Suspending holiday vouchers or replacing them with money can cause a 35%-50% drop in domestic tourism receipts, and tourism would be thrown back 10 years, the National Association of Tourism Agencies (ANAT) announced in a press release ).
20% of those who now receive holiday vouchers will no longer be able to afford to go on holiday
ANAT representatives believe that the direct impact of the elimination / suspension of holiday vouchers or the alternative granting of money will cause a 35%-50% decrease in tourism receipts. More precisely, 20% of those who now receive holiday vouchers will no longer be able to afford to go on holiday, while another 20% will most likely go abroad. Also, considering that the beneficiaries of the holiday vouchers also spent additional amounts to the 1.450 lei (with an average of 1.400-1450 lei spent in addition), the negative impact will be all the greater.
The total impact of this possible measure would cause domestic tourism to collapse by 50%. Unfortunately, most of the options for amending the legislation regarding the granting of vouchers that the representatives of the tourism industry have become aware of are harmful for Romanian tourism. The government is circulating a series of anti-tourism measures that would bankrupt many companies.
"Transforming holiday vouchers into cash would be a big mistake. No objective would be achieved, neither to help specific social categories, nor to ensure that the money is spent exclusively on certain products/services, nor that the money remains in Romania . The World Bank has requested that there be no granting of cash amounts with tax facilities. In Belgium, where an attempt was also made to transform vouchers into cash, the idea was abandoned as it was considered discriminatory, according to the decision of the Council of State. Holiday vouchers have stimulated demand for tourism services in Romania . Their elimination would certainly lead to a decrease in the number of tourists who choose to travel to the country and, implicitly, to a decrease in income for the tourism industry. It would basically throw Romanian tourism back 10 years ," says Adrian Voican, vice president of ANAT.
The example of Belgium on holiday vouchers
In the case of Belgium, it was considered that by granting the counter value of the vouchers in cash, they will acquire the legal status of a normal salary, which, however, will not be fully taxed, like any salary. It is discriminatory for part of the salary to be taxed more or less at the discretion of the employer. The Constitutional Council of Belgium ruled, by Decision no. 62.233/1/3 of November 14, 2017, that the measure of replacing meal vouchers by granting them in cash and under the same fiscal conditions is constitutional only to the extent that all employees would benefit from such a facility. Otherwise, the principle of fairness would be violated. ANAT campaigned with a majority of the Senate for granting vacation vouchers to private sector employees as well.
All employer, union and public organizations in the hospitality industry strongly disagree with the implementation of a cash alternative to vouchers, regardless of voucher type. Romania must continue those public policies that have proven their effectiveness over time, by no means give up on them.
ANAT and the list of negative aspects of the disappearance of holiday vouchers
According to ANAT, the granting of holiday vouchers led to an increase in the number of authorized accommodation structures from 6200, as they were in 2006, to 20.000, as they are today. Which means more than tripling their number. Also, holiday vouchers have determined, in parallel with foreign investments, and the development of international chain hotels, Romanian investments of hundreds of millions of euros annually in the last 8-10 years.
According to ANAT, here is the list of negative aspects of the disappearance of holiday vouchers
► Decrease in demand for tourist services. Holiday vouchers have stimulated the demand for tourist services in Romania. Their removal could lead to a decrease in the number of tourists choosing to travel to the country and, implicitly, to a decrease in income for the tourism industry.
► Negative impact on accommodation and restaurants. Many tourists use the holiday voucher to pay for accommodation and meals in local hotels and restaurants. Eliminating this benefit could negatively affect business in these sectors, especially during peak periods, such as the summer season or holidays.
► Loss of competitiveness in tourism. Romania used holiday vouchers to become more attractive to tourists. Removing this benefit could make the country less competitive compared to other tourist destinations in Europe.
► Impact on employees. Employees benefited from the holiday vouchers as a reward for their work and as a way to afford holidays in Romania. Eliminating this benefit could hurt employee satisfaction and morale.
► Decrease in employment in tourism. If the tourism industry suffers due to reduced demand, there is a risk that some jobs in this sector will be affected, which could lead to unemployment and further pressure on the economy.
► Decrease in tax revenues. The government obtained tax revenues from the holiday vouchers, by taxing it and the expenses incurred with it. Eliminating the vouchers could lead to a decrease in these tax revenues.
► Impact on the development of domestic tourism. Domestic tourism was stimulated by holiday vouchers, the pro-tourism policy attracted many significant international investments, chain hotels, also contributing to the development of lesser-known areas and the diversification of the tourist offer in the country. Removing them could affect development and investment over a long period.
