Hotels Obliged To Maintain Last Year’s Minimum Rates
Greek hotels are to maintain last year’s minimum prices for this season until 31 March 2010, according to a recent decision by Tourism Minister Kostas Markopoulos.
The Hellenic Chamber of Hotels has pointed out that room prices should be decided based on the current conditions of the tourism market as a result of the global economic crisis.
In addition, the chamber said that hotels can proceed with discounts even up to 50 percent but should not “fall” below the minimum prices.
Meanwhile, Economy and Finance Minister Yiannis Papathanasiou recently called upon hoteliers to reduce prices not only to foreign tour operators but also to Greek citizens.
According to reports, the minister believes that if hotel prices drop then domestic tourism will rise and thus hoteliers will be able to demand better loan conditions from banks. Mr. Papathanasiou pointed out that if prices remain high the turnover of hotels will remain low and therefore banks will not comply with the claims of hotel owners.