New Taxes for Tourists in Greece from January 1

From January 1, 2018, Greece introduces a new tax for tourists – between 0.25 and 4 Euros per night in a hotel, depending on its class.

Through the new collection, the government hopes to increase the revenue part of the budget, in which tourism takes a significant share. However, hoteliers and tour operators believe that the new tax will hit their industry, turnover, lead to a reduction in demand and to the loss of thousands of jobs.

In Greece, tourism provides about 20% of GDP (in Russia about 5%). 1.3 million are employed in the tourist industry. According to forecasts, about 30 million tourists will visit Greece in 2018. Each of them will spend in the country 600 Euros.
The tax will be withheld from all travelers – organized and independent, who will live in licensed accommodation facilities: hotels, guest houses, apartments and furnished rooms.

Those who stay at a 5-star hotel will be most heavily taxed: they have to pay 4 Euros per night. For an overnight stay in a 4-star hotel, an additional fee will cost 3 Euros per night, and visitors of 3-star facilities will pay 1.5 Euros per night.

Tourists who stop in a four-room apartment or such a large flat have to pay for their overnight stay an additional 1 Euro per night. An overnight in 1-star and 2-star hotels will cost additional 0.50 Euros. The same amount will pay tourists for accommodation in three-room apartments. 0.25 Euros will be withheld for an overnight stay in apartments with one or two furnished rooms or in a small flat.

To pay tourist tax is necessary in the hotel, and the hotel has the right to refuse accommodation, if the tourist has not paid the tax.

The impact of the new tax on tourism sector will not yet be felt in 2018, since many contracts for the next season have already been agreed. In a few years, when Greece ceases to benefit from the geopolitical situation that arose because of the influx of tourists from Turkey and Egypt, there may be problems in Greek tourism. Greece is now considered to be an expensive place compared to its competitors.

“The tax is wrong essentially: four Euros per day for an overnight stay in a 5-star hotel; and let’s get on with this 5-star hotel. It means the hotel that costs almost 1000 Euros a day, and there are hotels in Athens with the average price of a room at 80 and 100 Euros. It is strange that a tourist who pays thousand Euros a day will pay the same tax as a one who has paid 100 Euros for his overnight stay, explains Managing Director of TEZ TOUR Greece Dimitris Haritidis to a reporter of “RIA Novosti”.