- Despite a busy tourist season in Heraklion, local restaurants report that visitors are spending far less than expected.
- Maria Antonakaki of the Heraklion Catering Association tells Cretalive that high operating costs and low consumption threaten business sustainability.
- The Panhellenic Federation is urging the government to cut VAT to 13% and abolish several special taxes to help the sector survive.
Crete’s restaurants may be serving more visitors this summer, but many businesses say higher foot traffic is not translating into stronger sales.
Hospitality professionals in Heraklion are reporting that while streets, cafés, and restaurants appear busy, customers are spending more cautiously than in previous seasons, raising concerns about the months ahead.
Maria Antonakaki, president of the Heraklion Food Service and Entertainment Association and vice president of the Panhellenic Federation of Restaurant and Related Professions, told Cretalive that the contrast between visitor numbers and consumer spending has become increasingly noticeable.
“We see restaurants full of people, but they’re consuming less,” she said, expressing concern about the industry’s outlook once the summer season ends.
Business owners attribute the trend to broader international economic pressures affecting travelers’ budgets, while restaurants continue to face rising operating costs, including higher energy bills, more expensive ingredients, and increasing overhead.
Industry Seeks Government Support
In response to this crisis, the Panhellenic Federation has sent a formal letter to the Prime Minister’s office, outlining four key measures they believe are essential for the sector’s survival. Their primary demand is a horizontal reduction of VAT on restaurant services to 13%. Currently, if you sit down and consume your coffee at a restaurant or café, it is taxed at a standard 24% VAT rate. The Federation points out that Greece remains one of the few European countries with such a high rate, while others range from 7% to 13%.
The other demands include:
- The abolition of the special tax on coffee.
- The removal of the 0.5% “non-resident” tax on delivery and take-away services.
- The elimination of extra charges for work performed on Sundays and public holidays.
- The activation of new subsidized programs to support businesses.
Antonakaki reminded authorities that the temporary VAT reduction during the pandemic was a lifeline for the industry, calling it the single most effective measure available today.
Digital Rules Also Raise Concerns
Adding to the burden, regulatory inspections have intensified during the peak season. Authorities are focusing heavily on labor law compliance, the digital work card, and the new digital customer logbook.
However, Antonakaki highlighted a major practical issue with the latter, especially for large-event venues. “It is impossible to know in advance exactly how many people will attend a wedding or a baptism. This is an obligation that is extremely difficult to implement in practice,” she explained, calling for a review of the policy to better reflect real-world business operations.