Another innovation – room booking on hotel website to be possible in future


December 4, Fineko/abc.az. Only 2% of hotel revenues in Azerbaijan are directed for income tax.

ABC.AZ reports that the statement was made by Elgyun Mammadov, the head of the workgroup on government relations, at the meeting of the 2nd General Assembly of the Azerbaijan Hotels Association (AHA) in Baku.

According to Mammadov, 65% of mid-level hotels’ income in Azerbaijan is formed due to room reservation, 25% due to nutrition, and 10% due to other services.

Mammadov points out that the ratio of net profit of such hotels to their income does not exceed 6%: "Hotels direct 40% of income for the wage fund, 25% for other funds, 10% for sales operations, 9% for depreciation, 8% for sales operations, and 2% for profit tax. The rest of them here makes up only 6%. This figure also gives to businessmen the key to keep the hotel open or make it do other work."

Firuz Suleymanov, the head of the AHA workgroup on tourist outlets & products, noted that in the future it will be possible to book a room on the website of all hotels: "Hotels should take into account the wishes of tourists. We often hear that tourists from China want less fatty food and tourists from India more spicy food."