Hoteliers in Greece Urge Gov’t to Reconsider Tourism Taxation

Newly-elected Hellenic Hoteliers Federation (POX) President Ioannis Hatzis (center) with Greek Tourism Minister Olga Kefalogianni and SETE President Yiannis Paraschis. Photo source: POX

Angered hoteliers in Greece are calling on the government and relevant ministries to reconsider the possibility of imposing taxes on tourism activity.

In his address to a national hotelier association presidents council attended by Tourism Minister Olga Kefalogianni and Greek Tourism Confederation (SETE) President Yiannis Paraschis over the weekend, newly-elected Hellenic Hoteliers Federation (POX) President Ioannis Hatzis said it was time to address issues impacting the sector that were still unresolved.

Hatzis added that although the country’s hotel owners had suffered dozens of blows after Covid-19, floods, fires and the cost-of-living crisis, the sector had repeatedly supported the ailing Greek economy.

The industry, he said, has over the past 20 years called on the government to reduce VAT on accommodation. “I remember that this was a pre-election commitment,” he said, and went on to add other POX requests, including the exemption of hotels from the supplementary ENFIA property tax and the equal treatment of individual businesses.

Additionally, he said, there was no organized promotion and management of destinations or land use and coastal development plans and the need to substantially upgrade tourism education was now urgent.

Hellenic Hoteliers Federation President Ioannis Hatzis. Photo source: POX

Hatzis’ comments come in response to recently announced regulations concerning short-term tourist rental activity and the introduction of an extra 1.5-euro overnight charge per day applicable to all forms of tourist accommodation, revenues from which will go into a specially created emergency fund for natural disasters.

Hatzis said the new rules were “outdated” and “fail to address the intensifying housing problem”, among others. POX has been calling for public deliberation of the draft law.

Lastly, representing Greece’s hoteliers, Hatzis said measures concerning the sector had been taken ad hoc and randomly, without planning and dialogue.

Speaking to POX members, Kefalogianni said the sector was now in the position to play a leading role in tourism thanks to the experience, insight and resilience it has displayed over time.