Greece, which has set a new tourism record this year despite severe forest fires and floods, plans to include holidaymakers in its post-disaster reconstruction through increased taxes.
The events in Greece during the summer months were shocking: large forest fires raged in many areas of the country, claiming numerous lives and causing enormous damage. After the fires were under control, a severe flood disaster hit the country. Many people lost their lives and Mediterranean cyclone Daniel caused significant infrastructure damage and crop failures in Thessaly, a central agricultural region of Greece.
Despite these challenges, the tourism sector in Greece is experiencing an upswing. The country is expected to surpass the previous record of 33 million visitors set in 2019 this year. The Greek government plans to use this upswing for its own purposes.
Greek Prime Minister Kyriakos Mitsotakis has assured the victims of the flood disaster comprehensive support. According to a report by “Handelsblatt emphasized Mitsotakis: "Everything that was lost - be it for the state or the citizens - we will restore even better together.
At the tourism fair in Thessaloniki, the Prime Minister announced that a fund for natural disasters will be set up in the future. In addition, mandatory full insurance against natural disasters will be introduced for all companies. He also mentioned that the tourism sector will play an important role in financing these measures and reconstruction.
Travellers to Greece could soon face higher costs. From 2024, the new “climate resilience levy” will replace the previous bed tax. According to a report by “Focus this fee will vary depending on the travel season. The bed tax is currently between 50 cents and 4 euros per night.
From 2024, from March to October, the new tourist tax will entail an increase in accommodation costs in Greece. Hotels with one or two stars will then charge 1.50 euros per night (previously 0.50 euros). For three-star hotels, the fee will increase to 3 euros (previously 1.50 euros), four-star hotels will charge 7 euros (previously 3 euros), and for five-star hotels the fee will increase to 10 euros each night (previously 4 euros).
The Greek government expects this new regulation to generate additional revenue of up to 300 million euros in 2024. Unlike the previous accommodation tax, the new tax will also apply to short-term rentals via online platforms. An amount of 1.50 euros is set aside for apartments. For single-family homes or even more exclusive accommodations, the fee will be 10 euros, similar to luxury hotels.
Grigoris Tasios, president of the Panhellenic Hoteliers Association, points out that in a luxury hotel, this new regulation will result in an additional cost of 70 euros per week for guests per bed or accommodation. He expresses fears that this increase could have a negative impact on tourist numbers in 2024.
During the low season, i.e. from November to February, the new tax will remain at the level of the old bed tax, i.e. between 50 cents and 4 euros. This measure aims to stimulate winter tourism in Greece. Recently, the Greek tourism industry announced that it plans to significantly expand the holiday season.
Some locals in Greece might not be too unhappy about fewer tourists next year as the country faces the challenges of mass tourism. In order to better manage the crowds at one of the main attractions in Athens, the Acropolis, a reservation system has already been introduced.
Extending the tourism season in Greece would undoubtedly help spread the crowds over a longer period.