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.
Yury Mishchenko, graduated from Moscow Institute of Foreign Languages, has more than 15 years experience in tourism and travel. Working both in tour operator company as destination manager, and in travel agency as sales manager, he is focused on analysis of Russian tour operators’ daily routine. Recently, Yury works in Baginet Marketing and Sales Agency.