A new reality in the Greek Hospitality sector is created by the deregulation of  the tourist accommodation and furnished properties markets provided by Law 4336 / 08.14.2015, enacted since November 1st.

As Tornos News reveals exclusively today, an “Association of Let – Owners Apartments and Houses throughout Greece” has already been created and chaired by the interim administration of George Kanellopoulos with the immediate purpose to contribute in shaping “a licensed and regular operation framework” for tourist rented properties, “according to the rules of the free market and free competition”, as Mr. Kanellopoulos underlines.

In the note that follows, Mr. Kanellopoulos presents the new Association and its purposes:

TOPIC: Liberation and operating rules of the market rent of furnished apartments at implementation of the Law 4336/14-08-2015

On behalf of the “Association of Let – Owners Apartments and Houses throughout Greece” which was established a few months ago, gladly we ascertain that the time came to operate the rules of the market economy and free competition in the field of renting furnished apartments and housings, having as our outmost goal to strengthen the competition, growth and the employment rates.

Under Law 4336 (GG (Government Gazette) 94/14 August 2014), which validates the “Financial Assistance Contract by the European Stability Mechanism and modalities for the implementation of the Funding Agreement,” which enforces a more dynamic sector of this particular economy.

Prerequisites 

Specifically, with this particular provision-guidance for of market liberalization of the tourist accommodation (pg. 1972), describes the prerequisites for which “the authorities will introduce legislation aimed“, among others, “to liberalize the market of tourist accommodation”. It is also reported that “until October 2015, the authorities will introduce legislation in order to fully take effect the release of tourist accommodation”.

Prompted by the above Association of Let – Owners Apartments and Houses throughout Greece, we would like to express our satisfaction because for the first time is initiated a solution that will promote the development, at zero cost for public finances. At the same time we would point out the need to quickly materialize the above direction which already is part of legislation of the Greek State.

Mature state

Based on this information, we have the honor and pleasure to inform you and to table our proposals for a number key issues regarding the whole matter of both the release and the market functioning rules of rented apartments-residences, for short and long term use without provision of amenities services.

The conditions are now in a mature state for the establishment of an authorization context and standard operation, according to the rules of the free market and freedom of competition. The benefits are going to be several, both in the real economy and development, as well as in a government revenue level.

Τriple aim

The final goal, through this framework, is to achieve the triple aim:

·        Establishment of normal functionality of rented furnished apartments and residencies.

·        Ensuring taxes and additional economical resources for the Greek State.

·        Ensuring all the rights of the guests and users of the rented flats and housings.

Particular service

According to this particular service, specifically the rented furnished apartments, for short and long term usage without provision of any amenity services:

–        It is a relatively new product for the Greek market, both in the field of making it available for usage of flats and houses, as well as in the Greek tourist market and therefore it has the need of a legislative framework that can lead, without exclusions which distort the free market, in a simpler and more functional licensing form.

–        This particular product is not necessarily competitive – in the narrow term – as some falsely consider against the hotels, since it offers something oppositely variant from them, and in many cases comes to supplement or to fill existing gaps. Also it has its own target group which the hotels would not be interested in. At the same time, it contributes to the dissemination in the culture of tourism and similarly its tourist awareness in the Greek society.

–        Specifically, in Athens and the wider region of the capital, where we witnessed for the past few years a devaluation of the city as a tourist destination, as it was also reflected by the closure of key hotel units, the furnished apartments-residences functioned, to some extent, as a lifeline contribution, to keep Athens and surrounding areas of the capital afloat as a short-stay residency for all seasons.

Substantial part

–        To explain furthermore to whom this product is addressed for different types of recipients, a substantial part of which might not even visit Greece, if this group had not got the chance to live in a furnished apartment-residence. Also there’s a group of travelers who move within the Greek boarders for various non-tourist purposes, e.g. business, social, medical reasons etc., who wish for their own purposes to stay in an apartment-residence.

–        At the same time furnished apartment-houses, create a new target-group and positive chain effects throughout the turnover of the tourism market and not just that. The important thing is that the revenue from this activity are channeled directly to the internal market. Specifically on conditions such as these which prevail currently in the Greek economy, only positive consequences has this particular relative action.

Fair share

Conclusively, it would not be an exaggeration to refer that the apartments-residences have their fair share and additionally their own contribution to the increase flow of tourists in our country in recent years, as this is recorded in annual rise of arrivals. This observation makes it even more urgent the need of such an adjustment which takes into account new data and especially will immediately unleash productive forces.

What is needed is a framework with the usage of no exclusions but just normal operation and licensing, which not only will cost anything for the Greek government, but on the contrary it would bring benefits to the state funds through administration fees and annual taxes.

State benefits

–        We do not ask for any State or Community grants

–        We do not ask for any funding from any bank

–        We do not ask for any tax relief an neither any exemption from the ENFIA (Unified Property Ownership Tax)

–        We do not ask for any integration in any State or Community funding program.

