Small Greek Hotels Face Prosecution

Some 1,500 small hotel units with a capacity of less than 10 rooms are threatened with prosecution by the Self-Employed Workers’ Insurance Organization (OAEE) for non-payment of contributions, according to the Hellenic Chamber of Hotels.

According to the chamber, despite the commitment made in November 2010 by Alternate Labor and Social Insurance Minister Yiorgos Koutroumanis that small hotel owners would be excused from insurance obligations to OAEE, already those in Greek regions have been prosecuted.

“The ministry’s apathy will lead to the inevitable decline of the hotel capacity that supports regional development and income,” the chamber said in an announcement.

The chamber said hundreds of small family hotels, under the pressure of the major disincentive of OAEE, are considering to convert into rooms-to-let or apartments as a way to be exempted from contributing to OAEE.

“This would result to lodges with lower standards and therefore an entirely different level of service,” the chamber warned.