Greek Hoteliers Sound Alarm Over High Municipal Fees

Hellenic Hoteliers Federation President Yannis Hatzis.

The Hellenic Hoteliers Federation (known as POX in Greek) has voiced serious concerns over the growing financial burdens imposed on the hospitality sector by municipal authorities in Greece.

In a formal letter addressed to Deputy Minister of Interior Theodoros Livanios, the federation urged the government to enforce laws and regulations to ensure municipalities act lawfully in imposing fees and levies.

The letter, also sent to Greek Tourism Minister Olga Kefalogianni, highlights that hotel businesses are increasingly struggling with surcharges such as waste management fees and municipal levies, many of which exceed lawful limits.

Mounting financial pressures on hotels

According to POX President Yannis Hatzis, these additional charges jeopardize the competitiveness of the Greek tourism product, particularly in a period of economic uncertainty and rising costs for energy and raw materials.

“Municipal surcharges, on top of the increased climate crisis resilience fee, are eroding our competitiveness and creating unsustainable conditions for hotel businesses,” the federation noted.

Despite an increase in revenue, the federation pointed out that hotel profits in 2023 declined by 16.3 percent compared to the previous year, underscoring the impact of over-taxation on the sector.

Examples of over-taxation

The federation provided concrete examples of municipalities imposing excessive or new levies:

– Increases of up to 300 percent for waste management and public lighting charges in some cases.
– An increasing number of municipalities are utilizing the provision of Article 30 of Law 5143/2024 to raise the stayover duty (commonly known in Greek as the τέλος διαμονής παρεπιδημούντων) to 0.75 percent. These decisions are often made without justification or a clear outline of the additional expenses the increased fees are intended to cover.
– The Municipality of Vari-Voula-Vouliagmeni, in the Region of Attica, introduced a “special local sustainable development fee”, requiring all hotels — regardless of their category or rating — to pay 12.6 euros per square meter of their facilities.

Such practices, the federation highlighted, add significant financial strain and threaten the sustainability of hotel operations.

Federation’s demands and recommendations

In its letter, POX made several requests:

– Municipal authorities must comply with existing laws and refrain from imposing unlawful or excessive surcharges.
– The over-taxation of hotels undermines the competitiveness of Greece as a tourism destination, making it less attractive to both domestic and international travelers.
– Open dialogue between local authorities and the hospitality sector is essential to find a balance between municipal financial needs and the sustainability of hotels.

The federation also stressed the critical role tourism plays in the Greek economy, contributing significantly to the country’s GDP.

“Continuous financial burdens on hotels jeopardize their viability, with severe repercussions for employment and the economy as a whole,” the letter stated.