Athens secures bailout; tourist hotspots faces taxes

Athens secures bailout; tourist hotspots faces taxes

Greece has secured a bailout deal, but tax hikes are feared to hamper tourism; meanwhile banks remain shut.

Greek tourism operators are concerned proposed new taxes imposed on meals and hotel room sales could impede travellers to the country, or face discounting to offset the higher rates.

As Eurozone leaders struck a deal on a bailout to prevent debt-stricken Greece from crashing out of the euro, it has forced Athens to push through draconian reforms in a matter of days.

After gruelling 17-hour talks, leftist Greek Prime Minister Alexis Tsipras accepted terms set by his distrustful partners.

The deal requires Greek parliament to approve a raft of market-oriented laws by Wednesday as a sign of good faith and face scrutiny by the International Monetary Fund (IMF) for compliance.

Only then will the 18 other eurozone leaders start negotiations over what Greece is to get in return: a three-year bailout worth up to 86 billion euros ($A128.68 billion) its third rescue program in five years.

The sweeping changes are to labour laws, pensions, VAT and taxes, according to the deal document.

Some 25 billion euros of the money in that fund will then be used to recapitalise Greece’s cash-starved banks amid fears they were about to finally run dry and trigger its exit from the single currency.

However, a proposed Greek meal sales tax being considered by European leaders would boost it from the current 13% to 23%, while hotels would see room sales taxes rise from 6.5% to 13% has triggered concern for tourism operators.

According to operators, many would be forced to offset the higher taxes with lower prices to keep their cash-strapped customers, AAP reports.

While the tax hikes will affect all of Greece’s tourism industry, they are expected to hit destinations which cater almost exclusively to Greeks harder than foreign tourist destinations like Athens and islands such as Corfu, Mykonos, Rhodes or Santorini with operators expecting international travellers to bear the burden of the increases.

Meanwhile, Greek banks could remain shut for the next two days as authorities struggle to contain the economic damage from a two-week closure brought about by a cash shortage. Greeks were limited to withdrawing a maximum of 60 euros per account, per day, creating lengthy queues at ATMs.

A new expiration date for the bank holiday would be announced later on Monday, a source from the finance ministry told AFP.

“If there is a deal, banks will reopen very soon, within the week as soon as the ECB (European Central Bank) provides ELA,” Giorgos Stathakis told the BBC.

But, he added, “capital controls will take a few months to be totally removed.”

International travellers do not face any limitations on amounts they are able to withdraw from ATMs, and most operators reportedly accept credit cards.

Image credit: BusinessInsider

Latest News

  • Events
  • Travel Agents

From Olympians to mindset coaches, Helloworld’s OMC conference wraps in style

The 2024 Helloworld Travel Owner Managers Conference (OMC) has wrapped up in style in Sydney with over 550 attendees in attendance. The event brought together Helloworld owner-managers from across Australia and New Zealand along with valued supplier partners, special guest speakers, senior management and staff for three days of conferencing, insightful content and events across […]

  • Tour Operators

Bunnik Tours welcomes KJ Phillips as the new BDM for QLD

Karen (KJ) Phillips has been appointed as Bunnik Tours’ first Queensland-based BDM since Covid, as the small group touring specialist sets their sights on big growth. Phillips is making a comeback to the travel industry after her most recent role as an account manager outside of the sector. Bringing her extensive experience and decades of […]

  • Hotels

Drifter to usher in new age of affordable hybrid accommodation in Christchurch

Leisure Accommodation Collective (LA Co) is set to launch the 95-room Drifter Christchurch on 1 June, the first of its five Drifter hybrid hotels across New Zealand and Australia. Drifter Byron Bay, in the centre of Byron Bay at 1 Lateen Lane, is also set to open this year. Housed in one of the city’s […]

  • Conferences

Delegates ready for Africa’s travel showcase Travel Indaba at Durban ICC

Pan-African global travel showcase, Africa’s Travel Indaba, kicks off at Inkosi Albert Luthuli International Convention Centre (Durban ICC) on Monday, running to 16 May. Durban remains a top destination for both leisure seekers and business travelers. Collaborating with Durban, the province of KwaZulu-Natal (KZN) has bolstered security measures, particularly in tourist hotspots and around the […]

  • Aviation

Air Vanuatu cancels all flights to Australia, files for insolvency

UPDATE 10 MAY: Ernst & Young Australia (EY Australia) have stepped in as administrators after Air Vanuatu operations entered voluntary liquidation overnight. Representatives of EY are now in Vanuatu conducting safety and maintenance checks of the fleet, ahead of resumption of operations as soon as possible. The appointment follows a challenging period for the global […]

  • Destinations

Tropical North Queensland action-packed events calendar for adventure enthusiasts

Sporting enthusiasts and adventure seekers are gearing up for an action-packed year in Tropical North Queensland, with a lineup of sports events and adrenaline-pumping experiences set to take centre stage in 2024. Leading the charge is the highly-anticipated return of the Crankworx World Tour ‘Paradise Edition’ to Cairns from 22-26 May 2024. The mountain biking […]

  • Travel Agents

Disney Days returns with Inside Out 2 showing in Sydney, Brisbane, Melbourne and Auckland

Time is running out for agents to register their Expression of Interest to an exclusive screening of the much-anticipated Disney and Pixar film, Inside Out 2, hosted by Disney Destinations Australia/New Zealand team and partner United Airlines. Places are limited and applications must be in by 17 May. In addition to the screening of the […]

  • Cruise

Aranui Cruises slashes prices with No Single Supplement and Half Price offers

French Polynesian cargo cruise line Aranui Cruises is slashing thousands off its 2025 Austral and Marquesas Islands cruises with an autumn sale offering 50 per cent off the second guest in a twin share room and no single supplement for solo travellers. On sale until June 21, 2024, Aranui’s 12-day roundtrip voyage from Papeete to […]