Greece Introduces New Tourism Tax Amid Expectations of Record Visitor Numbers

In a strategic move to capitalize on anticipated record-breaking tourist arrivals in 2024, Greece has introduced a new tourism tax. This initiative, announced by Prime Minister Kyriakos Mitsotakis, is aimed at bolstering the nation’s efforts to recover from the devastating forest fires and floods experienced in the previous year.

The tax, described as modest, is part of a broader strategy to leverage the tourism sector’s potential in aiding national recovery efforts. Interestingly, the announcement was made at a tourism fair, highlighting the government’s confidence in the sector’s resilience and growth prospects.

This new levy is set to partially supersede the existing bed tax, with rates varying based on the season. Significantly, it will be linked to tourist accommodations, thus broadening its applicability. The fee, charged in euros, will be calibrated according to the standard and rating of the hotel or accommodation facility.

The Greek government anticipates this regulatory move to generate an impressive additional revenue of up to 300 million euros in 2024. Additionally, the tax extends to short-term rental properties, capturing a wider spectrum of the tourism accommodation market.

Despite these optimistic projections, there are concerns that this new tax might deter potential visitors from choosing Greece as their destination in 2024. To mitigate this, the government has maintained the old bed tax at its current rate during the low season, from November through February, in an effort to remain attractive to tourists during this period.

The ultimate impact of this new tax policy on Greece’s tourism industry remains to be seen. The key indicator will be the actual number of tourists the country manages to attract in the coming year, which will serve as a testament to the effectiveness of this fiscal strategy in balancing revenue generation with tourist appeal.