April 19, 2024 5 min read
I support HORECA: The hospitality and catering sectors join forces

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Seven organisations representing businesses and employees providing services and products in the hospitality and cateringsector (HORECA) joined forces and formed the Alliance, I support HORECA, for the Sustainable Development of the Hospitality and Catering sectors in Greece. The Alliance includes:

The catering and hospitality sectors (HORECA) are the most dynamic sector of the Greek economy. According to iobe's analysis and estimates for 2021 – based on National Accounts data – they collectively contribute Added Value €9.8 billion euros, which corresponds to more than 5.5% of the country's GDP, while the 112,000 companies active in the sector generate about 552,000 direct jobs, which correspond to 11.9% of employment in Greece. Focus and hosting pay off €3.6 billion euros in salaries and contributions. Taxes amount to €1.181 billion euros, an amount corresponding to 2.5% of the state's tax revenue. During the multi-year economic crisis, the HORECA sector decisively supported the Greek economy and employment. However, it is currently facing unprecedented shocks due to the energy crisis, the long-term lockdown and other measures to address the Covid-19 pandemic.

With the main aim of promoting the systematized dialogue at national level, the allied bodies proceeded to the drafting of a Charter of Common Positions and Commitments for the Sustainable Development of the wider hospitality and catering sector in Greece.

The proposals of the Support HORECA Alliance

Through the Charter, the Alliance proposes:

  1. Reintroducing - reducing VAT on residence to 6% - as it was in force until the year 2015 - or otherwise aligning it with the average of EU countries, with the aim of strengthening competitiveness. Indicatively, the residence VAT in Cyprus is 9%, in Portugal 6%, in Spain 10%, in Italy 10% and in Turkey 8%.
  2. Reduction of VAT on catering to 6% in order, among other things, to limit the negative effects of inflation and the particularly high costs caused mainly by the excessive increase in energy prices.
  3. Adjustment of the Excise Duty on alcoholic beverages to the EU average, approaching more proportionally the relationship of taxation with the income of Greek citizens, as well as in response to a) the wave of price increases and b) tax evasion and illegal trade reinforced by high taxation. Today, the EFK rate is the highest in the EU in relation to per capita income.
  4. Provision of compensatory measures to catering and hotel businesses against the effects of the pandemic response measures e.g. extension of the payment of repayable advances for six months and subsidy of employer contributions for catering establishments for the six months 11-2021 to 4-2022 with a scale depending on the drop in turnover compared to 2019-2020.
  5. Immediate issuance of the calls for the funding programs that have already been announced and aim at adapting our businesses to the requirements of the new environmental legislation ("Exoikonomo" program, etc.).
  6. Consolidation of competition in accommodation. Adoption of a legislative framework that will set specific rules in relation to the operation of short-term rentals and provision of obligations similar to those applicable to legal tourist accommodation. Identification of illegal accommodation and enforcement of the prescribed sanctions.

Objectives of the Alliance

For their part, the actors that make up the "I Support HORECA" Alliance have jointly committed to:

  • addressing challenges with social responsibility
  • the development of positive proposals in a spirit of cooperation with the State
  • actively supporting the United Nations Sustainable Development Goals (SDGs) for labour and economic growth, equality, responsible production and consumption and the environment

As part of their commitments, the allies of "I support HORECA" work collectively and systematically for:

  • ensuring quality in their services based on the highest international standards
  • the implementation of modern health and safety standards for consumers
  • ensuring quality working conditions for employees in HORECA enterprises
  • the training and sensitization of employees in tourism and catering
  • environmental protection

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