Taxation and competitiveness of the Greek travel agencies

  • Mihail N Diakomihalis University of Ioannina
  • Nikolaos Mougios Ministry of Finance, Miaouli 28 Peristeri, 12131
  • Nikolaos-Marios N Diakomichalis University of the Aegean (MSc)
Keywords: Taxation, Tourism, Travel agencies, Competitiveness, Greece


The purpose of this study is to investigate the impact of the tax burden on the travel agencies in Greece as compared to the corresponding effect of taxes on the travel agencies of the competitive countries, Spain, Italy, Croatia, Malta, Cyprus and Turkey.

The aim of this paper is to reveal the impact of taxation on the tourism sector of Greece in relation to the travel agencies of the competitive countries. A primary research was conducted in the travel agencies of Athens metropolitan city.

The results of the research showed that the gross sales increases with a decreasing trend in the years 2014–2016. Furthermore, package tours sales are falling with the highest decrease being recorded in external package tour sales (-6.17 %). The sales of internal package tours  record a decrease of 1.44 %.

The Greek travel agencies believe they have financial losses and competitiveness decline because of the increase in income tax and Value Added Tax (VAT). They consider that have experienced a fall of approximately -53.33 %  in gross sales, as a results of losses from Cyprus, Turkey and Spain.

However, the Greek travel agencies appreciate that the level of their competitiveness (based on the differences in income tax and VAT rates) is the lowest in relation to the aforementioned competitor countries, assessing the most competitive travel agencies to be those of Cyprus,  Turkey,  Spain, Croatia,  Italy and Malta.

The limitations of this work include the issue of fiscal policy which focuses on and explores the main taxation of income and VAT and their rates, ignoring other “secondary” taxes, fines, etc.

Author Biographies

Mihail N Diakomihalis, University of Ioannina
Mihail Diakomihalis received his BSc from City University of N.Y., MSc from State University of N.Y., MSc and PhD from the University of the Aegean. He has more than 20 years of teaching and research experience and is presently working as an Associate Professor in the Accounting and Finance Department of the Epirus TEI. He is also a co-operating faculty in the Program of Business Administration, of the Hellenic Open University. He was Visiting Professor in the “Parthenope University” of Naples. His research interests include Accounting, Auditing and Finance, Economic impact of Tourism, Education, Environment (TSA, ESA, IEESA), Transportation Systems and Regional Development. He has in total about 100 publications in refereed journals, international conference papers (full-text review) and articles in economic newspapers and journals and, more than 200 citations to his published research work
Nikolaos Mougios, Ministry of Finance, Miaouli 28 Peristeri, 12131
Mougios Nikolaos holds a degree in Accounting from the Technological Education Institute of Athens (1985) a Bachelor of Business Administration from Athens University of Economics and Business (1994) and a Master’s degree from the Hellenic Open University in Tourism Administration (2017). He has been an executive for the Hellenic Tourism Organization and is currently working for the Ministry of Finance, since 1992
Nikolaos-Marios N Diakomichalis, University of the Aegean (MSc)
Diakomichalis Nikolaos- Marios holds a Bachelor degree in Physical Education from the Aristotle University of Greece (2014) and a Master’s degree in  Management Planning and Policy of Tourism from the University of the Aegean (2017).


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