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A note on the effectiveness of price policy on tourist arrivals to Greece


  • Eleni Gazopoulou

    () (Bank of Greece)


This 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.

Suggested Citation

  • Eleni Gazopoulou, 2012. "A note on the effectiveness of price policy on tourist arrivals to Greece," Working Papers 144, Bank of Greece.
  • Handle: RePEc:bog:wpaper:144

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    References listed on IDEAS

    1. Helen Gazopoulou, 2011. "Assessing the impact of terrorism on travel activity in Greece," Working Papers 127, Bank of Greece.
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    Cited by:

    1. Christine de la Maisonneuve, 2016. "How to boost export performance in Greece," OECD Economics Department Working Papers 1299, OECD Publishing.
    2. Lars-H. R. Siemers, 2014. "A General Microsimulation Model for the EU VAT with a specific Application to Germany," International Journal of Microsimulation, International Microsimulation Association, vol. 7(2), pages 40-93.
    3. repec:eee:touman:v:61:y:2017:i:c:p:426-433 is not listed on IDEAS

    More about this item


    Tourism; Current Account;

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism


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