Greece’s “modernization and development tax,” the so-called spatosimo, imposed on international and domestic passengers departing from all Greek airports, will be revised as of 31 October 2014, the Greek press said recently.
Imposed on airline tickets since 1992, the spatosimo tax currently stands at 12 euros for European Union passengers flying to any airport in Greece and 24 euros for non-European Union travelers. The tax is charged for the modernization or construction of airports in Greece.
According to reports, the Greek Government decided to revise the spatosimo tax and introduce a new, lower fee following constant requests from airline companies and tourism professionals. A lower air passenger tax would lead to cheaper airfares, something that would boost Greek tourism’s competitiveness.
The new fee is said to be a key point in the renegotiation of the Airport Development Agreement signed between the Greek State and the private consortium (led by Hochtief Aktiengesellschaft at the time) for a 20-year extension. The agreement was first signed in 1996 and its renegotiation may possibly take place in 2015. The agreement expires in 2026.
Last year, Hochtief sold its 40 percent stake in the Athens International Airport to a subsidiary of the Canadian Public Sector Pension Investment Board (PSP Investments).