kathimerini.gr
Overtaxation of Greece's Hotel Sector Threatens Competitiveness
A study by the Institute of Tourism Research and Forecasting (ITEP) found that taxes on Greece's hotel sector are disproportionately high compared to other industries, reaching 19.1% of production costs in 2019, up from 15.6% in 2010, negatively impacting its competitiveness.
- How does the disproportionate taxation of Greece's hotel sector affect its competitiveness and overall contribution to the national economy?
- A study by the Institute of Tourism Research and Forecasting (ITEP) reveals that Greece's hotel sector faces disproportionately high taxes compared to other industries, impacting its competitiveness. In 2019, taxes constituted 19.1% of the final hotel product's production cost, significantly higher than the 15.6% in 2010 and considerably above the average for other sectors.
- What are the key factors contributing to the widening gap in tax burdens between the hotel sector and other sectors of the Greek economy since 2010?
- The ITEP study, conducted in collaboration with Panteion University, highlights a 22.4% increase in taxes' share of hotel production costs between 2010 and 2019—much higher than the 13.3% increase across other sectors. This disparity, already substantial in 2010 (73.3%), widened to 87.3% by 2019.
- What policy adjustments could mitigate the negative consequences of the hotel sector's overtaxation on its growth, employment, and contribution to the Greek economy?
- The overtaxation of the hotel sector threatens its long-term viability and its crucial role in the Greek economy. The high interconnectivity of the hotel industry with other sectors (44% of its costs come from other industries) means that these increased taxes ripple through the economy, potentially dampening overall growth. The study suggests the need for tax reforms to alleviate this burden.
Cognitive Concepts
Framing Bias
The study's framing emphasizes the high tax burden on the hotel sector. While presenting data, the phrasing consistently highlights the comparatively higher taxes on hotels, potentially influencing readers to view the situation negatively for the hotel industry. For example, phrases like "disproportionately large degree" and "significantly higher" are used repeatedly. However, the study does provide quantifiable data to support its assertions.
Language Bias
The language used is largely neutral and factual, presenting data objectively. However, words like "disproportionately," "significantly," and "excessive" could be considered slightly loaded, potentially influencing the reader's perception of the situation. More neutral alternatives might include "higher than average," "substantially," and "above average." Overall, the bias is minor, but present.
Bias by Omission
The study's limitations are acknowledged, stating that it uses 2019 data and doesn't include additional taxes imposed on hotel guests, such as the climate change resilience tax and the tourist tax. This omission could affect the overall assessment of the tax burden on the hotel industry. However, the study explicitly mentions these omissions.
Sustainable Development Goals
The study highlights that the hotel sector in Greece faces disproportionately high taxes compared to other sectors. This negatively impacts the competitiveness of the tourism industry, potentially hindering economic growth and job creation within the sector and related industries. The increased tax burden reduces profitability, potentially leading to job losses or limitations in investment and expansion.