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Travel & Tourism industry news by Greek Travel Pages (gtp)

Greek Ferry Ticket Prices Rise 10% for Passengers Due to VAT Hike

ferry_WP_000376Ferry tickets in Greece are now 10 percent more expensive for passengers, following the rise in the value added tax  (VAT) rate from 13 percent to 23 percent on many basic goods and services in the country.

Passengers travelling, for example, to Paros from Piraeus will now pay 36.50 euros (against 33.50 euros before the VAT hike) for a one-way ticket.

Another example sees a family of four paying 313 euros for a round-trip (including cabin and vehicle) on the PiraeusChania route, against 297 euros which was the price before the VAT hike.

The price to transfer a vehicle on a Greek ferry has remained unchanged since the VAT for that service was already 23 percent.

According to reports, ferry tickets in Greece were already considered expensive even before the VAT hike, since they include extra charges for third parties such as port fees and surcharge (three percent of net fare) for the financing of routes that sail to remote destinations.

A recent report of the Foundation for Economic and Industrial Research (IOBE) revealed that tax revenue from third party charges (port fees and surcharge) on ferry tickets was estimated at 35.6 million euros in 2013, while revenue from the VAT was some 85 million euros.

Shipping company representatives expect a drop in traffic of around 20 to 30 percent this year, which is 2.5 to 3 million less passengers.

According to IOBE, 65 percent of ferry passengers (some  8.7 million) traveled in 2014 for tourism purposes. Of these, 5.2 million were Greeks and 3.4 million were foreigners.

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