Greece has submitted a new reform plan to the Eurogroup, hoping to convince international lenders to accept a bailout plan for its defaulted economy and the restructuring of its debt exceeding 320 billion EUR. The reform plan includes a VAT increase for the hospitality industry, reaching 23% for catering services and 13% for the hotel industry.
Carmen Pavel, Director of the J’Info Tours travel agency, stated that this increase will have a negative impact on the tourism sector and will lead to a decrease in the number of visitors amid rising prices.
Destinations such as Bulgaria or Turkey are catching up and could take over the tourists, while another option meeting tourists’ needs is Albania, Carmen Pavel explained.
Pavel also mentioned she hopes the Greeks will carefully analyze these measures, which will affect tourism.
Source: Wall-Street
Frequently Asked Questions
What are the new VAT rates proposed in Greece?
The reform plan includes a VAT increase to 23% for catering services and 13% for the hotel industry.
How will the VAT increase affect the number of tourists?
Experts predict a decrease in visitor numbers as the tax hike will lead to higher prices for travel packages and services.
Which alternative destinations might benefit from this change?
Countries like Bulgaria, Turkey, and Albania are expected to attract tourists looking for more affordable options.