Laws, Regulations & Policies

Four Greek ministries (tourism, economy, foreign affairs, public order), along with private-sector tourism organization representatives, met last month to discuss the tourism visa problems encountered by potential visitors to Greece, and how best to solve these problems.

The World Tourism Organization’s quality support and trade committee met last month for the first time under the new chairmanship of Portugal and addressed the issues of travel advisories, trade liberalization and health in international travel.

Legislation before parliament foresees the creation of a tourism marketing firm, most likely under private management. According to the legislation, 51% of the firm’s capital will be held by the Hellenic Tourism Organization and the remaining 49% will be split among regional authorities and tourism profession associations.

Legislation was tabled in parliament recently that if passed would modernize Greece’s 1920 legislation regarding spa tourism. Government says the new legislation would create a solid base for the development of spa tourism in Greece by both the public and private sector.

Greece’s Competition Commission fined Greece’s two biggest airlines, Olympic and Aegean, a total of 210,000 euros for complicity in reducing the commission paid to travel agents, from 9.25 percent to 6.94 percent, on tickets for domestic flights.

Greek hoteliers continue efforts to pressure government quarters to change depreciation rates for tax purposes from 4% to the 8% it was some two years ago. Representatives from Greek Hotel Chamber and the Association of Greek Tourism Enterprises say they are very disappointed that Economy Minister Nikos Christodoulakis and Development Minister Akis Tsohatzopoulos have not kept their promises to return the rate to 8%.

A presidential decree ready to be signed opens the way for tourism development projects on large land plots by the private sector. Projects would combine hotel resorts and holiday home complexes that would be up for sale or taken on a long-term lease basis, according to recent press releases.

Merchant Marine Minister Giorgos Anomeritis last month presented a new draft bill for coastal shipping. It includes a schedule of shipping routes that cover the whole country and one that is binding for passenger shipping firms.

Some six months ago the biggest news circulating within the local travel trade included the merger talks between Amphitrion and the Lambrakis group’s Travel Plan, and the purchase of Manos Travel System by the Vassilakis group (Hertz). Neither deal reached fruition, nor did any of the companies offer reasons as to why or even if talks continue. While insiders are very skeptical, perhaps recent tax legislation will put these deals back on the burner.

Greece’s coastal shipping companies say new legislation that aims to liberalize the sector and open Greek routes to competition counters free enterprise and allows for greater state intervention. They even went as far as to say the bill creates the risk of placing some companies on the brink of bankruptcy.