The Association of Tour Operators and Travel Agents of the Czech Republic

Tourism industry needs certainty more than ever about the upcoming VAT reform in Greece

PRESS RELEASE OF ECTAA

As one of the main players of the tourism supply chain, the European tour operators’ and travel agents’ association is calling on the negotiating parties for the Greek bailout programme to adopt a swift decision on the future VAT rates for tourism services in Greece and implement any changes gradually to avoid a ripple effect on Greek’s tourism, the backbone of the Greek economy.

ECTAA, the European association regrouping 31 national associations of travel agents and tour operators, are calling on the political leaders in charge of the negotiations, notably the Greek government, the EU and the Eurozone Finance Ministers, and the IMF, to reach a swift conclusion to the negotiations, including a decision on the Greek VAT reform.

Changes to VAT rates, if any, should be implemented with sufficient advance notice, so that they can be integrated into the prices concluded between tourism businesses. They should also be implemented gradually, since a drastic increase of VAT rates cannot be absorbed by the industry and will be passed on to the consumers, who are highly price sensitive. With average VAT rates for tourism services in Southern Europe ranging between 4 and 8%, Greece can quickly price itself out of a very competitive tourism market.

Foreign tour operators, Greek tour operators, travel agents, hoteliers and tourism business are unable to sign or commit to contracts for the next tourist season in 2016. This may have a long-term impact on incoming tourism in Greece.

Yet, tourism is the backbone of the Greek economy. Greek tourism contributes more than 20% to the Greek GDP and covers 60% of the trade deficit balance, while it employs 20% of the workforce and generated 40 billion euros in 2014.

ECTAA has always supported the application of reduced VAT rates for tourism services considering the huge economic and employment growth potential for Europe and the fact that Europe is losing market share to other fast emerging destinations in the world. Said President of ECTAA, Mr. Lars Thykier: “Greece is an important tourism destination for Europeans and tour operators would like to continue selling Greece in their programmes. This is why we call on political leaders to find a swift agreement that will allow Greece to remain an attractive and competitive destination in Europe.”

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ECTAA regroups the national associations of travel agents and tour operators of 31 European countries, of which 27 are within the European Union, and represents some 70.000 enterprises.

Publication date: 17 June 2015

ECTAA - Group of National Travel Agents’ and Tour Operators’ Associations within the EU 

27.07.2015