VAT reduction 2010

Dear visitors,

due to the reduction of the value added tax rate on January 1st in Germany, we received several requests to minimize our room prices. We hereby want to comment on this matter.

Within the bounds of competitiveness on the international and national market, the hotel industry and gastronomy in Germany was disadvantaged for a long period of time.
The majority of the European countries have already installed reduced value added tax rates for the hotel industry. Therefore these countries, e.g. Austria, were in a good position to invest in their enterprises and stay competitive.

This was almost not possible in Germany. Due to the reduction of the value added tax rate to 7% we are now in the lucky position to invest in our house for our guests. We are able to strengthen the regional manufacturers and craftsmen and create a much more comfortable and pleasant stay for you.

If we would reduce our prices, as requested by some, the wished for effect – investing in our hotel for the good of our guests and assigning regional manufacturers and craftsmen to strengthen the economic cycle – would deflagrate.

Furthermore this reduction of the value added tax rate gives us the opportunity to hold our prices on the same good level as they are today and invest in our hotel, even though the energy and additional costs will rise in 2010.

We would be very happy if we could still welcome you in our house in 2010.

Anne Frieben and the team of the Hotel Karsten