A compulsory charge would increase transparency, he added.

He said the association is negotiating with state tourism promotion agency Magyar Turisztikai Ügynökség on lowering the VAT on accommodation from the present 18% to 5% and adding a 1% marketing contribution.

The biggest problem in tourism nowadays is the labour shortage, which has reached the executive level, Flesch said, adding that the only way to fight it is higher salaries.

He said employers could cover higher wages from savings on lower VAT and from the compulsory service charge.

Source: Hungary Around the Clock

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