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Thursday, 28.03.2024, 11:16
Lithuania's Viciunai Group may drop Hilton project
BC, Vilnius, 14.06.2017.Print version
Elimination of the VAT privilege for hotels, planned for 2018, may halt investments in the sector in Lithuania. Viciunai, a leading Lithuanian food group that is owned by Kaunas Mayor Visvaldas Matijosaitis, has already announced plans of halting the Hilton construction project in Vilnius, while other investors have not discarded their plans on new hotels, according to Verslo Zinios business daily information writes LETA/BNS.
"Design and other preparatory work is in progress,
however, if the administration raises the VAT for hotels significantly, we will
have nothing else to do than halt the project," Sarunas Matijosaitis, CEO of the group, said.
Domas Dargis, CEO
of Eika construction company planning
to build a Hilton Garden Inn on Gedimino Avenue in Vilnius, said the project
was already in the phase where discarding it was no longer possible. "We
will not stop, the hotel will be built, however, the development and
competition with neighboring countries is in question," Dargis told the
daily.