Holidays in Greece can cost more due to the increase of VAT for hotels and restaurants

In exchange for the financial assistance of the European Union, Greece will have to implement a series of tough reforms. According to the publication of NBC News, the increase of taxes will also affect the tourism industry: VAT for cafes and restaurants will increase from 13% to 23%, for hotels - from 6.5% to 13%.

According to the Association of Tour Operators of Russia (ATOR), increasing of VAT from October 1, 2015 will make tour packages to Greece more expensive and less competitive in comparison with the neighboring resorts of Spain or Cyprus. At the same time, according to the association, primarily tax increase will affect the islands with higher incomes, such as Mykonos, Santorini, Rhodes and Kos. In other islands in the Aegean Sea tougher tax regime will happen by the end of 2016.

According to ATOR with reference to representatives of the Greek tourism industry, in this case accommodation on the Greek islands will be more expensive than in the resorts of mainland Greece.