Moncao - 7:19 am on May 14, 2006 (gmt 0)

I am personally glad they are doing this against wholesalers. For one, my family has a small villas resort which is not wholesaler (thank God) territory. The problem for us and others is two fold;

1) When we and others sell direct, we have to pay tax on the total room / villa charge to the local tax authority of course. Wholesalers by only paying tax on the "contract" rate are effectively enjoying a state tax sponsored discount. What is annoying is the wholesalers often claim their prices include xx% tax (local hotel rate) tax implying on the whole amount, but that is BS.

2) It is not just about tax, it is also about service charge. Wholesalers also tend to say "includes xx% tax and service charge", but their rates often do not include any service charge, and if they do then the same problem exists that the service charge % is on the contract rate. It is also likely that this service charge amount never makes the hotel staff’s pockets as the “twin book” hotel accounting system is endemic worldwide. This is fraud in my book and it is the US$50 a month hotel workers in 3rd world countries who are struggling to put rice on the family table they are screwing.

At the very least wholesalers should put "Net / Nett rate including all mandatory taxes and service charges (if any)". But in my book they should be forced to pay the same tax and service charge percentages as the hotels they sell rooms for.

We worked out that wholesalers have an unnatural and unfair discount of around 15% by doing what they do (not paying tax), and I say "I hope they lose their day in court". I believe tax should be applied and collected for the entire room amount and service charges left out of the equation and for the guest to pay at their own discretion at their hotel. Personally, when I travel, I refuse to accept mandatory service charges as they are not. I only pay service charges (and then I decide the amount) based on what I get.