BUSINESS

Hoteliers to discuss overtaxation with PM

STATHIS KOUSOUNIS

TAGS: Tourism, Taxation

The overtaxation of tourism and the absence of clear zoning in the sector are deterring investors from entering the field in Greece, in spite of the interest recorded in new business plans by domestic and foreign groups, according to the president of the Greek Tourism Confederation (SETE), Yiannis Retsos.

The SETE chief qualifies the possibility of a new tax on overnight stays at accommodation units as of January 1, 2018 as a threat to Greek tourism. Overtaxation will be among the hot topics discussed during SETE’s visit to the prime minister’s office, probably on Thursday, and Retsos says that if the new tax is imposed it will lead to an average rate hike of 5-6 percent. In the case of smaller units the hike may amount to as much as 10 percent.

If applied, the new tax will amount to 4 euros per night for five-star hotels, 3 euros/night at four-star units, 1.50 euros/night for the three-star establishments and 0.50 euros/night for one- and two-star accommodation, as well as rooms to let.

Hoteliers estimate that a large part of the industry will choose to absorb the tax itself in order to survive in the increasingly competitive international environment.
 

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