I presume VAT applies to hotel stays in the same way it does to any other services? (I've been most aware of this in Turkey, where the rate is prominently posted at reception - "KDV Dahildir"). But within the EU you can presumably claim it back if it's a business-related expense as part of your tour. If you come from a country that isn't part of the EU VAT system, your accommodation will cost 25% more. And conversely - for an EU-based act, touring the UK gets more expensive.