CLOSE
Loading...
12° Nicosia,
21 July, 2024
 
Home  /  News

Greece rolls out 'climate resilience levy' to fund post-disaster reconstruction

New tax targets tourists in peak months, aims to generate funds for rebuilding efforts in wake of forest fires and floods; concerns arise over potential impact on tourism revenue

Newsroom

In an effort to finance reconstruction projects following severe forest fires and floods, the Greek government has introduced a new accommodation tax, referred to as the 'climate resilience levy.' Implemented this month, the tax operates on a tiered payment system, ranging from one to four euros per night, based on the official rating of the accommodation. It is seasonal, applicable only during the tourist-heavy months between March and October.

Tourists staying in apartments and one or two-star hotels will pay 1.50 euros, while those in three-star hotels face a three-euro charge. Guests in four-star hotels will be taxed seven euros, and visitors to five-star hotels will pay 10 euros per night. Not included in holiday quotes, the taxes must be paid locally in the local currency.

Expressing concerns, Grigoris Tasios, President of the Panhellenic Hoteliers Association, worries that the tax increase may deter tourists, impacting revenue. However, during the low season from November to February, the climate resilience levy will remain at the level of the old bed tax.

The Greek government anticipates generating up to 300 million euros in additional revenue in 2024 with this new levy, doubling its special reserves budget. The tax also applies to short-term rentals booked through online platforms, expanding its scope from the previous accommodation tax.

Despite recent natural disasters, Greece's tourism sector has flourished. Figures from the Greek Tourism Confederation reveal a significant increase in international arrivals, surpassing 2022 numbers. The government aims to meet fiscal targets despite the economic impact of the disasters, emphasizing the importance of the new climate resilience levy in financing crucial reconstruction efforts.

[Source: Greek Reporter]

TAGS
Cyprus  |  Greece  |  tourism

News: Latest Articles

X