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Greek Airports Waive Fees To Raise Tourism Cash  
User currently offlineQuokka From , joined Dec 1969, posts, RR:
Posted (3 years 5 months 2 weeks 6 days 6 hours ago) and read 2696 times:

Quote:
Greece said on Wednesday it would waive landing, takeoff and stopover fees for all aircraft using the country's airports in a move aimed at reinvigorating the cash-strapped country's tourism industry.

The waiver will apply from April until the end of the year at all airports except Athens.
http://www.guardian.co.uk/business/2...uropean-debt-crisis-greece-tourism

In an effort to meet its debt problems Greece has hit upon the idea of scrapping fees at airports believing increased passengers visiting Greece will provide more tax revenue in other parts of the economy - accommodation, dining, car rentals, island-hopping, etc. Sounds good for the traveller but how will the airports be funded in the meantime? Will fees at ATH remain as they are or will they be increased? Am I right in thinking that fees are not being scrapped there because the airport is partly privately owned and revenue spent to replace scrapping fees might be seen as a subsidy.

Greece is already witnessing an increase in bookings due to unrest in the middle east. Will the dropping of fees actually result in more passengers spending more in order to cover the losses? Or will Greece simply be adding to its debt burden?

[Edited 2011-03-16 22:38:51]

16 replies: All unread, jump to last
 
User currently offlinecaaardiff From United Kingdom, joined Jul 2006, 190 posts, RR: 0
Reply 1, posted (3 years 5 months 2 weeks 6 days 1 hour ago) and read 2543 times:

Very good idea in my eyes. Greece is a stunning place, mainland and islands. However It really does depend if the airlines actually pass on the saving to the customers.
Airlines are business too, if they are seeing an increase in bookings anyway because of the unrest in other countries, they could keep the savings for themselves.
One of the reasons people are going to other countries (Egypt, tunisia etc) is because the Euro is now so expensive.
So its all well and good waiving fees to try and reduce package prices, but if the consumer doesn't see a change in value of the Euro, this may not well pay off.


User currently offlineburkhard From Germany, joined Nov 2006, 4396 posts, RR: 2
Reply 2, posted (3 years 5 months 2 weeks 6 days 1 hour ago) and read 2506 times:

How much do these fee make per passenger. If I go to Greece or another country does not depend on a price difference of 10 or 20€.

It could be a giant flood of FR planes comes over them, though, bringing hordes of short term tourists.


User currently offlineGarpd From UK - Scotland, joined Aug 2005, 2649 posts, RR: 4
Reply 3, posted (3 years 5 months 2 weeks 6 days 1 hour ago) and read 2500 times:

Quoting caaardiff (Reply 1):
Very good idea in my eyes. Greece is a stunning place, mainland and islands.

Seconded! Great people, beautiful vistas, great food.
Although, I do not like the "don't flush the loo roll" rule!

One hopes the airlines pass this saving on to the punters.



arpdesign.wordpress.com
User currently offlineusdcaguy From United States of America, joined Jan 2004, 965 posts, RR: 2
Reply 4, posted (3 years 5 months 2 weeks 6 days 1 hour ago) and read 2474 times:

The problem with Greece for Americans, unfortunately, is not the airport tax but the EUR exchange rate vs. the USD. When paying in Euros, vacationing there ends up being an extravagance that is hard for most Americans to afford on a regular basis. Anything the Greek government could do to bring down the price of hotels there by about 20-35% would be very welcome and put the country on par with other destinations such as Turkey or Lebanon. Of course, there is sufficient demand at current prices, so I don't see anything changing, but if they want more revenue overall, lowering the price point in more ways than one might be a good idea.

Overall, I think this move is really more than just to encourage tourism; it would likely help Aegean be more competitive and generate more revenue as a result of not paying landing fees in its home airports.


User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 5, posted (3 years 5 months 2 weeks 6 days ago) and read 2403 times:

Quoting usdcaguy (Reply 4):

I second that. It is relatively expensive for Europeans too. You should check the Chalkidiki and Macedonia and Thrace (Northern Greece) - great family hotels, prices are way lower than on the islands. If you consider Greece to be Mykonos expect to be paying up. Americans used to be very privileged before when the $ was more than just printed paper.

Unfortunately for Greece it has a huge tourist sector and a big portion of family income is dependant on tourists and exactly because there are less of them some prices need to stay high to make-up for the loss of visitors. There is also tough competition from Turkey, Bulgaria, Egypt which are priced way lower and usually all-inclusive, which is sometimes hard to match if you're running a small family operation, not a huge 1000 room 5* resort hotel.

As for Greece airport taxes I think it is great idea. ATH airport is very nice, big and very efficient and also under used. If they can bring more flights in - the better.

