Greek Reporter claims that travelers will now have to pay extra taxes at their lodgings, increasing the cost of taxes even further. According to EU Helpers, the new tax payment mechanism is designed to be seasonal and will only be in effect from March to October, which is the busiest time of year.
The official rating of the lodging determines the tax rates, which range from €1 to €4 per night. Said another way, visitors staying in one- or two-star hotels and apartments would pay a fee of €1.50, while those staying in three-star hotels will pay €3. Stays in four-star hotels will cost an extra 7€, and premium five-star hotels will have a charge of €10.
The prices that operators and travel agencies provide will not include these taxes, which visitors will need to pay locally in local currency.
The Panhellenic Hoteliers Association President, Grigoris Tasios, has expressed worries regarding the tax increase's possible detrimental effects on travel. He worries that it would make travelers less inclined to travel to Greece, which would lower tourism numbers and earnings.
However, the climate resilience levy will recommence at the level of the previous bed tax during the off-season, which runs from November to February.
The new charge is expected to bring in an extra €300 million in revenue for the Greek government by 2024, more than doubling the amount allocated to special reserves. This climate tax, in contrast to the previous one, will also be applied to short-term rentals that are reserved online.
Notwithstanding the economic difficulties resulting from the recent fire and flood disasters, Mitsotakis praised the nation's dedication to fulfilling its budgetary obligations.
Greece saw the greatest flooding in its history in September of last year, which left seventeen people dead, substantial infrastructure damage, and high financial losses. According to government estimates, the cost of rehabilitating railroads alone would exceed €150 million.
Greece's tourism industry has prospered in spite of these obstacles, with a rise in foreign air travel arrivals. Over 23 million arrivals were registered between January and October of last year, exceeding the numbers for the corresponding period in 2022. In the first ten months of the previous year, the Greek Tourism Confederation claimed 2.4 million more arrivals, a 12% rise above pre-pandemic levels.