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Competitiveness of Europe
Tourism is a continuously growing industry in Europe and an essential one for the EU economy and the
economies of most EU Member States. The hospitality industry contributes around 3,7% to European GDP.
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Tourism for many EU countries is one of the key pillars of the economy. In Greece, tourism directly contributes
with 7,6% to the national GDP, which scales up to more than 18,5% taking the multiplier effects into account.
THE BENEFITS OF LOW VAT IN THE
HOSPITALITY SECTOR FOR THE EUROPEAN
ECONOMY
Contribution of Travel and Tourism to GDP
Country
Direct contribution to GDP
Total contribution to GDP
Austria
5,5%
15.2%
Belgium
2,5%
6,1%
Bulgaria
3,3%
12,1%
Czech Republic
2,5%
7,7%
Croatia
10,1%
23,2%
Cyprus
6,4%
19,3%
Denmark
2,0%
6,9%
Estonia
3,9%
15,5%
Finland
2,1%
6,3%
France
3,7%
9,1%
Germany
3,9%
8,9%
Greece
7,6%
18,5%
Hungary
4,0%
10,4%
Iceland
8,2%
27,2%
Ireland
2,2%
8,1%
Italy
4,2%
10,2%
Latvia
4,1%
9,0%
Lithuania
1,7%
4,5%
Luxembourg
1,8%
5,1%
Malta
15,1%
27,7%
Netherlands
1,8%
5,5%
Norway
3,2%
7,8%
Poland
1,7%
4,3%
Portugal
6,4%
16,4%
Romania
1,3%
5,1%
Slovakia
2,4%
6,1%
Slovenia
3,6%
13,0%
Spain
5,8%
16,0%
Sweden
2,5%
9,6%
Switzerland
2,1%
7,6%
Turkey
5,0%
12,9%
United Kingdom
3,7%
11,2%
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HOTREC - Report on the benefits of low VAT on job creation and competitiveness in the European Union
Source: World Travel and Tourism Council country reports 2016