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New Development Law Causes Criticism

The Greek Government’s support to new accommodation investments in Attica and Thessaloniki causes unfair competition at the expense of hotels that already exist, the Hellenic Chamber of Hotels recently said in a letter to Regional Development and Competitiveness Minister Mihalis Chrysochoidis in regards to the new development law.

According to the chamber’s president, Yiorgos Tsakiris, the government’s support for the creation of new hotels will heighten the observed decline in prices and overnights due to specific social conditions of the last two years, mainly in Athens, and which ultimately led to the closure of at least 10 hotels in the city center.

Mr. Tsakiris said the chamber was puzzled in regards to the new tourism development policy as new high and middle class hotels in over concentrated areas had been approved.

In conclusion, the chamber’s president noted that areas scheduled to receive additional new beds should be determined by objective criteria, environmental and spatial and based on the tourism indicator in each region, such as arrivals at Greece’s entry points, walk-ins and overnights in hotels, occupancy, etc.

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