Skiathos Hoteliers Raise Concerns Over Greek Government’s Overtourism Measures

Photo source: Skiathos Hoteliers Association

The Skiathos Hoteliers Association has raised concerns following recent announcements by the Greek government regarding measures aimed at addressing overtourism and improving infrastructure at tourism destinations.

In a statement, the association expressed that the viability of their sector is now under threat, arguing that the government’s lack of a comprehensive tourism policy is undermining Greece’s reputation as a leading tourist destination.

The recent announcements include increases in the “stayover duty” (known in Greek as the “τέλος διαμονής παρεπιδημούντων”) and the Climate Resilience Fee, measures that have sparked widespread concern within the industry.

According to the Skiathos hoteliers, who recently participated in a meeting with the presidents of 55 local hotel associations under the leadership of the Hellenic Hoteliers Federation, they fully support the federation’s stance and its demands. The hoteliers are calling on the Greek government to clarify its objectives and collaborate with industry professionals to find mutually beneficial solutions.

“Every additional financial burden on our services increases costs for both Greek and international customers, reduces the contribution of tourism to the local economy, and directly impacts our competitiveness,” stated Hellenic Hoteliers Federation President Yiannis Hatzis following the meeting.

Echoing Hatzis’ concerns, the Skiathos Hoteliers Association emphasized that any increase in taxation, such as the proposed hikes, would harm their product’s competitiveness. This comes at a time when alternative destinations in the region are vying for a larger share of tourists.

Referring to the government’s decision to allow local authorities to increase the “stayover duty” by up to 50 percent, the association pointed out that from 2019 to 2023, short-term rental beds grew by 100 percent, while hotel beds increased by just 3.5 percent. Despite this, the proposed tax hikes apply uniformly across the board, which they argue is unfair.

It is important to note that the revenue from this local tax is allocated directly to local authorities, intended to enhance resources and improve infrastructure in tourism-heavy areas. However, Skiathos hoteliers argue that while the private tourism sector has grown rapidly in recent years, public infrastructure development has not kept pace.

The association also highlighted the disparity between the income generated by short-term rentals and hotels in 2023. While short-term rentals declared an income of 700 million euros, Greek hotels declared 10.5 billion euros, even though both sectors offer a comparable number of beds. Additionally, they noted that although 100,000 short-term rentals are registered with the Greek tax authorities, the number listed on digital platforms is closer to 200,000.

Lastly, Skiathos hoteliers argue that the government’s overtourism rhetoric is “being used as an excuse” to impose higher taxes on their sector. They also referenced concerns raised by the German Travel Association (DRV) that warned Greek Tourism Minister Olga Kefalogianni that the tax increases could destabilize the relationship between the German and Greek tourism markets.