Greece’s parliament has approved a new bill imposing higher taxes on short-term rentals, hotel stays and cruise ship tours. The move aims to address economic stress caused by natural disasters caused by climate change, including floods, droughts and forest fires.
While tourism remains the backbone of Greece’s economy, these measures are set to affect international travelers, including those from India, as a growing segment of Greece’s visitors.
What are the new taxes?
Starting in 2025, Greece will introduce daily accommodation taxes and new fees for cruise passengers.
During the peak season from April to October, the daily tax for short-term rentals will rise from €1.5 (Rs 134) to €8 (Rs 717), a five-fold increase. During the off-peak winter months, the tax will increase from €0.5 (Rs. 45) to €2 (Rs. 179), quadrupling the rate. Hotel taxes during the summer season will range from €2 to €15 (Rs. 179–1,344) per day depending on the star rating.
Cruise ship visitors will also face higher fees, including a €20 (Rs 1,790) tax on arrival at popular destinations. Santorini and Mykonos.and €5 (Rs 447) for other locations. These adjustments represent the sharpest increases in recent years for Greece’s tourism sector.
The recent wildfires are part of a troubling trend of increasing fire frequency and intensity in Greece. (AP Photo)
Why are these taxes introduced?
The rising fees are a response to the rising costs of managing extreme weather events driven by climate change. Natural disasters such as recent deadly Hurricane Daniel Greece’s public infrastructure and strained finances have had a major impact. The government expects to collect €400 million annually from these taxes, almost double the revenue generated in previous years. Reuters Reported.
Indian tourists, who combine luxury stays with local experiences, are likely to feel the pinch:
- High housing costs: Budget travelers may need to reevaluate their accommodation options as the tax hike disproportionately affects short-term rentals and hotels.
- Cruise Experience Cost: For Indians opting for Mediterranean cruises, the added charges may make Santorini and Mykonos less attractive than other destinations.
- Seasonal planning: Travelers can opt for winter tours of Greece, when accommodation taxes are relatively low, although the weather may not be ideal for island-hopping.
- Adjust tour packages: Tour operators may adjust prices to accommodate new taxes, increasing overall travel costs.
Practical tips for Indian travelers
To minimize the impact of Greece’s revised tourism tax, travelers can consider a few strategies. Planning off-season trips during the winter can help save on accommodation taxes, while exploring less taxed destinations outside of Santorini and Mykonos can reduce cruise fees. Budgeting ahead is essential to account for rising daily costs before the tax changes take effect in 2025, and booking accommodation early can help secure more affordable options.
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