Running a business in the tourism industry
Understanding the European tourism industry
The tourism sector plays a vital role in the EU economy, with millions of visitors travelling within and to the EU each year. It is essential to know and understand the key trends and characteristics of the European markets so that you can tailor your tourism services and products accordingly. According to Eurostat, the majority of visitors are EU residents.
For more facts and figures and to help you understand your market, use the following sources:
Key legal requirements for tourism businesses online
If you sell tourism services or products online — such as accommodation, guided tours, or transportation — you must comply with EU rules on e-commerce and distance selling. This includes rules on pricing transparency, customer contracts, and cancellation rights.
To get started or improve your online offer, see our guidance on digitalising your business — including setting up a website, promoting it online, using third-party platforms, and managing deliveries or fulfilment.
If your business hosts or manages user-generated content, such as reviews or listings, the Digital Services Act (DSA) may also apply. It introduces responsibilities around transparency, moderation, and tackling illegal or misleading content.
You are also required to comply with EU accessibility rules, which mandate that digital services like websites, check-in kiosks, and apps are accessible to persons with disabilities.
Finally, when handling customer data — including bookings, payment details, or marketing emails — your business must follow the EU’s general data protection rules (GDPR).
Consumer rights and the tourism industry
All businesses that provide services in the EU must comply with consumer protection rules. There are also specific rules that apply to the tourism industry:
- Package travel and linked travel arrangements (LTAs) - bundled services like flights and hotels, with specific consumer protections
- Timeshare contracts and long-term holiday schemes – rules ensure transparency and the right to withdraw
- Passenger rights – include compensation for delays and cancellations in transport (air, rail etc.)
Your responsibilities as an employer
As an employer in the EU, you must comply with EU-wide rules on employment terms and conditions, social security, health and safety, and equal treatment at work. These requirements apply regardless of the size of your business, or the type of employment offered.
The tourism industry often relies on flexible or short-term staffing, including seasonal workers, fixed-term contracts, and part-time roles. It's important to ensure these arrangements meet both EU standards and any national rules that may apply.
Learn more about your employer obligations and tourism-specific employment arrangements on the human resources pages.
Specific taxes for tourism
Travel Agents Margin Scheme (TAMS) for VAT
The Travel Agents Margin Scheme is a simplified VAT scheme for travel agents. It sets special rules for certain services purchased by travel agents and sold as a package (it could include transport to and from, destinations, accommodation and entry to attractions). VAT is only due in the EU country where the travel agent is located even though the services may be supplied in a different country. As a travel agent, you cannot deduct or reclaim VAT on supplies made to you. However, you will be only taxed on the profit margin that you make on the travel package supplied to your client.
Sample story
How TAMS works for travel agents
A travel agent charges EUR 2000 to a client for a four-day trip. The total amount that the tour operator is charged EUR 1500 for various services (hotel room, coach services, travel expenses) included in the package. Through the travel agents margin scheme, the travel agent will only pay VAT on EUR 500, which is the difference (or margin) between the cost of the services and what was charged to the client.
Reduced VAT rates
Under EU rules, an EU country may decide to apply reduced VAT rate for the supply specific types of goods and services. These may apply to the tourism services or products you provided.
Tourist occupancy tax
Occupancy taxes are decided at a local, regional or national level. They are collected on short-term residencies in paid accommodation. Occupancy taxes are typically charged per person, per night, or sometimes charged as a percentage of the room rate. In general, occupancy taxes make up a small proportion of the overall cost of accommodation compared with the cost of the accommodation itself and even the VAT that applies.
In many cases, occupancy taxes are payable in person and cannot be included in the pre-paid price of the accommodation. They are therefore particularly visible for travellers who must pay this tax separately to the service provider when checking out.
Tourist taxes to improve the sector
Tourist taxes are decided at a local, regional or national level and go towards improving the sector and/or the destination, such as:
- promotional activities
- infrastructure and tourism services (for example, an info kiosk)
- cleaning, and waste management
Tourist taxes for specific purposes
Some taxes are earmarked for specific areas or resources in the destination, such as:
- environmental or green taxes
- cultural heritage
- social purposes
Green taxes
Green taxes - taxes for environmental purposes are for conserving resources and for offsetting the possible negative effects of tourism. They create an incentive to protect and restore the environment and its resources, compensating for the tourist activity in each area. These taxes are decided at a local, regional or national level and help to:
- create funds so that destinations can invest in improvements such as environmental protection or resource recovery
- encourage environmental awareness amongst tourists about their use of the destinations resources
- promote a positive image of the destination and the companies based there by demonstrating their environmental concern
The EU ecolabel for tourist accommodation
To demonstrate your commitment to the environment, you may wish to join the EU ecolabel for tourist accommodation, the official EU certification for eco-friendly tourism services. It recognises accommodations that meet high standards for energy efficiency, waste reduction, and sustainable water use.
Businesses that obtain the ecolabel can benefit from enhanced reputation, greater appeal to eco-conscious travellers, and alignment with EU environmental goals.
Tourism and accessibility
Persons with disabilities have the right to access tourism activities and services on an equal basis with others. EU rules ensure accessibility of products and services for persons with disabilities across the EU.
If your tourism business offers any of the following, EU accessibility rules may apply:
- booking websites, e-commerce platforms or mobile apps
- ticketing and check-in machines
- customer service channels and digital communication tools
- transport services (rail, air, bus, and waterborne)
Why improve accessibility?
- fulfil legal obligations
- reach a broader client base : on average, every 2 disabled guests will bring one companion/personal assistant
- encourage off-season travel: some senior citizens and persons with disabilities prefer to travel in low season
- enhance your business’s reputation for inclusivity
How to meet accessibility requirements
- follow European standards on accessible ICT products and services or industry standards like the World Wide Web Consortium’s (W3C) guide to essential components for web accessibility
- train your staff to recognise and respond to diverse needs
Provide accessible physical infrastructure such as:
- access ramps, lifts and adapted bathrooms
- lower counters for customer office desks
- dedicated parking spots (EU parking card for people with disabilities)
EU funding for tourism
Use the Guide on EU funding for tourism to identify the financial support programmes that best fit your business needs.