Greece introduced a “climate tax” for tourists starting in 2024. Despite the severe forest fires and floods that occurred in Greece during the summer months, the tourism sector is experiencing an upswing, with the country expected to surpass the previous record of 33 million visitors this year.
The Greek government plans to use this increase in tourism to finance post-disaster reconstruction efforts.
Greek Prime Minister Kyriakos Mitsotakis has promised comprehensive support to the victims of the flood disaster and emphasized the government's commitment to restoring what was lost. At the tourism fair in Thessaloniki, Mitsotakis announced the establishment of a fund for natural disasters and the introduction of mandatory full insurance against natural disasters for all companies. The tourism sector will play a crucial role in financing these measures and the reconstruction efforts.
To cover the costs of reconstruction and support for victims, Greece will replace the previous bed tax with a new “climate resilience levy” starting in 2024. This fee will vary depending on the travel season. From March to October, the new tourist tax will increase accommodation costs. The fees for hotels will increase as follows: 1.50 euros per night for one or two-star hotels (previously 0.50 euros), 3 euros per night for three-star hotels (previously 1.50 euros), 7 euros per night for four-star hotels (previously 3 euros), and 10 euros per night for five-star hotels (previously 4 euros).
The Greek government expects this new regulation to generate up to 300 million euros in additional revenue in 2024. Unlike the previous accommodation tax, the new tax will also apply to short-term rentals booked through online platforms. The fees for apartments will be 1.50 euros, while single-family homes and luxury accommodations will be charged 10 euros per night.
Grigoris Tasios, president of the Panhellenic Hoteliers Association, expressed concerns that this increase in taxes could have a negative impact on tourist numbers in 2024. However, during the low season from November to February, the new tax will remain at the level of the old bed tax, between 50 cents and 4 euros per night, in an effort to stimulate winter tourism in Greece.
To better manage crowds at popular attractions such as the Acropolis in Athens, Greece has already introduced a reservation system. The country also plans to extend the tourism season in order to spread out the crowds over a longer period.
