Greek Hotel Industry Up Against Slow Bookings, Overtaxation and ‘Underground Economy’ this Year

This 12 months has change into a difficult time for the Greek resort business with many numerous challenges being thrown its method akin to lagging bookings, overtaxation and the “underground financial system” created by short-term dwelling leases, the Hellenic Federation of Hoteliers stated on Wednesday.

In keeping with statements of Greek hoteliers heard in the course of the federation’s annual common meeting in Athens, bookings are shifting on a gradual tempo in virtually all areas of the nation, besides primarily the Ionian islands, in comparison with the identical interval in 2015 and in contrast with the start of the 12 months.

Hellenic Federation of Hoteliers President Yiannis Retsos

In some locations, bookings are barely up or are shifting on the identical stage in comparison with final 12 months, however reservations in different elements of Greece are down with the best percentages recorded at locations whose picture was most affected because of the refugee disaster, akin to Kos.

Additionally, many lodges in locations such the Dodecanese islands, Crete and Halkidiki, have prolonged their summer time provides till the tip of Could in an effort to spice up gross sales in the course of the peak season and guarantee higher occupancy.

Lodges positioned in locations in mainland Greece, which normally appeal to home vacationers, are maybe dealing with the most important downside.

Furthermore, in accordance with the federation, Greek lodges are additionally confronted with the rise of the “underground financial system” of short-term dwelling leases, which have unfold all through Greece.

“We is not going to hold quiet for anybody on the problem of personal leases”, the federation’s president Yiannis Retsos stated, referring to the state of affairs as “the epitome of absurdity”.

Mr Retsos confused that new taxes are being imposed on authorized and constant hoteliers whereas the huge underground financial system — that equals to income lack of a minimum of 270 million euros for the state — has been left untouched.

“Lodge occupancy is lagging considerably even within the locations which are recording outstanding progress when it comes to arrivals, which signifies the dimensions of the underground financial system since an increasing number of guests are reserving at personal lodging”, he added.

In keeping with hoteliers, Athens and Thessaloniki are dealing with the most important downside with regard to such lodging however the issue has now unfold to regional locations, akin to Chania.

Mr Retsos stated that moreover the underground financial system and unfair competitors, brought on by the lack of the state to control this market seven months after its “unconditional liberalization”, it’s also a matter of well being and security for vacationers staying in such locations.

The federation additionally labeled the rumored new levy on resort lodging (which is claimed to be primarily based on occupancy charges, per evening keep) as “catastrophic” for the hospitality business.

On the common meeting hoteliers unanimously confused that the imposition of such a levy would have devastating results on the demand for Greece since it’ll considerably improve the price of the resort product along with different costs more likely to come up by the brand new improve within the value-added tax (VAT) and oblique taxes.

The federation referred to as on the federal government to desert the concept and each different considered imposing new taxes on the Greek tourism product.