In 2024, Greece implemented an environmental tax on hotels and accommodations, rebranding the previous bed tax. The tax rates have increased during the peak tourism season, when visitor numbers to Greece’s cities, beaches, and islands reach their highest levels.
The environmental tax now depends not only on the season but also on the type of accommodation. Unlike the previous accommodation tax, the new tax is also applied to short-term rentals booked through online platforms.
Accommodation tax rates in Greece have risen significantly: one- and two-star hotels pay 1.5 euros, three-star hotels pay 3 euros, four-star hotels pay 7 euros, and five-star hotels pay 10 euros. This represents a considerable increase compared to previous rates.
The tax aims to raise additional funds for post-disaster reconstruction. However, the Hellenic Hotel Federation has expressed concerns that this measure could undermine the country’s attractiveness as a tourist destination, even though the government expects to generate 300 million euros from the new tax.
Greece’s step in transforming the tourism tax into a climate tax is viewed as a progressive move toward environmental preservation. Nevertheless, it remains crucial to understand its impact on the tourism industry, especially for travelers aged 18-34, who are particularly sensitive to changes in accommodation costs.
