Bookings made this summer will not be affected, as operators will absorb the tax increase. However next year's prices will be affected by the VAT rise on accomodation from 8% to 10%. It is not only the tax on accommodation that has been increased, VAT on food and drink has increased to 10% and on cigarettes, sunglass and clothing to 21%. These increases are thought to be part of measures being taking by the government to aid their struggle to meet public deficit targets, which were recommended by European Commission and the International Monetary Fund.