Greek hoteliers concerned over possible VAT rate increase

hotelsantoriniThe Hellenic Chamber of Hotels has asked Greek Prime Minister Antonis Samaras to intervene in the issue of increases in VAT rates on hotel services.

In a letter addressed to Samaras, the Chamber noted: “At a time during which tourism performed very well…instead of taking strategic measures and measures for the institutional strengthening of tourism with the aim of ensuring its sustainable development of relatively…short sighted and wrong measures are being activated, which are based on an anti-development, purely revenue collection rationale and which condemn the Greek tourism to return to the old gloomy days.”

“Despite persistent rumours for a significant increase in the tourism VAT rate, we still believe that you personally…fully realize the false and dangerous path that such a possibility puts the Greek economy on and that you will move decisively to prevent it, even at the last moment, ” the president of the Hellenic Chamber of Hotels George Tsakiris said in his letter.

The Chamber noted that the alleged increase in VAT rates of hotel services will be a blow to the viability of the industry, since all tourist contracts have already been concluded, while its impact on the competitiveness of the tourism product will be devastating and long lasting.

According to the Chamber, the adjustment of VAT rates of hotel services at the levels of competitor countries resulted in a surge of the number of visitors to Greece and a subsequent rise in tourism revenues.

These increases had, according to Bank of Greece data, a positive impact on the national economic activity, resulting in positive growth rates in the third quarter of 2014, for the first time since 2008.

Given this situation, the Chamber said that its Board on Tuesday December 2 will hold an meeting.


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