Greece plans to lower tourism tax rate fall from 11% to 6.5%
Balkan Business News Correspondent - 01.12.2010
The Greek government has announced that it is to almost halve the VAT for the Greece tourism sector, in a bid to increase traveller’s demand for holidays to Greece. The move, which will see the tax rate fall from 11% to 6.5%, has been welcomed by many insiders in the travel industry believe that it could help bolster the fledgling Greek economy. Simon Cooper, CEO of leading online travel agent On the Beach, says: “The decision to cut the sales tax for the tourism sector reveals just how much the Greek government want to boost tourist numbers in the country, and many travel and tourism groups in Greece have welcomed this announcement, as they believe that it could raise tourism revenue by at least 630 million Euros.”
The pledge, which forms part of the Greek government’s promise to cut next year’s deficit by 5 million Euros, will also bring the country in line with many other popular holiday destinations in Europe, such as France, where the tax is 5.5%, and Portugal and Cyprus, where it is 5%. So once the tax is cut, it could lead to more businesses, such as hotels and restaurants opening, which could in turn, lead to more employment for locals, and more opportunities for visitors to book various breaks across the country, such asCrete holidays or holidays to Kos.
Cooper continues: “2010 has been a very difficult year for the tourism industry in Greece, with the volcanic ash cloud, the recession and civil unrest causing tourist numbers to drop considerably. While many other countries across the globe have also suffered because of a number of high profile holiday companies collapsing, and as a result, the Greek government have chosen to make the decision to make a number of cuts. But while this is good news for the Greek tourism industry, it’s also great news for holidaymakers who’ve been thinking about travelling to Greece. So if you’re looking for a cheap break to the country, now is the time to start searching for breaks like all inclusive holidays from On the Beach, because next year may just turn out to be the year to travel to Greece.”
Source; On the Beach
(Balkans.com)