Efforts are intensifying across all stakeholders in the hotel industry and the broader tourism sector to better manage the impact of the prolonged war in Iran on this key pillar of the economy.

The shared objective is to support hotels in weathering the crisis while safeguarding jobs across all units.

Within this context, two Ministers and two Deputy Ministers held a meeting lasting approximately two hours yesterday with the professional associations representing hoteliers, PASYXE and STEK.

Present at the meeting were the Ministers of Finance and Labour, Makis Keravnos and Marinos Moussiouttas respectively, along with Irene Piki, Deputy Minister to the President, Costas Koumis, Deputy Minister of Tourism, and the leadership of the two hotel associations.

Hoteliers described the current state of the tourism industry as deeply concerning and presented specific data indicating a sharp decline in occupancy rates across hotel units.

They expressed the view that the government should return with more effective support measures for the hotel industry, which they stressed remains a key revenue driver not only for the state but also for the wider tourism ecosystem and beyond.

They argued that the wage subsidy for April, as announced by the President, is not sufficient to meaningfully reactivate hotel units that were expected to reopen within the month.

The leadership of PASYXE and STEK urged the Ministers and Deputy Ministers to submit a proposal to the President to increase the wage subsidy rate to 50%, up from the current 30% set by the Council of Ministers.

The Minister of Finance responded that the government had already acted generously, in his view, in supporting the hotel industry, livestock sector, and agricultural community.

He emphasized that caution is necessary at this time, noting that the global economy is facing significant uncertainty.

“The war,” he said, “is continuing without a clear end date.”

In a measured tone, he rejected the hoteliers’ request, suggesting that the state might ultimately need to subsidize the entire economy if the conflict persists.

At this point, Marinos Moussiouttas added that the 30% wage subsidy for employees in operating hotels is intended to support employment.

The wage subsidy scheme for hotel employees closely mirrors a measure introduced during the COVID period in 2021, originally proposed by the late Zeta Emilianidou and fully adopted by former Finance Minister Constantinos Petrides during the pandemic crisis.

Hoteliers also briefly raised a previously rejected request regarding the extension of unemployment benefits through April.

They were informed that this remains a firm decision by the Council of Ministers and will not change, at least for now.

During the meeting, hoteliers presented data on bookings and cancellations for March, April, and May, as well as booking trends for the summer months.

Comparative data for the same periods in 2024 and 2025 show a decline in occupancy rates ranging from 20% to 40% across hotel units nationwide, depending on the number of beds.

Job security across hotel units and the possibility of layoffs are key issues that will be discussed by trade unions in a meeting with the Minister of Labour.

The meeting, confirmed by the Minister, is scheduled for 08:30 at his office.

It will include the general secretaries of the hotel workers’ federations of SEK and PEO.

Also present will be Antis Apostolou, Director of the Department of Labor Relations, Evangelia Georgiadou, Director of Social Insurance Services, and Alexandros Alexandrou, Director of the Department of Labour.

According to union sources, the meeting will also address the suspension of permits for employing workers from third countries in the hotel industry.

Trade unions argue that priority should now be given to protecting the domestic workforce.

If conditions improve and hotel occupancy rates increase, the agreed process among social partners could then be reinstated.

Source: Brief