Athens-Attica Hotel Association Appeals New Development Fee in Vari-Voula-Vouliagmeni

The luxury Divani Apollon Palace is just one of the hotels located in Vouliagmeni.

The Athens-Attica & Argosaronic Hotel Association has announced its appeal against the Municipality of Vari-Voula-Vouliagmeni’s recent decision to implement a 12-year “special local sustainable development fee” on businesses within its jurisdiction.

Approved by the municipal committee in December, the new fee is designed to fund infrastructure projects aimed at promoting sustainable development and enhancing the area’s quality of life. The fee, which varies by business type, is set at 12.60 euros per square meter of built-up area for hotels and will take effect on March 1, 2025.

The hotel association stated on Thursday that it had filed an appeal with the Decentralized Administration of Attica, challenging the municipality’s decision. In parallel, several hotel companies have also initiated legal actions, with more expected to follow.

First appeal in association’s history

“This is the first time in the association’s recent history that we are filing such an appeal,” said Evgenios Vassilikos, president of the Athens-Attica & Argosaronic Hotel Association.

“This appeal is not limited to the specific decision but addresses a broader pattern of ‘asymmetrical’ decisions that continuously impose new obligations and financial burdens on the hotel sector,” Vassilikos added.

Four Seasons Astir Palace Hotel , Vouliagmeni.

He emphasized that the new fee is just the latest in a series of levies imposed on hotels. Existing charges include the Stayover Duty municipal fee and the Climate Crisis Resilience Fee, both classified as “reciprocal” taxes intended to fund infrastructure improvements and promote sustainable development.

“Unfortunately, this new fee appears to have more of a revenue-generating character than a truly reciprocal one, as indicated by a recent study conducted by the Institute for Tourism Research and Forecasts (ITEP),” Vassilikos said.

The need for fair contributions

Vassilikos acknowledged the importance of infrastructure upgrades and environmental improvements in Vari-Voula-Vouliagmeni. However, he stressed that such projects should not rely disproportionately on the hotel sector for funding.

“We recognize the need for environmental and social infrastructure projects that will enhance the area’s quality of life and competitiveness,” Vassilikos said. “However, it is not acceptable for the hotel industry to bear the brunt of financing these efforts.”

He reiterated the association’s readiness to work with local authorities on sustainable development initiatives. However, he called for a more transparent and collaborative approach, rather than imposing “arbitrary fees” through “undemocratic decisions”.

“We remain committed to dialogue, transparency, and deliberation to ensure sustainable practices, but this must be done through fair and balanced measures,” Vassilikos said.