BUSINESS

Greek hotel rates climbing due to VAT hikes

STATHIS KOUSOUNIS

TAGS: Tourism

Greek hotels’ online rates are showing an increase this month, just as the tourism season begins, according to data collected by the Trivago travel booking website.

The average online hotel rate for a twin room in Greece has posted a 7.1 percent annual increase from April 2015 to reach 90 euros per night, from 84 euros a year earlier. In contrast, Spain has recorded a yearly increase of 12.1 percent and Turkey – whose tourism sector has been hit by terrorist attacks in the country – has shown a 24.8 percent annual decline.

Part of the increase in Greek hotel rates can be attributed to the value-added tax hikes on accommodation and food service.

A similar trend can be observed in the rates of the three countries’ main city destinations: In Athens the average online hotel rate stands at 95 euros this month, up 5.5 percent from last April’s 90 euros, while in Madrid the average rate has risen 16.2 percent, while in Istanbul it has suffered a 30.2 percent slide.

Meanwhile in Athens, three New Democracy deputies, including former tourism minister Olga Kefaloyianni, filed a parliamentary question saying that the migration crisis in Greece is inflicting serious damage on the country’s tourism and hurting its image in the European markets, with an impact also expected on cruise tourism too.

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