The city of is set to increase its local tax, known as Ortstaxe, to 8 percent starting this July. While a jump to 8.5 percent was initially planned a year ago, the rate was first moved to 5 percent. The city now expects to generate 94 million euros.
Finance City Councilor Barbara Novak noted that 80 percent of this tax is paid by foreign guests. However, local leaders like Felix Neutatz of the and Alexander Ipp of the Hotel Association expressed concerns for the 450 hotel businesses.
The tax hike comes as Vienna's revenue per room fell three percent last summer, despite a four percent rise in urban tourism across Austria. Total hotelier contributions reached 41.7 million euros, placing Vienna's rates near those seen in cities like Amsterdam.
