Greece’s increase in the tourism levy is under scrutiny, yet deemed necessary by authorities.
- The levy hike targets sustainability improvements, affecting hotels and cruise ship passengers.
- Eleni Skarveli of the Greek Tourism Organisation downplays impact on visitor numbers.
- EasyJet executives express concerns over increased travel costs due to new taxes.
- The tax aims to fund sustainability projects despite market frustrations.
Greece has raised its tourism levy, sparking scrutiny from travel industry experts and stakeholders. This increase is defended as a necessary step towards enhancing climate resilience, with funds generated being earmarked for sustainability projects. The new levy applies to hotels and accommodation, as well as a newly introduced cruise passenger charge, effective from April to October. Prices will see an increase ranging from 0.5 euros to 5 euros, depending on accommodation type.
Speakers at Abta’s Travel Convention, including Eleni Skarveli, UK & Ireland director of the Greek National Tourism Organisation, asserted that such a measure would not deter tourists. She stated, “I don’t think this is an issue,” emphasising the levy’s positive intent towards sustainable development.
Contrasting views were presented by EasyJet’s chief executive, Johan Lundgren, who warned that additional costs might suppress demand for family vacations. He highlighted a potential rise in airfare by £6 per person as a point of contention, suggesting it could negatively impact demand.
Skarveli, however, believes that the financial impact on tourists can be mitigated by travel companies through strategic pricing adjustments. For instance, tour operators might offer packages with added benefits, like extended stays, to offset the levy.
The Greek tourism industry has not experienced a decline in visitor numbers since implementing the levy initially and continues to promote the tax as a necessary adaptation to the climate crisis. Garry Wilson of EasyJet Holidays called for clearer evidence linking these levies to direct sustainability efforts, stressing that transparency would help travellers accept these cost increases more readily.
Greece’s tourism levy increase remains a contentious topic, balancing sustainability goals with economic challenges.
