Greek Hoteliers: Excessive Taxes Hurt Competitiveness

Hellenic Hoteliers Federation Yiannis Hatzis speaking during the federation’s general assembly in Athens.

The Hellenic Hoteliers Federation (POX) recently underscored the detrimental impact of excessive taxation on Greek hotels amidst intense international competition.

Speaking during the federation’s general assembly held in Athens on Thursday, the federation’s president, Yiannis Hatzis stressed that the government’s primary focus should be on enhancing competitiveness rather than undermining it.

“Instead of witnessing a reduction in VAT on accommodation, we are now burdened with the climate resilience levy,” Hatzis remarked.

It is reminded that in December 2023, the Greek government introduced a new law to replace the previous “stayover tax” with a climate crisis resilience fee. The revenue generated from this fee will be directed into a dedicated emergency fund for natural disasters. The fees are variable, depending on the category of accommodation and the season.

Table showing the climate resilience levy charged on Greek hotels depending on their category. The charges have been increased significantly for the season running from March – October. The fees are per room per night. Source: GBR Consulting

‘We feel penalized for our success’

Hatzis emphasized, “Often, we feel penalized for our success”. He further highlighted that the hotel industry saw a 13 percent increase in job creation in 2023 compared to the previous year.

The federation’s president then called for the state to shield the Greek hotel sector so that it can continue to increase profits in the economy and in society.

Hellenic Hoteliers Federation Yiannis Hatzis. Photo source: Greek Travel Pages (GTP)

Moreover, in response to recent remarks regarding overtourism in Greece, Hatzis stated that such comments are often used to mask the insufficient infrastructure or the diminishing performance of existing facilities.

“It is against common sense to talk about limiting demand instead of upgrading supply, so that the destinations would be able to properly manage their resources,” he noted, highlighting that policies that do not take into account hoteliers can be neither productive for tourism, nor useful for the course of the country.

Former SETE president, Yiannis Retsos. Photo source: Greek Travel Pages (GTP)

Moreover, during the general assembly, the former president of the Greek Tourism Confederation (SETE), Yiannis Retsos, responded to recent statements made by Athens Mayor Haris Doukas, suggesting that hoteliers should contribute a percentage of their turnover to address the city’s needs.

“I wonder, how did the previous mayor of Athens manage to clean the city with the same revenue, and now it’s deemed insufficient? What has changed this year?” he questioned.

According to the Athens – Attica & Argosaronic Hotel Association, Greek hoteliers are already paying 23 different taxes.

Addressing the general assembly as well, SETE Vice President Agapi Sbokou stressed that imposing excessive taxes on tourism is frequently regarded as the “easy solution” for problems beyond the sector’s responsibility.

SETE Vice President Agapi Sbokou. Photo source: Greek Travel Pages (GTP)

During her speech, Sbokou referred to the sector’s contribution to Greece’s economy.

“The direct contribution of the tourism sector, including inbound and domestic tourism as well as investments, totaled 28.5 billion euros in 2023, equivalent to 13 percent of the national GDP,” she stated.

Sbokou further noted that the sector is currently at a critical juncture, with businesses contending with numerous challenges, including a constantly evolving landscape marked by unpredictable geopolitical developments.

“Added to all this is the tendency to overtax the tourist product,” SETE’s vice president stressed.