TAXATION

German warning on tourism

German warning on tourism

The reactions of foreign tourism organizations to the recent measures taken by the Greek government for the sector, and in particular to the increase in the climate crisis resilience fee and the imposition of a cruise fee, are taking an institutional form.

The German Travel Association (DRV) is asking the government in Athens for a transitional period in the implementation of the fees and special treatment for holiday packages already sold for 2025, as it is unable to pass on the cost of the extra levies to customers who have already paid for their holiday package as well as for the tour operators themselves to bear these costs.

In addition, with a letter to the minister of tourism at the end of last week, DRV warns that the German market is particularly sensitive to price competitiveness, noting that in recent years there has been a shift of customers from the Western Mediterranean to the more competitively priced Eastern Mediterranean, clearly implying Greece and that there may be a new shift.

The letter comes amid increasing information from the contacts of Greek hoteliers with their foreign partners about the difficulties they face in managing the charges that will be imposed, at least with the data so far for the 2025 season. This is taking place as some European media covering the issue of the new policies being introduced by Greece have created the impression that the government is profiteering at the expense of tourists or wants to stem the rise in visitor numbers, sources from the British and German tourism industry report.

DRV’s letter to Tourism Minister Olga Kefalogianni states that “the German travel industry can look back on a good summer season in 2024 and is more than happy that, despite all the adversities, German holidaymakers continue to appreciate its products.” However, it adds, “we observe with concern Greece imposing many new taxes and levies on holidaymakers or significantly increasing existing fees in a relatively short period of time. In addition to the cruise passenger levy, this concerns in particular the ‘climate resilience fee,’ which is to be increased significantly.”

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