A recently completed study by the Institute of Tourism Research and Forecasting (ITEP) highlights the total taxes that burden the cost of production of the hotel product.

The present study was carried out in the framework of a research collaboration between FORTH and Panteion University, under the scientific responsibility of Mr. George Soclis, Assistant Professor of Panteion University. The aim of the study is, on the one hand, to estimate the tax burden of the hotel sector through the decomposition of its production costs and, on the other hand, to compare the findings with the corresponding figures that apply, on average, to the other sectors of the Greek economy. 

It is emphasized that the theoretical framework of the study was based on the methods of input-output analysis, while for the empirical estimates, data from recent supply and demand tables of the Greek economy were used. It should be noted that the research approach adopted estimates only the tax burden on the production process and does not take into account the burdens arising from income taxation. 

In summary, the main conclusions of the study are as follows: 

• The net taxes that directly and indirectly burden the cost of production of the final hotel product constitute 19.1% of the total cost of production, compared to 10.2%, which is, on average, the corresponding burden for the other sectors of the Greek economy.
• The participation of net taxes in the cost of production of the final hotel product is 87.3% higher than that of the other sectors of the Greek economy, having increased by 14 percentage points over the last decade.
• The increase in the share of taxes in the cost of production of the final hotel product during the period under consideration is almost twice as high as the corresponding increase in the other sectors of the Greek economy (+22.4% compared to +13.3%).
• Total tax and insurance charges have increased, accounting for almost 14% of the cost of production of the hotel product (23.5%), up from around 15% a decade ago (19.9%). In contrast, in the other sectors of the Greek economy, the corresponding figure is 15.6%, up by only 1 percentage point over the same period.
• 44% of the income generated by the hotel sector is distributed to the non-hotel sectors of the Greek economy, compared to the 28% distributed on average by the other sectors of the Greek economy.

On the other hand, almost 34 (72.6%) of the total net taxes on the cost of production of the hotel product are borne by the factors of production in the hotel sector. The above estimated inequality in the distribution of the tax burden on the hotel product has become significantly sharper in recent years, as the corresponding burden stood at 61.7% a decade ago. 

Commenting on the findings of the Institute's study, the President of FORTH, Mrs. Con/na Svynou, says: "Looking back at the main findings of the survey, the high tax burden of the hotel sector and its unequal treatment in relation to other sectors of the Greek economy can be easily distinguished. At the same time, it becomes clear that the hotel industry generates income, which is distributed to other sectors of the economy at almost twice the average of the other sectors. 

This fact, however, removes key weapons from the quiver of the country's competitiveness in tourism in relation to other countries, forcing the Greek hotelier to sell more expensive with charges that are not attributable to him or to absorb the costs, making it difficult for him to operate healthily. In addition, it suffers additional duties, such as the overinflated resilience fee, the increase in transient tax and municipal fees, as well as the arrows of unfair competition from short-term rentals, which continue to operate in a grey legislative and control environment."