Taxation and competitiveness in hotel branch: The case of 4 and 5 star hotels of Kos island, Greece
Diakomihalis, Mihail N.
The present paper investigates and evaluates all kinds of taxes, municipal dues and
other tax charges imposed on the hotel businesses, and determines the influence of
taxes to the hotel competitiveness.
This research goal is pursued, with the implementation of a methodological frame for
the definition and assessment of taxes, fees and other charges, regarding four and
five-star hotels on the island of Kos, by means of a suitably structured questionnaire
and an interview.
Based on the empirical results, our analysis reveals the great size of tax charges
imposed to hotel sector, noting they also have a non-reciprocal nature regarding the
Furthermore, the research on a theoretical basis, suggests ways of obliteration
obstacles and forwarding the development of hotels such as: tax facilitations,
reduction of bureaucracy, abolition of certain municipal dues and charges and their
incorporation as a percentage form into the hotels profits.
Finally, alternative policies for improved structural programming and effective
application of a tax policy are suggested, along with the improvement of the provided
services quality and the creation of competitive advantage in the hotel branch.