Athens Hoteliers Angered by Mayor’s Proposal for Extra Taxation

Photo source: Municipality of Athens

Hoteliers are up in arms over a proposal made by Athens Mayor Haris Doukas last week concerning an extra tax that would help the municipality deal with the increasing cost of municipal services needed to meet the demand of millions of tourists during the peak months.

Doukas suggested that hotel enterprises operating in the Greek capital share a portion of their revenues with the city to meet the increasing costs during his participation in the 9th edition of the Delphi Economic Forum (DEF) held in Delphi last week,

Reacting to his comment hoteliers are arguing that they are already paying 23 different taxes and that they refuse to be subjected to any new levies.

Athens Mayor Haris Doukas speaking during the Delphi Economic Forum.

Among others, to support the municipality, Doukas proposed an existent municipal duty (known in Greek as “τέλος διαμονής παρεπιδημούντων”) be increased from 0.5 percent to 2 percent. The municipal duty is a levy paid by hotels to the municipality.

In response, Athens – Attica & Argosaronic Hotel Association President Labrini Karanasiou-Zoulovits said that it has always been the “easy way” to charge hoteliers for all the problems affecting the city or the country.

Hoteliers, she said, have repeatedly stood by the government in times of need offering their units for hospitality during fires, floods, and Covid-19 and paying 23 taxes in total, including the newly announced climate resilience tax going toward an emergency fund for natural disasters.

Athens-Attica and Argosaronic Hotel Association President Lambrini Karanasiou-Zoulovits.

It is reminded that the climate resilience tax is a fee charged on hotel guests for the daily use of rooms in hotels or lodgings. Starting this year and during high season (March – October) visitors to Greece staying at 1- and 2-star hotels are charged 1.5 euros; 3-star hotels 3.00 euros; 4-star hotels 7.00 euros; and 5-star hotels 10 euros. During November-February the tax is lower.

Athens-Attica hoteliers argue that short-term rentals are not charging their customers this tax. The association goes on to add that many Airbnb-style facilities remain unregulated and that the mayor has failed to include the millions of visitors to Athens who chose to stay in Airbnbs which have also contributed to the oversaturation of many neighborhoods in the Greek capital.

Hellenic Hoteliers Federation (POX) President Yiannis Hatzis echoed Karanasiou-Zoulovits, adding that the municipality should request from competent ministries to introduce restrictions on short-term rentals rather than hold hotels accountable.

“The hotel industry will not pay once again for the negative results of the state’s inability or unwillingness to establish a specific legislative framework for the operation of the short-term rental market,” he said, adding that the consequences caused by the unregulated operation of Airbnb-style rentals cannot be addressed with the imposition of  new taxes and fees on legally operating tourism enterprises.

Hellenic Hoteliers Federation (POX) President Ioannis Hatzis.

Doukas also met with Tourism Minister Olga Kefalogianni this week with whom he discussed the need to upgrade infrastructure in Athens which will in turn enhance the tourist product on offer.