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Climate conference set records for December but could not save 2009 from being a poor overall year for the hotel industry

Despite record occupancy figures for December thanks to the COP15 conference, hotels nationwide experienced a dreadful 2009.

On Zealand, COP15 helped hotels achieve 433,000 overnight stays for the month. But the late-year surge did not keep the overall figures for 2009 from dipping from the previous year, as the region had 5,465,557 overnight stays last year compared to 5,768,495 in 2008.

Nationwide, overnight stays fell from around 10.9 million in 2008 to about 10 million last year – a drop of 8 percent. In 2007 that figure was nearly 16 million, clearly demonstrating the effects of the financial crisis on the business and tourism industry.

Prices of hotels in Copenhagen have been a major deterrent to would-be travellers to the nation’s top tourist city. A Saturday night stay in Copenhagen during February costs an average of around 850 kroner at a three-star hotel – just slightly less than London.

By contrast, prices in Rome for the same type of hotel run about 90 euros (670 kroner) on average, while in Prague and Amsterdam a Saturday night stay this month will typically set you back about 40 euro and 85 euro respectively.

Comments
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Heidi aka MissFuzzy   |2010-02-10 00:28:13
I am not all surprised, after trying to bid for Copenhagen hotel rooms on Priceline.com. They simply are non-negotiable, which is not a huge surprise to me, seeing how the country does business.
JFD   |2010-02-10 13:56:21
Once again, taxation is very relevant and not at all addressed.

This is a perfect example of taxation driving DK out of competitiveness. With a VAT of 25%, hotel rooms in DK never be competitive wit the rest of Europe (and North America).

Keep in mind that while while you as a consumer pay all of the 25% of the VAT directly, the "multiplier effect" of taxation in this country drives up the basic room rate well beyond what it should be in a more free market setting.

By implementing such a high blanket VAT tax, so much taxable tourism money is lost because it never comes to DK. The taxation addicts in Christianborgs seems to be too idiotic to realize this basic economic concept.

I would bet the farm that if the VAT in DK were to be dropped to the EU average of 19,2% that the state would actually bring in more total VAT tax revenue because the velocity of moeny would increase to an amount greater than what is lost through the reduction. The velcoity would increase simply because more things would be affordable to the average person and less people would buy foreign goods (i.e. trailers full of Slots and Coke Zero from Germany)

But who cares about that, just as long as we have "fewer millionaires and more welfare"
 

 

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