A note on the effectiveness of price policy on tourist arrivals to Greece
AbstractThis paper aims at pointing out the adverse repercussions on the Greek travel industry resulting from the contradicting policy measures taken by the various governments due to the lack of a consistent strategy on tourism. The analysis takes as an example the reduction of the VAT from 11% down to 6.5% for hotel accommodation which has been followed by an increase of the VAT from 13% to 23% for certain categories of restaurant services. The paper concludes by underlining that the damage done is not so much the net negative impact of the two specific measures and their disappointing fiscal performance, as the adverse repercussions that they entail for the market through the confusion that they cause, thus discouraging both tourists as well as prospective foreign investors.
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Bibliographic InfoPaper provided by Bank of Greece in its series Working Papers with number 144.
Date of creation: May 2012
Date of revision:
Tourism; Current Account;
Find related papers by JEL classification:
- L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
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- Helen Gazopoulou, 2011. "Assessing the impact of terrorism on travel activity in Greece," Working Papers 127, Bank of Greece.
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