Letter from Hoteliers to PM: 9 proposals to improve competitiveness of tourism

The Panhellenic Hoteliers’ Federation (PHO) proposes 9 measures to protect the country’s tourism product and enhance its competitiveness in a letter to Prime Minister Kyriakos Mitsotakis.

The Federation notes a “noticeable decline in institutional attention to tourism”, as, as it points out, its contribution to the national economy tends to be taken for granted without the necessary follow-up in measures to enhance its competitiveness, resulting in “already visible” consequences.

As the Federation emphasizes, despite the individual positive signs, this year’s tourist season, in the vast majority of regions of the country, showed signs of slowing down and the first indications for the year 2026 are not encouraging, as the market seems to be shifting, especially in large collaborations with international travel organizations, from a Sellers Market to a Buyers Market.

It also emphasizes that the hotel industry constitutes the backbone of Greek tourism, not only as a main provider of hospitality services, but also as a major employer.

In this context, the Federation proposes to consider the possibility of taking the following measures…

Reduction of accommodation VAT, in order to converge both with the European Union average and with competitors in the sector, Mediterranean countries.
Reduction of the climate crisis resilience fee and explicit provision of its cost-effectiveness. The amount resulting from the reduction should be covered by other sectors of the economy, as addressing the climate crisis is a collective responsibility and cannot be borne exclusively by hotel businesses.
Provision for the mandatory return of municipal fees and transparency in its implementation.
Reduction of social security contributions, especially in sectors such as the hotel industry where labor relations are regulated by collective bargaining agreements, resulting in the minimum wages paid being clearly higher than the legal ones, thereby boosting EFKA revenues.
Completion of the Special Spatial Planning for Tourism and Local Urban Plans.
Establishment of an integrated and strict framework for the operation of short-term rentals, which despite the initiatives that have been taken recently, continues to operate uncontrollably.
Reducing the cost of transportation by limiting the tax burden on fuel.
Increasing advertising spending.
Upgrading and modernizing public infrastructure.

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