Greek hotels are hiking the prices of food and rooms for tourists overnight
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Greece is being forced to chop up and sell €50 billion worth of the country to the private sector so it can recapitalise the battered banking sector and is raising the pension age as well as cutting payouts. Amongst the changes will be the hike in value-added-tax (VAT) for some sectors, meaning businesses will be stung badly.
The VAT rate on hotels is currently 13% but the agreements says the government will raise this to 23%. Now, hotels are starting to recoup these costs immediately - even if tourists already booked and are staying in hotels at a certain rate and bought food and beverages and put it on their tab.
This is according to a BBC journalist:
Hotel here in Athens quick to put up its charges in wake of Debt Deal VAT rise. This under door last night. #Greece pic.twitter.com/eOVuQ6q450
- Imelda Flattery (@Imeldaflattery) July 17, 2015
"We have the experience from 2011 when the increase from 13 to 23% in food service brought the shutdown of 4,500 enterprises and the loss of 40,000 jobs," he said to Greek news outlet Ekathimerini.
This month, Yorgos Dardavillas, the press officer at the Greek Embassy in London, said in an email: "The tourists who are already here and those who are planning to come, will not be affected in any way by the events and will continue to enjoy their holiday in Greece with absolutely no problem."
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