SETE<\/a>) has also rejected the proposed increase, arguing that accommodation businesses already make substantial contributions to government revenue.<\/p>\nIn its November 6 announcement, SETE acknowledged the importance of adequately funding municipalities and maintaining tourism destinations but warned against placing an increasingly disproportionate burden on accommodation providers.<\/p>\n
\u201cThe necessary funding of local government cannot, however, rely on continuously increasing the burden on a single productive sector, specifically accommodation businesses,\u201d the organisation said.<\/p>\n
SETE argued that authorities should focus on making better use of existing public revenues before introducing additional charges.<\/p>\n
Figures cited by the two tourism organisations show that revenue from the former accommodation tax and its successor, the Climate Crisis Resilience Fee, increased from approximately \u20ac134 million in 2019 to \u20ac588 million in 2025.<\/p>\n
Based on tax authority data available through May, SETE estimates that receipts could approach \u20ac770 million in 2026.<\/p>\n
The organisation also pointed to an INSETE study that ranked Greece fifth among seven competing Mediterranean destinations for hotel tax competitiveness, highlighting the pressure created by taxation and non-wage labour costs.<\/p>\n
Another concern is that the municipal stayover duty is calculated on business turnover rather than profitability, meaning accommodation providers can face the charge regardless of their actual financial performance.<\/p>\n
Tourism industry demands greater transparency<\/h2>\n
POX has called on the government to ensure that revenue collected through the municipal stayover duty is used exclusively for infrastructure, public services and improvements directly connected to tourism destinations.<\/p>\n
The federation argues that if municipalities intend to use the revenue to finance general expenditure, the system should instead be replaced with a broader charge applying to all businesses operating within a municipality and calculated according to net profits.<\/p>\n
It has also called for stronger enforcement of the existing duty on short-term rental properties, arguing that their contributions should accurately reflect their business turnover.<\/p>\n
Both POX and SETE maintain that municipalities need adequate financial resources to support residents and visitors. However, they warn that repeatedly increasing charges on hotels and accommodation businesses risks undermining a sector that remains central to the Greek economy.<\/p>\n
SETE reiterated that existing resources should be used more effectively before further taxation is introduced.<\/p>\n
\u201cThe effective use of existing resources must come before any announcement or decision to impose additional charges,\u201d the confederation said.<\/p>\n
Greece\u2019s hotel and tourism organisations oppose plans to raise the municipal accommodation duty to 1 per cent, warning that additional taxation will increase costs for businesses and weaken the country\u2019s competitiveness.<\/strong><\/p>\nGreece\u2019s tourism industry has pushed back against a government proposal to increase the municipal accommodation duty, warning that hotels and other accommodation providers are facing an increasingly heavy tax burden.<\/p>\n
The proposed measure would allow municipalities to raise the maximum rate of the municipal stayover duty, known in Greek as the \u03c4\u03ad\u03bb\u03bf\u03c2 \u03b4\u03b9\u03b1\u03bc\u03bf\u03bd\u03ae\u03c2 \u03c0\u03b1\u03c1\u03b5\u03c0\u03b9\u03b4\u03b7\u03bc\u03bf\u03cd\u03bd\u03c4\u03c9\u03bd<\/em>, from 0.75 per cent to 1 per cent.<\/p>\nPrime Minister Kyriakos Mitsotakis announced the proposal on Friday during the Central Union of Municipalities of Greece (KEDE) conference in Kalamata, presenting it as part of a broader package aimed at strengthening municipal finances.<\/p>\n
Although the increase would be optional for local authorities, tourism organisations fear it could become widely adopted.<\/p>\n
The proposal follows legislation introduced in October 2024 that allowed municipalities to increase the duty from 0.5 per cent to 0.75 per cent. If the latest proposal proceeds, the maximum rate will have doubled within two years.<\/p>\n
Hoteliers warn of additional financial pressure<\/h2>\n
The Hellenic Hoteliers Federation (POX) has formally raised its objections in a letter to Mitsotakis dated November 6.<\/p>\n
The federation expressed concern that another financial burden was being considered without meaningful consultation with representatives of the hotel industry.<\/p>\n
\u201cThe hotel sector is concerned that yet another charge, which it will largely bear, appears to be moving forward without any meaningful dialogue with its institutional representatives,\u201d POX said.<\/p>\n
The duty was originally introduced in 1973 to help municipalities cover expenses associated with tourism, including cleaning, public lighting and infrastructure.<\/p>\n
However, legislative changes introduced in 2024 expanded the permitted use of the revenue, allowing municipalities to allocate the money towards general municipal expenditure rather than restricting it to tourism-related services.<\/p>\n
POX also questioned whether making the proposed increase optional would prevent widespread implementation.<\/p>\n
The federation cited a survey showing that 24 of the 40 municipalities examined had already increased the duty to 0.75 per cent.<\/p>\n
It has previously warned about rising municipal charges affecting hotels, including waste management and public lighting fees.<\/p>\n
SETE warns against further tourism taxation<\/h2>\n
The Greek Tourism Confederation (SETE) has also rejected the proposed increase, arguing that accommodation businesses already make substantial contributions to government revenue.<\/p>\n
In its November 6 announcement, SETE acknowledged the importance of adequately funding municipalities and maintaining tourism destinations but warned against placing an increasingly disproportionate burden on accommodation providers.<\/p>\n
\u201cThe necessary funding of local government cannot, however, rely on continuously increasing the burden on a single productive sector, specifically accommodation businesses,\u201d the organisation said.<\/p>\n
SETE argued that authorities should focus on making better use of existing public revenues before introducing additional charges.<\/p>\n
Figures cited by the two tourism organisations show that revenue from the former accommodation tax and its successor, the Climate Crisis Resilience Fee, increased from approximately \u20ac134 million in 2019 to \u20ac588 million in 2025.<\/p>\n
Based on tax authority data available through May, SETE estimates that receipts could approach \u20ac770 million in 2026.<\/p>\n
The organisation also pointed to an INSETE study that ranked Greece fifth among seven competing Mediterranean destinations for hotel tax competitiveness, highlighting the pressure created by taxation and non-wage labour costs.<\/p>\n
Another concern is that the municipal stayover duty is calculated on business turnover rather than profitability, meaning accommodation providers can face the charge regardless of their actual financial performance.<\/p>\n
Tourism industry demands greater transparency<\/h2>\n
POX has called on the government to ensure that revenue collected through the municipal stayover duty is used exclusively for infrastructure, public services and improvements directly connected to tourism destinations.<\/p>\n
The federation argues that if municipalities intend to use the revenue to finance general expenditure, the system should instead be replaced with a broader charge applying to all businesses operating within a municipality and calculated according to net profits.<\/p>\n
It has also called for stronger enforcement of the existing duty on short-term rental properties, arguing that their contributions should accurately reflect their business turnover.<\/p>\n
Both POX and SETE maintain that municipalities need adequate financial resources to support residents and visitors. However, they warn that repeatedly increasing charges on hotels and accommodation businesses risks undermining a sector that remains central to the Greek economy.<\/p>\n
SETE reiterated that existing resources should be used more effectively before further taxation is introduced.<\/p>\n
\u201cThe effective use of existing resources must come before any announcement or decision to impose additional charges,\u201d the confederation said.<\/p>\n
<\/p>\n