Council in Cassel city authorizes tax for tourists - Overnight tax in Kassel city is affirmed by the city council.
Get ready, travelers—Kassel is set to introduce a tourism tax as of July 1, 2025. The city council unanimously voted last Tuesday to institute this controversial tax, confirmed by a spokesperson to the German Press Agency.
For years, Kassel has been mulling over this tax, aimed at funding local tourism and cultural infrastructure. The city anticipates securing around three million euros in annual revenue from this new levy.
Starting next year, establishments offering accommodations, such as hotels, pensions, and commercial and private providers, will be charged a 5% tax on the net overnight price for each room per night. Providers are responsible for remitting this amount to the city. The initial plan was for a fixed rate of three euros per person per night, but the start date was pushed back to allow businesses more time to adjust.
Youth hostels, school trips, and group travels for individuals under 18 will remain exempt from the tax.
Criticism from the Business Sector
Industry and business associations have objected to this tax, expressing concerns over the financial strain for guests and considerable administrative efforts. Oliver Kasties, the deputy managing director of the Hotel and Restaurant Association Dehoga Hessen, underlines the need for hotels to update their accounting systems, re-negotiate existing contracts, and manage additional bureaucracy.
The local chamber of industry and commerce also shares this critical view, apprehensive of potential decreases in bookings and negative consequences for the gastronomy, retail, and taxi sectors. Cities like Offenbach and Darmstadt, which have also implemented tourism taxes, have made efforts to keep the rates at 2% and use the revenues efficiently to stimulate local growth.
While data specific to Kassel's situation is not readily available, it's important to consider that the impact on local businesses and tourism can vary depending on factors such as tax rates, revenue allocation, and regional economic conditions. Keep an eye out for future updates and government reports to gain a clearer picture of the potential effects of the tourism tax in Kassel.
The new overnight tax in Kassel, set to be introduced in 2025, has received criticism from the business sector, primarily due to financial concerns related to the tax's implementation and potential administrative efforts required for compliance. Additionally, the city's community policy, aimed at funding local tourism and cultural infrastructure through vocational training programs, could significantly impact the business, finance, lifestyle, and travel sectors, particularly in the accommodation, gastronomy, retail, and taxi industries.
