It’s hard for politicians in any country to raise taxes on their citizens. That’s because most people don’t want to pay higher taxes and won’t be thrilled with any elected official who decides to raise their taxes.
Most people, however, have no issues with taxes on tourists. That’s a tactic often justified as being needed to handle the wear and tear on a popular tourist destination’s infrastructure.
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Las Vegas, for example, partially used a tourist tax to pay for improvements needed to roads and other infrastructure in order to build Allegiant Stadium. Adding the National Football League to an already crowded city did require road and other enhancements, but these taxes often don’t go away once a specific project has been completed.
Some cruise destinations are using higher port fees as a way to limit tourism. Others see cruise passengers as suckers who they can bleed dry because where else are the ships going to go anyway?
That’s what’s happening in Mexico, where a proposed tax would add a $42 per person tax for each visit to a Mexican port (whether you get off or not). That money isn’t even going to improve the port or any facilities tourists use. It’s mostly going to the military.
Now, Greece is proposing a tax that would be imposed on cruise line passengers that would pay for repairs from theoretical future storms.
Athens, Greece is a popular cruise destination.
Image source: Shutterstock
Greece looks to tax cruisers more heavily
Royal Caribbean, Celebrity Cruises, Norwegian Cruise Line, Virgin Voyages. various Carnival-owned brands and many other cruise lines make port calls in Greece. The Greek government appears set to make those visits more expensive.
Greece’s parliament voted to approve a bill on Dec. 4 that would increase daily taxes for hotel guests, people staying in short-term rentals, and cruise passengers.
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The tax would be used to offset the impact of natural disasters on the country.
“Due to climate change, Greece is facing an increased number of extreme weather events, such as floods, droughts, and forest fires, which strain its public finances. Tourism is the main driver of its economy, which emerged from a debt crisis in 2018,” Reuters reported.
The proposed increase for hotels and short-term rentals, which would kick in next year, would raise the current tax from 1.5 euros to 8 euros. That’s a more than 500% increase. The tax would be in place during Greece’s April-October tourism season.
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During the offseason, the tax would increase from half a euro to 2 euros.
Cruisers would pay a new 20 euro tax when visiting the popular islands of Santorini and Mykonos and a five-euro levy when porting in other destinations.
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