Hoteliers Object To New Development Law

The new development law -effective as of 1 January 2011- lacks sectoral policy and will not benefit the tourism sector, the Hellenic Chamber of Hotels said last month in an announcement to the relevant ministries.

According to the chamber, the new development law does not promote a balanced distribution of resources among hotels in Greek tourism destinations as it indirectly promotes overcapacity of hotels in a few areas with high tourism demand.

The chamber specifically emphasized that it is “absurd” to equally subsidize investment for establishing new or expanding existing hotel units on Rodos and Mykonos on the same scale as islands such as Anafi and Kastelorizo.

In regards to tax incentives under the new investment law, the chamber stressed that the six-year tax exemption on profits in the hotel business will not bring the desired results, as “a hotel, after the first five years of operation, does not show appreciable gains.” The chamber also underlined the absence of legislation aimed at reducing “senseless” red tape.

The Confederation of Greek Entrepreneurs of Rented Rooms and Apartments (SEEDDE) last month protested against the exclusion of rented rooms and apartments from the new development law.

SEEDDE said it demanded from the Regional Development Ministry to abandon its “short-sighted view on tourism” and involve all such businesses in new development initiatives.