Skip to main content

Greek debt deal will raise taxes on tourists

Demonstration last week in Syntagma square, calling for No vote in referendum on austerity pact. After agreement, new demonstrations call for rejecting the agreement.


The recent deal between Greece and European finance authorities is not completely settled, but as negotiated, it will make vacationing in Greece a bit more expensive, potentially hurting an industry that has already seen sharp recent losses because of traveler fears of not being able to find cash or food.


Among the most immediately noticeable effects will be increases agreed to in VAT, the value added tax added to all retail transactions. The tax on meals is to rise from 13% to 23%, and the tax rate on hotel rooms will rise from 6.5% to 13%. Both of these affect tourists more than locals, especially the hotel rate.


However, while that is so, it has the potential to affect many Greeks, because raising the cost of vacationing in Greece will hurt the recovery of the tourism industry, which has already seen a sharp drop in reservations, marked by rises in Spain, Portugal and elsewhere (see NewsLink further down this column).


For a longer discussion of the effects, see this Associated Press story.




The best part of every trip is realizing that it has upset your expectations

Add Comment

Comments (1)

Newest · Oldest · Popular

It will definitely hurt tourism, especially for those who want to stay awhile and relax in Greece.  The increase in food and accommodations will take a bite out of most budgets.  It won't hurt the cruiseship travelers, though.

Twitter: @DrFumblefinger

"We do not take a trip, a trip takes us".  John Steinbeck, from Travels with Charlie

Link copied to your clipboard.