Heraklion Hoteliers Question Greek Government’s Tourism Announcements

Hoteliers in Heraklion, Crete, are raising concerns about recent tourism-related announcements made by the Greek government during the Thessaloniki International Fair (TIF).

In a meeting on Friday with regional officials, MPs Lefteris Avgenakis and Giannis Kefalogiannis, representatives of the Heraklio Hoteliers Association emphasized issues such as the increase in the climate resilience tax and the municipal levy (known in Greek as “τέλος διαμονής παρεπιδημούντων”), which is paid by hotels to local municipalities.

According to the hoteliers, these increases are “unjustified” and place an “excessive burden” on the hospitality sector.

The association also expressed frustration that, despite repeated requests, they have not received sufficient information on how the funds collected from these taxes are being utilized.

Furthermore, the hoteliers argue that the newly announced measures appear to prioritize boosting state revenues rather than directly supporting the tourism industry.

Photo source: Heraklion Hoteliers Association

In addition to concerns over the increases in the Climate Resilience Tax and the municipal levy, several other key issues were discussed during the meeting:

– Spatial framework for tourism: According to the association, there is a need for urban planning to ensure the sustainable development of tourism on Crete, particularly in light of the expected opening of the island’s new airport in Kasteli in 2027. Moreover, the hoteliers underline that the municipalities of Hersonissos, Malia and Kydonia should be excluded from the “Controlled Tourist Development Areas” category.
– Fair competition in hospitality: The hoteliers said that all hospitality accommodations should be treated equally by the authorities, as unequal treatment allows for unfair competition within the sector.
– Beach regulation laws: The hoteliers raised concerns over Law N5092/24, which governs beach usage, particularly the severe fines ranging from 150,000 euros to 300,000 euros that can be imposed even for minor violations.
– Lack of skilled labor: Highlighting that the shortage of well-trained personnel is a pressing issue, the hoteliers suggest solutions for improved training and initiatives to attract more workers to the tourism sector.
– Infrastructure development: The hoteliers highlighted that the urgent completion of the “Northern Crete Axis Road” and other key road infrastructure projects is critical, as the delays are hampering the island’s economic development and creating road safety issues.
– Heraklion Airport infrastructure: The hoteliers expressed concerns over the inadequate infrastructure at Heraklion Airport “Nikos Kazantzakis”. They emphasized that the lack of even basic facilities is damaging the island’s image and called for immediate improvements.

Heralkion International Airport.

– Water resources and pricing: The limited availability of water and potential increases in water prices were also identified as concerns.
– Delays in processing foreign worker documents: The hoteliers stressed that government delays in processing paperwork for workers from non-EU countries are causing staffing issues for the industry.
– Digital work card system: While the introduction of the digital work card system is seen as a positive step toward reducing illegal employment, the hoteliers argued that it does not take into account the specific needs and “emergency situations” faced by the tourism industry.

During the meeting, the hoteliers urged the MPs to convey these critical issues to the government and to support their proposals aimed at resolving the challenges currently impacting tourism in Crete.