Travellers who are heading to popular coastal resorts in Spain will face higher prices as a result of an increase in the VAT rate.
Prices for holiday accommodation and food and drink in hotels and restaurants may rise as the VAT rate for the leisure industry climbs from 8 per cent to 10 per cent.
Mariano Rajoy, the Spanish Prime Minister, also confirmed that items including clothing and cigarettes will now be hit with a 3 per cent VAT increase, rising to 21 per cent from 18 per cent.
Independent hotels and tour operators have voiced concerns that the VAT costs will see many families struggle to afford their annual holiday to Spain.
For those journeying after August 1 2012, and booking hotels independently, the VAT increase will be added to bills during their break.
Package holidays that have been booked already are not affected by the increase, but the Spanish Tourism Commission has criticised the hike.
“The tourism sector regrets the government’s lack of sensitivity for a strategic sector that is key to kick-starting and accelerating Spain’s economic recovery,” it said in a statement.
It has been estimated that a family spending £1,000 on a Spanish holiday, including an independent hotel stay, as well as food and drink, would see their holiday spend increase by £20.
“Spanish hoteliers, bar and restaurant owners have bent over backwards to keep their prices down,” said Sean Tipton of the ABTA.
“Increasing VAT risks wasting a lot of their efforts. Customers always have the choice to go elsewhere for their next holiday.”
According to figures from the Spanish Institute of Tourism Studies sun-starved Britons make in excess of 12 million visits to Spain each year.
(Image: Philip Larson)
