Table of Contents
Key Takeaways
- 01In an INSETE / PwC model of a 4-star mass-market hotel, Greek taxes and non-wage costs take 29.8% of the guest price (€44.7 of €150).
- 02Greek hotel EBITDA is 56.9% of those taxes and contributions, which is about 17% of the guest price (derived).
- 03Cyprus takes 16.1% in taxes and its hotels earn 171.1% of that in EBITDA, about 27% of the guest price (derived).
- 04Greece ranks last of seven countries on EBITDA as a share of taxes and contributions; Italy is next at 69.8%.
- 05The study estimates a Greek price of €219.5, 46.3% higher, would be needed to match Cyprus's EBITDA.
A model Greek 4-star hotel earns about 17 cents of EBITDA from each €1 a guest pays. Taxes and non-wage costs take about 30 cents. The figures come from a comparison of Greece with its Mediterranean competitors by INSETE, the tourism confederation's research institute, with PwC, published in October 2025. In Cyprus the same model hotel keeps about 27 cents and pays about 16 cents.
What the study measured
The study built a simple operating model of a 4-star hotel in the mass-tourism market and priced a double room plus food at €150 (90% accommodation, 10% food). For Greece, VAT on accommodation, the Climate Resilience Fee and non-wage labour costs and social contributions came to €44.7, or 29.8% of the price. For Cyprus the same items came to €24.1, or 16.1%. These are not luxury-hotel figures: the model is a mid-market 4-star, and the base is the guest-facing price, which includes VAT.
How we get to 17 cents
The study states EBITDA as a share of taxes and social contributions: 56.9% in Greece. Applied to €44.7, that is about €25.4 of EBITDA on a €150 price, or about 17% (25.4 ÷ 150 = 0.169). In Cyprus the ratio is 171.1%, which on €24.1 gives about €41.2, or about 27%. The study itself says Greek EBITDA is about 38% lower than Cyprus's; our figures give 38%, so the derivation matches.
Greece is last of seven
On the study's measure, EBITDA as a share of taxes and social contributions, Greece (56.9%) ranks below Italy (69.8%), Croatia (82.5%), Spain (85.5%), Turkey (91.6%), Portugal (111.9%) and Cyprus (171.1%). The study's estimate is that a Greek hotel would need a room-and-food price of €219.5, 46.3% above Cyprus's €150, to reach Cyprus's EBITDA.
What to take from it, and what not to
- The state is not the only recipient. Part of the 29.8% is social security contributions, which fund pensions and health cover for the hotel's own staff. It is a cost to the hotel, but not a payment to the treasury alone.
- EBITDA is not profit. It is earnings before interest, tax on profits, depreciation and amortisation. A hotel must still pay debt service and maintain the building out of it.
- The author has a stake. INSETE is the research institute of the Greek tourism industry confederation, so this is an industry-side analysis. The numbers come from a model, not audited accounts.
Caveats on the numbers
- Single source. Every figure comes from one study. We have not seen the full methodology, only its executive summary and press coverage, so the 17-cent and 27-cent figures are our derivation from two published ratios.
- Model, not market. The hotel is a simple model 4-star in the mass-tourism market. Luxury, resort and independent hotels will differ.
- Tax shares for other countries. The executive summary gives the tax share of price only for Greece (29.8%) and Cyprus (16.1%). Other countries' figures that circulate, including in our earlier luxury-economics analysis, are not confirmed in the summary and are not used here.
- Price includes VAT. The 29.8% is measured against the price the guest pays, which includes VAT, so the share of net revenue would be different.
Sources
- INSETE / PwC: executive summary of the tax studies (October 2025) (model hotel, tax shares, EBITDA ratios).
- To Vima: Tax burden threatens Greece's tourism competitiveness (press coverage, 24 October 2025).
Data Sources
Data period: 2025 model
Methodology
The study models a simple 4-star hotel in the mass-tourism market with a €150 double-room-and-food price (90% accommodation, 10% food). Taxes and social contributions include VAT on accommodation, the Climate Resilience Fee and non-wage labour costs and social security contributions. EBITDA is stated as a percentage of those taxes and contributions. Our EBITDA per €150 = published EBITDA-to-tax ratio × published tax amount: 0.569 × €44.7 = €25.4 for Greece and 1.711 × €24.1 = €41.2 for Cyprus.
All figures come from one industry-side model and are not audited accounts. EBITDA per €150 and the 17-cent and 27-cent figures are our derivations from two published ratios. The model hotel is a mid-market 4-star, not a luxury property. The tax share is measured against a VAT-inclusive price.
Data-driven analysis of Greek tourism trends, drawing on official Greek statistical and aviation releases, regional tourism studies, port authority data and independent sources to help travelers, businesses and researchers understand the forces shaping travel to Greece.
