult economic period, but government at all levels must avoid taxing tourists as an easy way to raise funds. This will be counterproductive in the long-term by harming the competitiveness of the Travel & Tourism industry. The dramatic increases in VAT imposed on golf, and food & beverage, added to the proposed introduction of a culture tax, plus the possible Algarve tourist tax, are all measures that will damage tourism”
This is the message delivered by David Scowsill to the annual conference of Associação Portuguesa das Agências de Viagem e Turismo (APAVT) in Coimbra.
Portugal is more dependent on Travel & Tourism than most other countries. The industry contributed a total of €26.2 billion to Portugal’s GDP in 2011 - 15.2% of the total GDP. It also supported 866,500 direct, indirect and induced jobs, which equates to 17.8% of total employment. Spending within Portugal by international tourists for both business and leisure trips - equalled €10.3 billion in 2011, or 17.3% of total exports.
David Scowsill continued: “Travel & Tourism is a vital contributor to the Portuguese economy and a force for economic development. At a time of economic uncertainty and high unemployment it is even more important that this vital industry should be allowed to contribute to economic growth and job creation, without being burdened with additional taxes which will result in the opposite effect.
“I am confident that common sense will prevail. The President of the Portuguese Republic endorsed the Global Leaders for Tourism campaign by accepting a joint letter presented by United Nations World Tourism Organisation and WTTC, asking him to acknowledge the contribution made by the industry in facing today’s global challenges. President Anibal Cavaco Silva’s acceptance of our open letter means that over 40 world government leaders have in the last 12 months voiced their support for the Travel & Tourism sector.”
