Greek Hoteliers Strongly Oppose Increase in Municipal Levy

Hellenic Hoteliers Federation President Yiannis Hatzis.

Hellenic Hoteliers Federation (HHF) President Yiannis Hatzis recently voiced strong concerns over reports that the Greek government is considering an increase in the levy paid by hotels to municipalities.

“Now, more than ever, we must protect the competitiveness of the country’s tourism sector. Unfortunately, the opposite seems to be happening,” Hatzis said in a statement. He noted that just a year after the hotel industry was burdened with the climate resilience tax, the Greek Interior Ministry is reportedly considering increasing the municipal duty (known in Greek as “τέλος διαμονής παρεπιδημούντων”) paid by hotels to municipalities, potentially restoring it to pre-2009 levels. It is reminded that the increase of the specific duty was first mentioned in April.

In a social media post, Hatzis expressed his disappointment over this potential development, emphasizing that the hotel industry is “once again the only sector being asked to pay the price for the success of Greek tourism”, while other sectors benefit without bearing the same burden.

Hatzis also expressed concern about the long-term impact the fee increase could have on the viability of hotels, particularly small and family-run businesses, which make up about 8,000 of the total 10,500 hotels in Greece. These smaller establishments are already struggling to compete internationally due to limited access to banking and investment programs. He warned that such a policy could undermine the competitiveness of the Greek tourism product and the broader economy.

Furthermore, the federation’s president highlighted that despite an increase in tourist arrivals to Greece this year, revenue per visitor has declined, a trend confirmed by data from the Bank of Greece.

Hatzis pointed out that 2019 remains the benchmark year for Greek tourism in terms of real GDP, with recent data showing a 13 percent drop in real average per capita spending compared to 2019.

Addressing claims that the hotel industry received significant support during the Covid-19 pandemic, Hatzis underscored that “the assistance provided was proportional to the industry’s contribution to the economy and employment”. He emphasized that hotels are “now giving back multiple times the support they received” and are simply asking to be “treated fairly” and not subjected to “punitive policies”.