Crete tourist guide

Greek hotel sector opposes tax hikes

2024-10-14 20:11:07

Last week we wrote about the planned increase in the so-called residence tax. Tourists in Greece have been paying this tax since 2018, and its amount depends on the category of the hotel or guesthouse and the length of stay. A significant increase in rates is planned from 2025, and the tax itself is to be transformed into a climate change resilience fee. The Greek government would like to draw from this money in the event of disasters caused by extreme weather changes, as well as to improve tourist infrastructure. The hotel industry, as you might guess, is not thrilled with these plans, and the president of the Greek Hoteliers Federation (HHF), Yiannis Hatzis, says directly that the hotel sector needs government support, not ever higher taxes.

The planned rates, which are to come into effect from April next year, were included in our previous article. So if any of the Readers would like to take a closer look at them, we will allow ourselves to refer to that news item: Even more expensive holidays in Greece .

Greek hotels are losing their competitiveness

The hotel industry in Greece is a significant contributor to public revenue, generating a direct impact of €10.5 billion on GDP and creating 225,000 jobs. Hotels play a key role, especially on the islands, strongly supporting the local economy. In the island regions, the hotel sector accounts for as much as 90% of regional GDP and 70% of tourism GDP. According to Yiannis Hatzis, government action should focus on protecting the competitiveness of the Greek tourism market, rather than imposing further charges on it.

The tourism sector in Greece is doomed to success. Geographical location, good ratings among travelers, safety, tasty cuisine and the country's unique character are a magnet that attracts more and more people year after year. Tourism also supports the stability of Greek import and export. However, this sector, on which Greece sits, cannot be unjustifiably burdened with additional fees, because they reduce the attractiveness of the tourist offer. New players are joining the current competition from southern European countries, who are trying to attract part of the tourist traffic with lower prices. Another euro that tourists will have to pay for the opportunity to spend their holidays in Greece may tip the scales of interest in favor of new destinations. The Greek government, on the other hand, would like to solve the country's financial problems with additional, increasingly higher taxes.

President of the Hellenic Hoteliers Federation Yiannis Hatzis. Photo source: HHF

Gosia,  2024-10-14 20:11:07

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