On another note USA is more attractive to Europeans. I am shocked just how cheap and great value is to visit The States. You wouldn't believe the price difference between Zurich and Miami for simple daily things. I went to Fla, San Fran, Mardi Gras, NYC, Las Vegas, Branson, Cape Cod all in one year (2010) and still had vacation money left. In May i'll be hitting East Hampton (blink blink). Also found the service allover to be quite good and efficient.

= little off-topic =
I was crunching some numbers while in SFO and my cost of living in SFO (if i choose to move there) compared to ZRH would be half of what I pay. Unfortunately healthcare practices in USA are strange and unacceptable to me (the latter being the only thing i can complain about)

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A350WARP
User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 6, posted (3 years 5 months 2 weeks 5 days 23 hours ago) and read 2399 times:

They need to make that excellent facility - ATH into a Hub. One of the first things for that to happen is to have a strong home carrier. I believe the A3/OA merger wanted to move into that direction.

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A350WARP
User currently offlinebj87 From Netherlands, joined Jun 2009, 448 posts, RR: 0
Reply 7, posted (3 years 5 months 2 weeks 5 days 23 hours ago) and read 2342 times:

I think they would have been better off by lowering the hotel costs.

Giving airlines free landings is great for the airline but in the end the passenger is not going to see a massive price difference in the ticket. Most airlines will claim excessive fuel costs and keep the money and even if they didn't a landing fee divided among 180 people isn't that much.


User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 8, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2304 times:

Quoting bj87 (Reply 7):
I think they would have been better off by lowering the hotel costs.

I'm sure they would have if they could but those hotels are private property and pricing is probably not set by the government. I mean how could they.



A350WARP
User currently offlineburkhard From Germany, joined Nov 2006, 4396 posts, RR: 2
Reply 9, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2292 times:

Quoting sofianec (Reply 8):
I'm sure they would have if they could but those hotels are private property and pricing is probably not set by the government. I mean how could they.

VAT

I really see this as an invitation for Ryanair to finally bring the millions from middle of nowhere to Greece.


User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 10, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2281 times:

Quoting burkhard (Reply 9):
VAT

Uhhh well for hotel accomodation VAT in Greece is 6.5% which is in the lowest VAT category. IT used to be in Category 2 - 13% and hotel accomodation was lowered to Category 3 at 6.5%. Regular VAT is 23%. How much lower can it go?

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[Edited 2011-03-17 06:03:33]


A350WARP
User currently offlineGarpd From UK - Scotland, joined Aug 2005, 2649 posts, RR: 4
Reply 11, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2276 times:

Quoting sofianec (Reply 10):

Uhhh well for hotel accomodation VAT in Greece is 6.5%. How much lower can it go?

Zero?



arpdesign.wordpress.com
User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 12, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2268 times:

Quoting Garpd (Reply 11):
Zero?

And the moment it becomes Zero all exempt businesses will stop declaring any income at all (It's a national sport to cheat on tax returns). The profit tax income will also go down to Zero. VAT is also used to track turnover/income.

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A350WARP
User currently offlineGarpd From UK - Scotland, joined Aug 2005, 2649 posts, RR: 4
Reply 13, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2258 times:

I know that, I was being facetious.

It could go lower, but not in any usefull manner.



arpdesign.wordpress.com
User currently offlinesofianec From Germany, joined Aug 2007, 239 posts, RR: 2
Reply 14, posted (3 years 5 months 2 weeks 5 days 22 hours ago) and read 2244 times:

I have been fascinated with Greece recently and was trying to figure out why so many things are not working there. One day I stumbled upon this fascinating article - http://www.vanityfair.com/business/f...010/10/greeks-bearing-bonds-201010 - and it opened my eyes on Greece and Greeks in general. If interested I recommend it.

Note: Maybe a bit off-topic but to fully understand Greece we must look deeper than numbers and facts. In terms of civil aviation - they have great history, great airports, great location, big local traffic (due to islands), developed tourism and still something's not working as it should.

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A350WARP
User currently offlineoa260 From Ireland, joined Nov 2006, 26956 posts, RR: 58
Reply 15, posted (3 years 5 months 2 weeks 5 days 21 hours ago) and read 2192 times:

Good move just as in Ireland scrapping tourist taxes are the way to go and Thomas Cook recently announced Spain and Greece are benefitting due to unrest in Africa as mentioned.

This actually maybe a good lesson learned as with Turkey tourists were starting to get nickled and dimed by stupid prices !!

The recent seat sales by both Olympic Air and Aegean are also a good sign.


User currently offlineburkhard From Germany, joined Nov 2006, 4396 posts, RR: 2
Reply 16, posted (3 years 5 months 2 weeks 5 days 21 hours ago) and read 2181 times:

Quoting sofianec (Reply 14):
One day I stumbled upon this fascinating article - http://www.vanityfair.com/business/f...010/10/greeks-bearing-bonds-201010 - and it opened my eyes on Greece and Greeks in general. If interested I recommend it.

Thanks for that reading!


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