Regulatory and Legal Affairs

📝 HOTREC, Ceemet, the European Banking Federation, and WEC-Europe urge the EU to simplify and enforce the social acquis. One year after the European Commission's agenda to simplify rules, the social acquis now includes 70+ legal acts, creating complexity for SMEs, particularly in hospitality. They emphasize simplification should be ongoing and not deregulation, and stress enforcing existing rules over creating new ones. HOTREC aims to boost competitiveness and employment in Europe.

📈 MEP Niels Flemming Hansen, from Denmark and member of the EPP Group, highlights the crucial role of SMEs in Europe's hospitality sector. He emphasizes simplifying EU rules and reducing red tape to aid SME success. Key challenges include skill shortages and rising costs, calling for digital “one-stop-shops” for compliance. Looking towards 2026, he advocates for digitalization and sustainability as business opportunities, encouraging use of EU funding for green investments to maintain competitiveness and job creation in the sector.

💸 UK: On November 26, 2025, Chancellor Rachel Reeves announced the Autumn Budget, addressing a £20 billion gap with £26 billion in tax hikes and new measures like a sugar tax and overnight stay tax. From April 2026, the National Living Wage rises to £12.71, adding £1.4 billion to hospitality costs. Business tax rates cut for 750,000 properties, offset by higher taxes on properties over £500,000. Inflation to hit 3.5% in 2025. Income tax thresholds frozen until 2030-31.

🛫 England's mayors are empowered to introduce an overnight accommodation levy to boost transport, infrastructure, and tourism. The levy applies to hotels and similar accommodations, with regional discretion on implementation. A 12-week consultation ends on 18 February 2026. Proponents include mayors from London, Manchester, and the West of England, emphasizing local service reinvestment. However, industry critics warn of increased travel costs, reduced competitiveness, and added pressure on the heavily taxed UK hospitality sector.

💰 HOTREC's 2025 study warns that a 1-point VAT increase could result in €8 billion sales losses and over 100,000 job cuts in the EU, Iceland, Norway, and the UK. Standard VAT rates may lead to 1 million job losses and a 0.5% GDP drop. Amsterdam could see hotel taxes top 33% by 2026. HOTREC urges against sharp tax hikes, advocating for coordinated policies to protect SMEs and rural economies.

📈 Hotels face increased guest acquisition costs due to privacy restrictions and transparency standards as of November 24, 2025. Privacy rules hinder tracking, while rising media costs boost cost per acquisition. Regulations like third-party cookie loss demand strategic shifts towards first-party data, SEO, and compliance. The Cendyn report highlights that hotels must adapt to a more regulated marketing environment, focusing on direct engagement and channel consistency to maintain trust and manage costs effectively. Read Cendyn's full report for more insights.