BUSINESS

Tax makes hotel investments costlier in Greece

STATHIS KOUSOUNIS

TAGS: Tourism, Property

High taxation is preventing tourism investment in Greece, according to the latest study by the Institute of the Greek Tourism Confederation (SETE).

Comparing Greece with Cyprus, the study showed that the amortization of a hotel investment in Greece requires more than 25 years of operation against 14 years in Cyprus during a crisis period. In a growth period, a successful investment would require 14 years in Greece and just five in Cyprus.

Revenues per hotel room in Greece are 18 percent lower than in Cyprus and operating profits are 36 percent less.

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