The recent announcement of VAT cuts in restaurants and cafés throughout France will attract British tourists back to the country and offsets the weakness of the Pound against the Euro.

Since Wednesday, VAT on all restaurants and cafés in France has been slashed from 19.6 per cent to 5.5 per cent – a big saving for consumers.

This will translate into a saving of approximately 10 per cent, meaning a meal typically costing €15 (£13) will be reduced to around €13.20 (£11.40). The move aims to boost consumer spending in the busy summer period throughout France.

Alongside restaurants, Pierre & Vacances (or PV-Holidays) has matched the VAT cut with its own Eurobuster Campaign, offering holidays at last summer’s rates – with savings ‘of up to 45%’.

The VAT cuts will be particularly welcome during the ski season, as cash-strapped Brits look for more affordable options in the Alps.

Nicolas Rochedy who runs the two Michelin-starred Chabichou hotel and restaurant in Courchevel, in France’s Three Valleys, says, “It is important for us to support British skiers, particularly in the current climate.

“From December, we will be passing on the VAT reductions to all of our customers.” Although some products are exempt from the cut, such as alcohol, skiers will find that their lunchtime meal, bottled water and cup of coffee will be less than last year.

Cathy Rankin, UK sales and marketing manager for P&V adds, “We are proactively trying to offset the effects of the weak pound by introducing ‘Eurobusting’ offers of up to 45% off all of our properties in the summer break.

“The VAT cut in restaurants compliments this as many of our customers rely on good value local restaurant food during their stay.”

The P&V offer is based on Euro to Sterling exchange prices during summer 2008 (£1 to €1.28), when holidays were around 22 per cent cheaper than earlier this month (£1 to €1.05).

The offer is available on all P&V properties, and all dates, including the school summer holidays, up until November 2009.

Discounts can be combined with any other P&V offer currently available, including the 15 per cent early booking discount or the 20 per cent discount on stays over two weeks.

P&V is the number one provider of holiday homes, villages and hotels all over France. It offers self-catering and hotel holidays in France, Spain, Italy, Morocco, Tunisia, Switzerland and the Caribbean through its five brands: Pierre & Vacances, Maeva, Residences MGM, Latitudes Hotels and Adagio City Aparthotel.

Full details here.

Please use promotional code 8258.

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