Greece introduces tax to combat climate change

26-07-24

Greece, a country famous for its island paradises, rich cultural heritage and exquisite cuisine, faces a dilemma: how to manage the growing number of tourists without sacrificing its natural environment. In response, the Greek government has implemented a new “climate resilience levy” to replace the old tourist tax. This measure seeks to address the effects of climate change and fund recovery projects following natural disasters.

As of March 2024, the “climate resilience levy” applies to all tourists visiting Greece. This fee varies according to the season and type of accommodation. During the high season, which runs from March to October, visitors must pay between €1.5 and €10 per night, depending on the category of the hotel. In the low season, from November to February, the rate ranges from €0.5 to €4 per night. One- and two-star hotels charge €1.5 per night in high season, while five-star hotels charge €10. During the low season, the fee ranges from €0.5 for the most modest accommodations to €4 for the most luxurious.

The funds collected through this fee are used for reconstruction and prevention projects. The priority is to repair the damage caused by the forest fires and floods that affected the country in 2023, in addition to implementing measures to mitigate the impact of future natural disasters. The tax, which is paid directly to the accommodation provider, is mandatory for all types of accommodation, including hotels, villas and rentals from platforms such as Airbnb.

The implementation of this tax has generated considerable debate within Greek society. On the one hand, some tourism and hospitality sectors fear that the fee could deter certain visitors, particularly those on tighter budgets. Critics argue that this could negatively affect the local economy, especially in areas highly dependent on tourism. However, other sectors strongly support the measure, seeing it as a crucial opportunity to ensure the long-term sustainability and protection of Greece's natural environment. They see it as a necessary step to ensure that the country is prepared to face and recover from future natural disasters.

The climate resilience levy also aims to better manage the flow of tourists. Greece has experienced tourist saturation in recent years, with cities such as Athens, Santorini and Mykonos receiving millions of visitors annually. This massive influx has put significant pressure on local infrastructure and resources, leading to concerns about the country's ability to maintain its natural and cultural attractions in the long term.

The Greek government hopes that by redistributing the economic burden of tourism towards climate resilience funding, it will not only alleviate these problems, but also promote more responsible and conscientious tourism. In addition, the fee is expected to serve as a constant reminder to tourists of the importance of protecting the environment and contributing to the recovery of communities affected by natural disasters.

In practical terms, the implementation of this fee requires careful coordination with lodging companies and rental platforms. The government has worked closely with these sectors to ensure a smooth transition and ensure that tourists are properly informed about the new fee. Authorities are also closely monitoring the impact of the fee on the tourism industry and visitor response, adjusting policies as necessary to balance economic and environmental objectives.

In summary, Greece's “climate resilience levy” represents a significant effort by the government to address the challenges of climate change and tourism saturation. By earmarking the funds raised for natural disaster recovery and prevention, Greece not only seeks to protect its valuable natural and cultural heritage, but also to ensure a sustainable future for its tourism industry. With this measure, the country hopes to strike a balance between maintaining its attractiveness to visitors and ensuring the preservation of its environment for future generations.