Greek hotels are hiking the prices of food and rooms for tourists overnight

Greece's parliament approved the bailout package presented by Prime Minister Alexis Tsipras earlier this week, which included some pretty hefty austerity measures. The deal is far worse and more austere than what the nation voted against in the bailout referendum on July 5.

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:

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