Brussels hotels see occupancy decline in 2025

Occupancy rates in the Belgian capital’s hotels are falling and the Brussels Hotel Association (BHA) is sounding the alarm, with chairman Rodolphe Van Weyenbergh warning that "all signs are flashing red".

“Contrary to the hope raised at the end of the coronavirus crisis, the recovery for hotels has stalled and is now in danger of coming to a complete halt,” said Van Weyenbergh.

According to the available indicators, hotel activity is still below the level seen before the pandemic in 2019, with the occupancy rate currently standing at 70.7%.

“This is significantly lower than the 74.7% in 2019,” Van Weyenbergh said.

“This figure confirms the lack of growth for the hotel sector, which has been suffering for five years from unfair competition from illegal accommodation, which represents almost 25% of the market.”

Revenue per hotel room also remains virtually unchanged and is not increasing. Van Weyenbergh argues that inflation was absorbed by the hotels, but was not passed on to customers in the price of a hotel room.

The hotel sector also fears the increase in VAT on hotel rooms to 12%, in combination with the regional city tax. According to the BHA, this “not only affects the customer, but also disrupts the value chain of the hotel sector, its suppliers, operators and subcontractors.”

In other European countries that have implemented similar increases, the measures systematically led to a decline in city breaks, a loss of attractiveness for business travel and conferences, and a lasting deterioration in the competitiveness of the destinations concerned, according to the association.

The BHA wants to show the federal and regional governments the seriousness of the situation, adding that “without a rapid change of course, the entire Brussels tourism chain is at risk of weakening”.

The organisation is calling on governments to intervene in the face of what it considers to be alarming prospects for 2026.

The hotel sector is not the only one worried about new VAT increases, which were approved in the budget agreement reached at the end of November.

Most of the VAT increases are expected to come into effect in March 2026.

Campsites and furnished accommodation will also be affected, with VAT doubling from 6% to 12%. The increase applies to hotel stays, holidays in holiday homes, gîtes or bed and breakfasts, as well as the provision of camping pitches for tents or caravans.

A VAT increase from 6% to 12% will also apply to cultural, sports and entertainment facilities.

Gym membership fees will also increase, as will tickets for access to stadiums - for football, basketball and tennis matches, for example.

In the leisure sector, the doubling of VAT will apply to admission to museums, monuments, theme parks and adventure parks, saunas, bowling alleys, go-karting tracks, escape rooms, botanical gardens and zoos.

Street theatre, dance performances, opera and classical music concerts will not be affected by the increase, but the VAT rate will rise from 6% to 12% for cinemas, theatres, indoor concerts and festivals, magic shows, stand-up comedy and admission to exhibitions or conferences.

Existing exemptions for non-profit organisations will remain in place.

For takeaway food sales, there will be no increase in VAT if a dish can be kept for more than two days after preparation. If the use-by date is less than or equal to 48 hours, VAT will be 12%.

This applies to takeaway meals that are prepared, composed of several ingredients and ready to eat as they are without any further preparation other than reheating.

The measure applies to supermarkets as well as snack bars, grocery stores, butchers and bakeries. Delivery services will also have to take this VAT change into account.

Some examples of dishes or preparations affected by the change from 6% to 12% VAT include ready-to-eat or ready-to-heat pizzas and pasta, prepared sandwiches, mixed salads, poke bowls, sushi, soups and artisan ice cream sold over the counter.

The situation is unclear for coffees, smoothies and freshly squeezed juices, with talk of leaving breakfast items at 6%.

Certain foods, classified as luxury items, will remain at the maximum rate of 21%. These include caviar, oysters, crab and lobster.

Non-alcoholic beverages, offered "as part of restaurant and catering services", according to the legal text, benefit from a reduction in the VAT rate from 21% to 12%.

The coming weeks are likely to bring forth more questions and clarifications about these new measures, which are already causing protests.