Greece Introduces New Climate Resilience Levy for Tourists
After suffering devastating forest fires and floods, Greece has implemented a new climate resilience levy in the form of an accommodation tax. The tax, which takes effect this month, is aimed at generating funds to support reconstruction efforts and enhance climate resilience in the country.
The new tax system will require tourists to pay additional taxes at their accommodations, making the overall cost of visiting Greece more expensive. The tax will be seasonal and will only apply during the high season, from March to October.
The tax rates will vary based on the official rating of the accommodation, ranging from €1 to €10 per night. While concerns have been raised about the potential negative impact of the tax increase on tourism, the Greek government expects to generate an additional revenue of up to €300 million in 2024.
In addition, the tax will also apply to short-term rentals booked via online platforms, marking a shift from the previous accommodation tax. The revenue generated from the levy will double the special reserves budget, with the aim of meeting fiscal targets despite the economic challenges following the recent natural disasters.
Despite the challenges, Greece’s tourism sector has seen a boom in international air arrivals, with over 23 million arrivals recorded from January to October last year. This marked a significant increase compared to pre-pandemic levels, showing that Greece remains a popular destination for travelers.
In conclusion, the implementation of the new climate resilience levy in Greece aims to support the country’s recovery efforts while also addressing the challenges posed by climate change. As the tourism industry continues to thrive, the government is optimistic about the positive impact that the levy will have on the country’s resilience and long-term sustainability as a tourist destination.
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