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Uncertainty and extra taxes undermine Greek tourism

06 May 2015 / 17:05:26  GRReporter
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At the international symposium entitled "The contribution of tourism to sustainable development", representatives of tourism and regions expressed their disagreement with the proposals for additional taxes in tourism. The symposium was held between 1 and 3 May at Caravia Beach Hotel on the island of Kos. The participants also discussed the cost of the continuing uncertainty, the ambiguity in bookings, and the bolstering of the sector through infrastructure projects and investments.

The decision to collect a fee in favour of the police was confirmed as withdrawn. According to this decision, the visa price under the pilot programme for third country visitors, covering 13 islands in the eastern Aegean, would double and reach €70.

After the outcry from local tourist organisations and businesses, which argued that this might stifle the growing flow of tourists from Turkey, the topic was commented on by the president of TURSAB, the organisation of Turkish travel agencies, Başaran Ulusoy. He demanded a ‘solution to the problem of visas between neighbours’, as tourists from Turkey into Greece are expected to surpass 1 million in 2015.

In her welcome address, the Deputy Minister of Tourism, Elena Koundoura, stressed the need to set the tourist product apart from political oppositions. According to her, "we are still at the level of proposals and no measures have been decided."

She added that the government's goal is "not to create problems for tourism" and that this year's tourist season will be within the vicinity of last year’s. Elena Koundoura voiced her hope for better performance of the sector "if there is stability, which will be provided by an agreement between the government and the institutions."

The president of the organisation of Greek tourist companies, Andreas Andreadis, talked about the consequences on reservations. The organisation’s initial assessment will be ready in May, but Andreadis believes the year is not lost yet.

In connection with the additional taxes in tourism, he noted that they "should not be introduced in mid-season," and qualified their collectability as ‘doubtful’. Instead, Andreadis suggested tighter controls of dirty money from illegal accommodations. The latter's revenues are estimated at €2 billion. According to Andreadis, payment with credit or debit cards is a positive development.

Prefecture governors – Christiana Kalogirou of the North Aegean and Georgios Hadzimarkos of the South Aegean – also expressed their disagreement with the proposed measures. They talked about weaknesses and prospects in tourism. "There has been a delay in bookings as of late," said Hadzimarkos.

According to him, the current uncertainty puts a heavy tax on tourism. He also talked about the shortage of marinas, airports, port infrastructure, and cultural centres in the South Aegean.

"Tourism suffers from piecemeal reform," stressed Christiana Kalogirou. She believes that various experiences and products can become ambassadors of Greek tourism, such as the ouzo of Chios, the wine of Samos Island, the Limnos wheat, etc. "There are conditions for investment in new forms of tourism in the Aegean," she said.

"If the negotiations continue at high pitch, then the numbers will decline even further," stressed the adviser for tourism from Crete, Michalis Vamiedakis. He described the island's infrastructure as the ‘Achilles heel’, especially Heraklion airport and the northern highway, and stressed that tourists have to be induced to spend more.

Vamiedakis also talked about the seasonal nature of tourism and the problems suffered by local businesses consequent to the all-inclusive system.

Airports at the epicentre

The Aegean Airlines Vice President, Eftichios Vassilakis, talked about the modernisation of airports. He suggested a grouping of airports according to the type of ownership - public, private and joint ventures. He prioritised their independent management and sustainability. Speaking about the privatization of regional airports, Vassilakis said that investments must be made quickly, the price needs to be competitive and funds should continue to be transferred to smaller airports.

As far as Athens airport is concerned, he asked for an extension of the contract aimed at reducing costs as Athens is 50% more expensive than other capital's airports in Southern Europe on average.

The Vice-President of the Hellenic Federation of Hoteliers, Antonis Kambourakis, also gave priority to privatisation and modernization of provincial airports. Regarding the extension of the tourist season, he thinks it will not be enough if travel agencies multiply their destinations: retailers, restaurants, hotels and society at large will have to take part in the process, too.

Other presenters at the symposium included Nadya Marinova, the Bulgarian deputy minister of tourism, Ahmet Temudzhi from the Turkish Ministry of Culture and Tourism, Mohammed Yousef, advisor for the Egyptian Ministry of Tourism, among others. The all-inclusive model and medical tourism were among the topics most often discussed at the symposium.

 

Tags: tourism issues infrastructure airports
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