The new green taxes to be applied include a 5 cent per liter fuel tax, a 1 cent per cubic meter water tax, a 7 cent per liter carbon tax for production, and a €2.5 accommodation tax per room for each night in hotels.

However, it has not yet been clarified when these taxes will be imposed, with hoteliers awaiting official notification. The potential implementation of the green tax per night within 2024 could significantly impact hotels since holiday packages have already been sold for the summer season.

Information indicates that the implementation of this tax may occur either at the end of 2024 or the beginning of 2025.

As mentioned in a previous report, hoteliers are concerned about potential issues, as Cyprus heavily depends on tour operators (50%-60% of bookings come from travel organizers). These operators seem likely to demand that the cost be indirectly absorbed by the hoteliers, as they would not want increases in package prices.

At the same time, questions arise about how this tax will be collected from hotels, as there is no information on this aspect either. However, the prevailing scenario is that it will follow the model in other countries where such a tax is implemented. This means the amount would be secured upon arrival at the hotel and paid upon departure. Still, as noted, there is no official information yet.

It should be reminded that, according to initial plans, the state estimated that implementing this tax in 2024 would generate €34 million in revenue, which would be returned in the form of subsidies for improvements in environmental and energy infrastructures.