SETE Opposes Greek Government’s New Measures for Tourism

The Greek Tourism Confederation (SETE) has voiced strong opposition to the government’s recent announcements concerning the tourism sector, aimed at fostering a sustainable tourism model.

SETE argues that the measures presented earlier this week during a press conference are fundamentally flawed. The confederation describes the measures as “clearly collective” and points out that similar interventions in the past have proven ineffective, undermining both the competitiveness and sustainability of Greece’s tourism product.

In an open letter addressed to the ministers responsible for implementing the new tourism measures, SETE President Yiannis Paraschis has outlined several concerns.

The confederation argues that the planned increase in the climate resilience fee — potentially rising by up to 400 percent within a year — raises significant concerns about its feasibility and effectiveness. SETE questions whether the fee, which will be implemented without a review of the funds collected, will achieve meaningful results.

“Such measures do not align with the national strategy to extend the tourism season or address geographical and price differences,” says SETE, adding that despite the extension of the lower fee rate to March being “a step in the right direction”, it is insufficient to mitigate the excessive increases planned for the rest of the year.

SETE also critiques the new levy imposed on the cruise sector, emphasizing that any increase in port fees should align with the investment needs of ports and benefit local communities. The confederation argues that “simply increasing fees” without necessary operational improvements at congested ports and islands will not ensure the sustainability of these destinations.

Moreover, SETE points out that the announced tax increases could undermine the competitiveness of the Greek tourism product, particularly as rising consumer prices already strain service consumers. The confederation cautions against “relying solely on the tourism sector” to cover public finance needs arising from the climate crisis.

SETE also highlights concerns about a potential increase in the municipal levy (known in Greek as “τέλος διαμονής παρεπιδημούντων”), which is paid by hotels to local municipalities, from 0.50 to 0.75 percent, proposed by the Interior Ministry. The confederation argues that further financial burdens on tourism businesses and visitors could negatively impact Greece’s tourism image and competitiveness. SETE emphasizes the importance of effective management of funds collected from such chargesto benefit local communities.

Additionally, SETE notes that the Developmental Law 4887/2022, which was enacted on February 4, 2022, has yet to result in any tourism companies being included. The confederation also called for the release of new National Strategic Reference Framework (ESPA) programs and tenders under the Developmental Law, which have yet to be published since the beginning of 2024.

In the open letter, SETE President Yiannis Paraschis calls for a renewed dialogue with the authorities to develop policies that will ensure the long-term, sustainable development of the tourism sector and positively impact local communities.

SETE’s observations were directed to Greece’s Minister of National Economy and Finance Kostis Hatzidakis, Deputy Minister of National Economy and Finance Nikos Papathanasis, Minister for Development Takis Theodorikakos, Tourism Minister Olga Kefalogianni.