Taxes eating into tourism takings
A new survey on developments in the country’s hotel sector showed on Friday that the recorded rise in tourism revenues is absorbed by the increased taxation, leaving no scope for more competitive room rates.
The study conducted for the Hellenic Chamber of Hotels and the Institute of Tourism Research & Forecasts (ITEP) also found that the number of five-star hotels is increasing while those further down the scale are gradually becoming fewer, and that the seasonal character of tourism in Greece is hindering a stronger improvement in the sector’s results and the wider expansion of its benefits to society.
The survey presented at the hotel chamber’s seventh general assembly further indicated that tourism inflows are mainly centered on two regions, the southern Aegean and Crete, which earn almost half of the industry’s revenues, while a considerable part of the country remains off the tourist radar.
The increase in average annual gross revenue per hotel room came to 11.3 percent in 2017 from the year before, reaching 19,263 euros, after an annual rise of 7.6 percent in 2016. However, net revenues saw much lower growth due to the increase in taxes and social security contributions.