Greek Hotel Industry revolts over VAT, property and occupancy tax hikes

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Greek Hotel Industry revolts over VAT, property and occupancy tax hikesDay tax in all categories of hotels and domation- detail the amounts Additional ENFIA hotels 0.1%! For "execution" of the industry refers to POX

Greek hoteliers have been enraged by a new indirect Single Property Tax (ENFIA) that is part of the structural reforms required as part of Greece's bailout review deal with its creditors.

After the “occupancy tax” which will take effect in 2018 and the rise in value-added tax (VAT) from 23 percent to 24 percent, they lose their initial ENFIA tax exemption and will be charged with an additional tax of a 0.1 percent rate on their properties

Greek Tourism Confederation (SETE) stressed in an announcement that these levies are added to a range of other taxes on products and services that directly and indirectly affect the tourist, raising the cost of the travel package, diminishing the competitiveness of tourism the next two years and warned that the next years are projected to be “extremely difficult” for Greece’s tourism enterprises.

The Hellenic Chamber of Hotels also predicted that numerous Greek businesses will inevitably shut their doors and a significant loss of jobs will be recorded, taking an eventual toll on tourism, that it will have devastating consequences on the viability of hotel businesses as well as on the economy and jobs and, in a letter to the Minister of Finance Euclid Tsakalotos, characterized the extra tax as “unfair and wrong” and asked for the minister’s personal intervention for the additional ENFIA tax not to be implemented.

Furthermore, the Hellenic Federation of Hoteliers described the measures as “unreasonable” and claimed that they aim to eradicate thousands of hotel enterprises across the country.

In the meanwhile, the daily occupancy tax is to be imposed on all categories of hotels and rooms as follows:

For Hotels

  • 1-2 stars 0,50 €
  • 3 stars 1,50 €
  • 4 stars 3,00 €
  • 5 stars 4,00 €

For Rentals (Rooms and Apartments)

  • 1-2 keys 0,25 €
  • 3 keys 0,50 €
  • 4 keys 1,00 €

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report

 

 

 

 

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