Greece Hospitality Tax to Hamper Small Hotel Upgrades

A new accommodation tax set to take effect next year is expected to put a damper on plans by smaller hotel units to renovate or upgrade and inhibit investments in tourism, according to Central Greece Region Deputy Governor Ioannis Kontzias.

Kontzias, who oversees tourism, sports and culture issues, said the new levy – the so-called “stayover tax” – to be imposed as of January 1, 2018, on hotels and furnished rooms/apartments for rent – will restrain hotel owners from taking measures to upgrade to a new category. It will be calculated based on the number of overnight stays and the category of the accommodation unit, ranging from 50 cents to four euros per room.

These units, Kontzias says, are already offering friendlier rates, while the tax will instead serve as a disincentive, turning away all potential investments in the sector including plans to upgrade existing units or set up new hotels.

Greece’s hoteliers are up in arms over the government’s decision to impose the new tax.

In the meantime, Kontzias said Central Greece regional authorities have already been implementing a far-reaching plan to promote the area’s tourism offerings and are seeing results primarily in the markets of Romania, Israel and Serbia.

At the same time, the region’s strategy includes combining traditional recreational tourism with alternative forms including gastronomy, health & wellness and adventure.