Greece plans tax hike on foreign visitors

EUROPE – Event organisers and delegates could be forced to foot part of the bill for Greece’s debt crisis. Greece’s anti-austerity government plans to charge foreign visitors18% tax on hotels and restaurants to stave off bankruptcy. According to a report in the UK newspaper The Times, tax could rise to 18% from 13% on restaurant bills, while tax on hotels could almost triple from the current 6.5% rate. But Efi Koudeli, general manager at the Thessaloniki Convention Bureau, told CMW: “First of all, efforts are made so that the VAT cost to be smaller than those reported by The Times. Indeed, any imposition of increased VAT in the Greek tourist package might create some problems in the market. However we do not believe that in the long run, this additional tax will not be mitigated in the tourism market.” A spokesperson for the Confederation of Greece Tourism told reporters: “We completely understand the need for our government to close a deal with the country’s lenders and we are more than ready to support the Greek economy in all ways possible. “However, to the extent that it is necessary to restructure and simplify VAT rates in Greece, the VAT rate for hotel and restaurant services should, ideally, be set at a uniform rate of approximately 8%, or even lower in order to stay competitive and to compensate for the extremely high borrowing costs.” Do you have a story for CMW? Email: John Keenan