Greek Hoteliers Angered Over Climate Resilience Charge

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Greek hoteliers reiterated their calls on the government to reassess a newly announced climate resilience levy, arguing that it creates disparities and distortions as it fails to take into consideration the significant variations in price depending on hotel category and seasonality.

“Instead of abolishing the bailout law which foresaw the need for a stayover tax, the fee has now been increased by 100 to 200 percent,” said newly-elected Hellenic Hoteliers Federation (POX) President Ioannis Hatzis in a letter to Greece’s economy and tourism ministers.

Hellenic Hoteliers Federation (POX) President Ioannis Hatzis.

It is reminded that the stayover tax was introduced in 2016 as part of Greece’s bailout requirements during the debt crisis. POX underlines that the tax should have already been abolished. Instead, hoteliers argue, it has increased by as much as 200 percent and now called the “climate crisis resilience charge”.

The association goes on to add that the proposed levy will be very high in cases of hotels in the same category offering cheaper prices and during low seasons when room rates are lower.

“The specific measure therefore reduces the competitiveness of the hotel product and comes at the expense of the effort to extend the tourist season, while its application affects social groups, destinations and business categories that need the most support,” POX said citing an Institute of Tourism Research and Forecasts (ITEP) study according to which the charge will impact more than 25 percent of hotels offering the lowest prices.

ITEP President Konstantina Svinou presenting a study that shows the impact the “climate crisis resilience charge” will have on Greek hotels.

“Addressing the climate crisis concerns us all. Therefore, the effort should also be common. Taxation of the hotel product via the climate resilience levy must be limited to the approximately 136 million euros collected annually from the stayover tax,” said POX.

The country’s hoteliers go on to add that the government should also consider imposing similar charges on short-term tourist rentals which account for almost 28.6 million night stays a year and have a “significant environmental footprint”.