SETE is opposed to measures of a purely revenue nature, as stated by the President of the Association, Yiannis Paraschis, on the occasion of yesterday’s “specialization of measures to support entrepreneurship and the productivity of businesses in the primary sector, manufacturing and tourism”

In his letter to the Ministers of National Economy and Finances, K. Hatzidakis, Development, Takis Theodorikakos, Tourism, Olga Kefalogiannis and Deputy Minister of National Economy and Finances, Nikos Papathanasis, Mr. Paraschis notes that he evaluates positive measures that relate to tourism and aim in improving the operation of central administration and local government, as long as they are symmetrical, targeted and accompanied by substantial interventions in upgrading infrastructure, destination management, as well as improving transparency and control procedures.

However, he estimates that measures of a purely collection nature have proven to be ineffective, as they harm the competitiveness and sustainability of the tourist product.

The whole letter of Mr. Parashis

Subject: Positions of SETE following the “specialization of measures to support entrepreneurship and business productivity in the primary sector, manufacturing and tourism”

Ministers, Madam Minister,

SETE and its Members always stand by the side of society, entrepreneurship and the State, with a sense of responsibility and orientation towards sustainable and mutually beneficial actions.

In this context, we evaluate positive measures related to tourism and aim to improve the functioning of central administration and local government, as long as they are symmetrical, targeted and accompanied by substantial interventions in upgrading infrastructure, destination management, as well as improving transparency and control procedures. However, we are opposed to measures of a purely revenue-generating nature, which have proven to be ineffective, as they harm the competitiveness and sustainability of the tourism product.

Following the inter-ministerial press conference on the specialization of the “support measures” announced in the framework of the TIF, we observe the following:

  1. The upcoming increasing resilience to climate changewhich can reach +400% per type of accommodation in less than a year of implementation of the measure without prior accounting for the use of the resources collected since its establishment, raises serious concerns about its feasibility and effectiveness. Such measures do not serve the national strategy for the spatial and temporal extension of the tourist season, as they do not take into account the real price levels and geographical variations, while they risk reinforcing delinquency phenomena. Although the extension of the reduced fee in the month of March is in the right direction, it is clearly not enough to compensate for the excessive increases in the other months.
  2. Regarding the imposition of a fee on the cruiseany increase in applicable port charges must be fit for purpose, proportionate to the investment needs of the ports, applicable to all visitors and ensure that the benefits have a direct impact on local communities. Without the necessary operational interventions in ports and islands experiencing an overconcentration of cruises, the imposition of fees as a single intervention will not have the intended results for the sustainability of the destinations.
  3. On the one hand, the announced charges reduce the competitiveness of the Greek tourism product, especially at a time when accuracy burdens the final consumer of services. On the other hand, the fiscal needs arising from the consequences of the climate crisis cannot be covered exclusively by one sector of the economy.
  4. In addition, it is recalled that the Ministry of Internal Affairs is consulting on a draft law that provides dincrease in the fringe fee in a percentage from 0.50 to 0.75. We have repeatedly emphasized that any additional burden on tourism businesses and visitors will have negative consequences both on the image and on the competitiveness of the Greek tourism product. It is extremely important that central and local government manage levy resources wisely, ensuring that local communities enjoy the benefits.
  5. Finally, it is recalled that the Development Law 4887/2022, although it was passed on 4/2/2022, has yet to show any decision of affiliation for a tourist business. It is crucial to increase the resources for the tourism investments of the Development Law, as the available resources amount to only 300 million, while the applications exceed 1 billion Euro. In addition, it is pointed out that tourism businesses are expecting new NSRF programs for the submission of their investment plans and new announcements of the Development Law which has not yet published an invitation within 2024.

We remain at your disposal for cooperation, so that the debate on a network of policies and interventions that ensures the sustainable development of the sector with a long-term horizon and a substantial footprint for local communities is put on a new basis.

Sincerely,

Giannis N. Paraschis

Chairman of the Board