Rhodes Hoteliers Call for VAT Cutback in the Dodecanese Islands

The Rhodes Hotel Association (RHA) is calling on Prime Minister Kyriakos Mitsotakis to reduce VAT for the Dodecanese islands in order to enable the region to grow.

In a letter to Mitsotakis, Rhodes hoteliers claim that reduced VAT is the only measure that will contribute to economic growth and strengthen both the local and national economies.

They argue that the Dodecanese islands are faced with a number of challenges hindering growth, including the high cost of transport of goods and services due to distance. The island’s hoteliers also cite the impact of last year’s fires, as well as the competition of neighboring countries.

“Reducing VAT will send out a clear message of support for the local economy and the development of tourism. The effect of reducing VAT rates according to estimates by the Chamber of Dodecanese will not exceed 80 million euros. Instead, benefits include increased turnover in hotel and other businesses from increased consumption,” hoteliers argue.

Last year, SETE reiterated its proposal for a unified 11 percent VAT charge across all services related to tourism and transport which would ensure the sector’s competitive edge.