Home Industry sectorsSea TourismCruise CLIA Calls for Delay on Greek Cruise Passenger Levy, Citing Industry Concerns

CLIA Calls for Delay on Greek Cruise Passenger Levy, Citing Industry Concerns

by GTP editing team
2 comments

The Cruise Lines International Association (CLIA) on Tuesday urged the Greek government to delay the implementation of the newly announced cruise passenger levy by one year, allowing time for discussions with cruise operators, municipalities, ports, and other tourism stakeholders.

CLIA’s request follows Greek Tourism Minister Olga Kefalogianni’s presentation on Monday, where she detailed the new levy set to take effect in 2025. The levy will apply to cruise passengers at Greek ports, with higher rates for those visiting popular destinations like Santorini and Mykonos.

CLIA has proposed that the levy be postponed until 2026 to allow for further consultation.

The new fee is part of the Greek government’s strategy to ensure that the economic benefits of tourism are reinvested into local communities and destinations. According to the Greek Tourism Ministry, the levy is expected to generate 50 million euros in revenue, which will be allocated to the municipalities of cruise destinations, the Ministry of Maritime Affairs for vital port infrastructure projects, and the Ministry of Tourism for upgrading tourism infrastructure across Greece.

“We welcome the minister’s focus on improving port infrastructure and promoting new destinations, which aligns with CLIA’s Action Plan for Greece, adopted last year,” the association said in a statement.

CLIA: Levy may impact cruise tourism

Crruise ship at Mykonos Port. Photo source: Municipality of Mykonos

Cruise ship at Mykonos Port. Photo source: Municipality of Mykonos

However, CLIA also encouraged the Greek government to assess the potential economic impact of the levy on cruise tourism and called for “meaningful consultation” with all affected stakeholders, including cruise operators and local communities.

CLIA noted that new berth management systems will be introduced in Santorini and Mykonos by 2025.

“We urge the government to delay the new fee until 2026 to allow these systems to be implemented and their impact assessed,” the association added.

Once in place, according to the Greek government’s announcements, the cruise passenger levy will vary by destination. A charge of 20 euros will be applied per passenger on cruises to Santorini and Mykonos during peak season. Passengers to other Greek ports will see a 5-euro fee during the peak tourism season, from June 1 to September 30.

In response, the Municipal Port Authority of Mykonos expressed concerns in an open letter to Greek Prime Minister Kyriakos Mitsotakis, highlighting the potential negative effects of the levy on both the cruise industry and the local economy.

“The proposed increase risks making Mykonos less competitive as a cruise destination, potentially affecting the local economy,” the authority said.

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2 comments

Andreas Romanos 18 September 2024 - 19:36

As a hotelier in Chania – increasingly a target for Cruise ships – I can only exhort the government to press ahead with the new tax and also to extend it to Chania before it experiences more of the same issues as Mykonos and Santorini. Mykonos visitor numbers are beginning to decline and one increasingly hears of empty hotel rooms in Santorini while the narrow streets of Fira and Oia are choked with cruise passengers. Wealthy visitors leave disappointed (we hear many of their complaints at our hotel), will never return there, and will pass on their experiences back home. In Chania, streets surrounding the Old Town have become parking areas for the coaches that carry passengers to and from their ships and long snakes of visitors following little signs held high ruin the gentle and picturesque atmosphere of our city. It is harmful and not balanced out by any benefits as cruise visitors spend little on shore. This is well known and one wonders why any local officials would urge a brake on the new tax and support the continued arrival of cruise ships. Yes to the new tax with the only reservation that it is not high enough.

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Naomi Day 18 September 2024 - 12:26

As a full time Mykonos resident it would be interesting to see just how much revenue cruise ship tourism brings to the island. and how much it costs the island in return. It is rare to see cruise ship passengers laden with shopping bags, and they mostly eat onboard because eating out in Mykonos is expensive. The coaches with the excursion passengers block the small roads and add to the traffic problems. Chora is already busy with foot traffic in high season without the guests from up to 8 cruise ships per day. Next lets move on to the environmental impact, the exhaust fumes from the cruise ships can be seen hanging over the island on a daily basis, the ships might move on ,but the fumes are trapped depending on the weather. As I presume air quality is measured/recorded, it would be interesting to compare this summer to the covid season when cruise ship traffic was all but zero. Cruise companies know that these 2 destinations help to sell their product, and therefore it is unlikely that they will take Mykonos/Santorini off of their cruise itinerary for the sake of a 20 euro charge on a cruise that costs hundreds/thousand of euros per person. What is vital is that if this tax goes ahead (and why shouldn’t it when land based guests need to pay the climate resilience charge?), that it really is invested for the good of the destinations that it is charged for. Both the old port and the new port in Mykonos desperately need proper maintenance. Green initiatives to combat the pollution that these vessels bring is lacking. Investment in just these 2 issues would benefit both tourists and locals alike.

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