The operation of illegal tourism accommodation raises more than 1.5 billion euros turnover and deprives the Greek economy of 350 million euros taxes every year, according to a study executed by Grant Thornton and publicized by the Hellenic Chamber of Hotels.
The “shadow economy“ or “sharing economy” practice flourishes in the tourist industry on a global level, as apartment or home owners utilize internet distribution channels to rent out private accommodation or even single bedrooms to travelers pursuing alternatives to the classic hotel booking.
12 million overnight stays lost
As the president of the Hellenic Chamber of Hotels Yiorgos Tsakiris pointed out, the hosting of tourists in illegal tourism accommodation inflicts legitimate hotels with a loss of 12 million overnight stays and 554 million euros less revenue.
He also appraised that the “sharing economy” phenomenon may become the number one problem for the world of tourism and added: “This is in reality a shadow economy that thrives unfortunately from the inefficiency of the state to recognize and confront the phenomenon to date.”
15,000 fewer jobs
According to the study, the Greek State is stripped of 260-276 million euros every year by failing to trace and tax the income of owners that rent out their property privately by using “sharing economy” platforms. Moreover, the tourism sector is losing about 15,000 jobs annually because of this widespread practice.
Commenting on the study, Economy and Tourism Minister George Stathakis declared that the Greek government is studying the practices adopted by other countries that have already addressed the issue and plans to intervene and regulate the distortions caused by this new tourism trend. Ηe also admitted that the phenomenon distorts fair competition for hotel businesses that operate legally and encourages tax avoidance and illegal labor.
