Styria hoteliers warn higher overnight levy will cut business

Hoteliers and tourism representatives in Styria say a planned doubling of the overnight accommodation levy to 4.90 euros from June 2027 could reduce bookings and revenue. ORF reported that industry representatives were surprised by the plans of the FPÖ-ÖVP state government.

Johann Spreitzhofer, tourism and leisure sector chair at the Austrian Economic Chamber, said representatives had been told the levy would rise from 2.50 euros to 2.80 euros from December 1. The increase to 4.90 euros came as a surprise, he said.

Governor Mario Kunasek of the FPÖ has argued that Styria’s levy had been among the lowest third of those charged by Austria’s provinces. Accommodation providers, however, say the increase is disproportionate and expect it to hurt revenue.

Philipp Florian, a hotelier at Graz’s Parkhotel, said hotels might not be able to maintain their prices and could lose bookings. The combination of room rates and occupancy was crucial for businesses, he said.

The short notice has also complicated planning, Florian said. Companies have already negotiated or received prices for next year, leaving hotels to either seek adjustments or absorb the additional cost if prices have already been communicated to clients.

Spreitzhofer said guests were likely to spend less on additional purchases at hotels, a trend businesses were already seeing.