No positive results

Especially since it is widely known internally that such financings had occurred and never brought any positive results. We have acknowledged  hotels to be sealed just to be created only for the approval and acceptance of the funding. We have witnessed ‘legitimate’ ‘tourist’ houses, only hosting … the owners, despite State and EU funding and grants for tourist use only.

Instead, the institutionalization, without exclusions, of a normal operation and licensing of rentals of the furnished apartments and housings for short and long term usage without provision of treatment services, ensures new job positions without the deduction from a similar line of work, with zero government funding but also economic benefits for public funds from fees and taxes. It is a zero cost investment that only has positive effects on the Greek economy.

Operational framework

Apart from anything else the establishment of an operational framework which relates to furnished apartments – housing for short and long-term use, it is within the same function of the free market and free competition. It is something that is already happening in other countries of Europe and America.

We are not asking neither state protection nor unaccountability from the State.

The request is a framework of a normal operating conditions, without any minimum and maximum duration of the lease, which would not exclude but on the contrary, it will integrate all cases of the furnished apartments – residences on offer for short and long-term use if they fulfill the requirements of legal residence and have the necessary equipment which is needed.

Existing framework

The existing framework, which sets the minimum length of a lease in one month duration, does not cover the above necessity, neither of course would alter anything if this time limit was diminished. This is not considered as liberation but on the contrary. Either way, the requirements covered by furnished apartments – residences cannot obtain by setting various time restrictions.

Ultimately we asking for the Greek State to collect with coordination, in the form of taxes, a fair share of this activity as the State legislates. With regard to the terms and conditions for normal functionality of rented furnished – apartment for short and long term usage without provision of treatment services:

 Home residence

This product objectively comes to provide a service in proportion with the hospitality in a home-residence. Therefore we must comply with the terms and conditions for a safe stay in a residence, whether it is house or an apartment, among others, in an apartment building. These, after all, are secured by the in force legality in the framework of the property for housing which is more than adequate and modernized.

You are requested courageously, to face the harsh reality. In addition, this action is already in the context of market liberalization set by Law No 4336, from the agreement with the institutions of the creditors of our country, voted by the Greek Parliament on August 14, 2015.

Pathological phenomenon 

We do not suggest to you the recognition and legitimization of a certain pathological phenomenon of the tourist market but the release from the shackles of the past and distortions of protectionism which will bring a healthy phenomenon that contributes to economic growth.

You are called to define the operating framework of the rules that will be applicable and functional in order to combine the well-known Greek hospitality with some specific requirements, without exclusions but also without privileges.

 Recoiled framework

There can be no development with a recoiled framework that perpetuates a protected era of the past, as the 1986 Ministerial Decision on “controlled tourism development.”

This Ministerial Decision of 1986, reflecting the status of the clientele system and the privileges which was providing, reasserted by later Laws and Ministerial decisions. This sets prohibitions based on any raw data originated from that particular era, on the creation of new accommodation, describing as “saturated tourist” entire regions of the country, almost all of Attica. Really, how “saturated tourist” are areas like Perama, Galatsi, Tavros, Peristeri and others? And yet, it was officially “saturated” since 1986!

 Specific conditions

Based on the above, it is estimated that the settlement will be done on the integration of rented furnished divided – houses in the same context as the independent rented residencies without time limitations on the duration (minimum or maximum) of the lease term, without other restrictions voiding market liberalization. From there onwards, they can without distorting the release, to set specific conditions and standards which should abide to for authorization of the apartment-houses, based on the specifications in terms of functionality and equipment of a modern urban or rural residence.

In pursuance of what the Law dictates 4336/14/08/2015, we appreciate that there could be reform of the ministerial decision issued accordant to the Law 4276/2014 on “Simplification process works tourism businesses and tourist infrastructure, special forms tourism and other provisions “, and in particular on the Article 1, paragraph 2, subparagraph b (for the not-main hotel accommodation), on the indent cc, which states that ” A decision of the Minister of Tourism sets out the technical and functional specifications of rented furnished rooms – apartments. ”

Promotion abroad

Also, we dare on a good heart to propose: the revenue generated by the licensing of refurnished apartments – houses to be available for promoting Greece abroad, especially online, focusing on promotion of Athens and the region of as a destination for all seasons.

It would be a great pleasure and honor for us if we could arrange a meeting with you personally, in order to exhibit and further explain all the above ideas.

Athens 10/09/2015

With outmost respect,

PRESIDENT OF THE PROVISIONAL ADMINISTRATION

GIORGOS KANELLOPOULOS

CONTACT INFORMATION

GIORGOS KANELLOPOULOS MOB. +306944120103, georgies13@gmail.com

Source: http://www.tornosnews.gr/en/