Caretaker Government Is Preparing Measures to Support Tourism Sector Amid the Crisis in the Middle East

The caretaker government is considering a comprehensive package of measures to limit the impact of the crisis in the Middle East on the tourism sector. Will they include a new VAT cut for restaurateurs and compensation for the tourism industry?

Among the main compensatory measures is compensation for tourism companies.

The caretaker government is also examining the possibility of allowing tour operators to defer their obligations to customers whose trips have been cancelled due to the situation in Iran and the wider Middle East, with vouchers offered as compensation — similar to the approach taken during the COVID-19 pandemic.

Irena Georgieva, caretaker tourism minister: The measures can be grouped as follows: compensation mechanisms for energy and fuels, including caps and temporary reductions in excise taxes; however, it has become clear that excise taxes cannot be reduced, as they are already at their lowest levels in the EU. Regulatory changes—the tourism industry is insisting on a differentiated VAT rate for restaurants and the delivery of food and non-alcoholic beverages in restaurants."