You can read about the new "austerity" measures in Athens News - How the new measures change our lives
Last week, before the new measures were announced, I was looking at hotel rooms in Athens on booking.com. I was surprised to see that the VAT rate on hotel rooms in Greece was only 5.5% (now increased to 6.5%). Perhaps the logic is to keep hotel prices low - on the basis that tourists want a roof over their heads - and tax everything else they spend more highly.
The VAT rate in restaurants and cafes has gone up from 13% to 23%.
There is an excise tax on heating fuel - the tax has gone up from 21 euros to 60 euros per 1000 litres for households, and up to 412 euros a 1000 litres for "enterprises". I guess that "enterprises" includes tourist accommodation. Most tourists visit Greece at times of year when heating is not needed. But I have also heard that there are differential rates for electricity supplied for domestic and commercial use - so electricity rates payable by owners of tourist accommodation may have increased.
27 July 2011 update
After spending nearly four weeks on a small Greek island some more comments.
I have not noticed that prices are appreciably higher than they were earlier this year.
Prices do vary from establishment to establishment - I have seen a large bottle of Amstel on sale in the periptero at 1.50 euros. I haven't checked the supermarket price. In bars I have seen Amstel priced from 2 to 3.50 euros. But the highest price was in a very pleasant location, where drinkers may perhaps be tempted to linger longer over their beer. So you may want to check the price before you order.
Tourist numbers. I have heard locals say that tourist numbers are down. But there are a lot of people out in the evening, and the ferries arriving and leaving have lots of people arriving and leaving. Here it seems to be places away from the centre (which is not big, walk a few more yards and you'll reach the farthest flung establishments) that are less busy. And if places are less busy, the owners are likely to cook less oven cooked food, and the diner may not find the variety they are accustomed to; so they will move on to a busier taverna.
Taxis. The taxis on this small island are not taking part in the national strike. But knowing that there are no taxis in Athens does have an impact. As there is not the option of taking a taxi from Piraeus to the airport, I will be catching an earlier ferry than I might otherwise have done. And what I don't know is the effect any blockade by taxi drivers might have. I have read of tourists dragging luggage more than 1kilometre in 100 degree plus temperatures because the road to the airport was blocked and vehicles could not get through. And what will the impact of any blockade be at Piraeus? Will it be easy to nip across the road to the metro?
Arriving earlier in Athens means spending a night in Athens. Looking at booking.com, rooms are available. Hottels that I have found fully booked at low season have vacancies. That suggests tourist numbers in Athens are down. Rooms are available, but other factors to consider are the taxi strike - so you do not have the option of getting a taxi if you are hot and bothered after a long and hot and crowded ferry journey.
And the taxi blockade - how easy will it be to get to a bus stop or the metro? And where are the "Indignants" protesting? I have read they are at Symtagma. I have also read that it is not the Syntagma metro station that is affected, but the Fix metro station (I thought Fix was an old Greek beer that has recently been re-launched.................)
Strikes and blockades affecting ferries. I arrived in Greece on a Friday. On the Thursday Pireaus had been closed by a blockade. the two days before there had been a national strike. If I had not booked my ferry in advance, I may not have got on board - the vessel was absolutely packed. In high season (even with lower tourist numbers) ferries do get full. And Greeks are also setting off on their own holidays. The ferry I intended going back to Piraeus on (on a Monday) is full.
Read about the effect of the taxi strike in Athens News - Shooting oneself in the foot
1 August 2011
Despite the strike, taxis appeared to be operating normally on Amorgos.
In Naxos I have seen taxis but do not yet know if all the taxi drivers are working. There may just be fewer taxis than usual at the rank near the port as there are more visitors here than when I usually visit in low season.
I had been wondering how people would get to and from the airport without taxis - for me that is academic as the flights are full!
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