A dramatic increase in hotel taxes proposed by politicians in France is set to be avoided after being met with strong opposition from the tourism and hospitality sector, according to reports.
An amendment to France's draft budget had raised maximum hotel taxes to €8 euros (US $10.92) from €1.50 (US $2.05), in a bid to bring them more into line with other European cities including Berlin, Rome and Brussels.
The draft law proposed by the lower house of parliament would also have added an additional €2 (US $2.73) would have been added in the Ile-de-France region, which includes Paris, in order to fund public transport.
However, according to a report in newspaper Journal de Dimanche, the French Senate is now set to strike down the measure.
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The proposal had meen met with fierce opposition from the tourism sector with Accor CEO Sebastien Bazin warning that they could cut hotel margins and penalise tourism.
Meanwhile, a number of government ministers had also spoken out against the increases, with concerns that they could undermine efforts to boost the tourism sector.
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