Local tax in Vienna postponed: Hotels breathe a sigh of relief and look forward to business!

Local tax in Vienna postponed: Hotels breathe a sigh of relief and look forward to business!

The planned increase in Vienna's local tax from 3.2% to 8.5% of the overnight stay will not be implemented until the coming summer season. The gastro portal reports this and expresses the relief of Felix Neutatz, the new specialist group chairman of the hotel industry in Vienna. The postponement will give hotels the opportunity to make better use of the upcoming winter and spring seasons. Bookings for the Advent weekends are already very good, and many hotels can look forward to loyal regular guests, some of whom already booked last year.

Yesterday Neutatz said that business surrounding the upcoming song contest also looks promising. The contracts have already been concluded for this event, which provides additional security. As part of the negotiations with the city, it was also agreed that the local tax can be shown separately on price lists and in contracts in the future. This is intended to help hotels create more transparency, as the current calculation method leads to comparison problems. Internationally, it is common practice to show prices without local tax, and Neutatz is optimistic that a good solution can be found.

Economic impact

The planned increase in local tax will take effect from December 1, 2025, with the additional costs of around 69 million euros having to be borne by the Vienna tourism industry. Dominic Schmid, chairman of the tourism and leisure sector at the Vienna Chamber of Commerce, warns that these additional costs cannot be passed on to the guests. Many hotels and tour operators have long-term contracts that take into account the old local tax, which further complicates the situation.

Conference organizers are particularly affected, as conferences are often planned years in advance, and the new tax could jeopardize planning here. According to Schmid, this could also affect guests' trust in the Vienna hotel industry. Nevertheless, the industry is looking to the future with hope, as revenue from local tax is expected to be at least 111 million euros in 2024, which represents a significant increase compared to the 42 million euros in the previous year.

By postponing the increase, Vienna tourism remains on track to make the best possible use of the upcoming seasons and ensure positive development. The hope is for a solution that is beneficial for both hotels and guests in order to strengthen the competitiveness of the Vienna hotel industry.

You can find more information about the background and details of the local tax here: GastroPortal, OTS, WKO.