Macedonian Tourists Complain about Rise in Greek Prices

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Apparently, Greece is again becoming a costly destination for Macedonian tourists, Telegraf.mk reports. The prices in the markets and accommodation facilities, which in the past several years have dropped to an affordable level, have started to increase. 

The reason for the rise in prices is the austerity deal that Greece has signed with the EU, which entails increase of the value added tax from 12%то 23%.

In general, the VAT in Greece stands at 23%, whereas the VAT for large number of food products stood lower. However, as of Monday, July 20, the value added tax for the main food products will rise to 23%, which will automatically lead to an increase in supermarket prices. 

According to Macedonian tourists, the increase in prices can be felt, although currently, the measures have not prompted drastic jumps. In the summer resort of Neoi Poroi located on the Aegean coast, the accommodation price per day during this period of the year is EUR 45-50 for a small apartment.

"Unlike before, a rise in prices could be seen. The difference is not drastic, but still, the budget is spent quicker" says a 40-year-old Skopje resident who was vacationing in Greece these days.

The popular gyro costs around EUR 3, and is smaller than before. You can eat pizza for EUR 8, while a slice of pizza costs EUR 1.5. The tomatoes cost EUR 1.3 per kilo. The bread is around EUR 0.80, the same as a chocolate doughnut. A liter of milk costs EUR 1.2, while the price for six eggs stands at EUR 1.

Greece hopes that the increase of VAT will improve its budget for EUR 54 million. Moreover, the condition for this to happen is Greeks to buy products with the same intensity as before.


The increase of the VAT for the main food products and certain services was one of the key demands of Greece's international creditors and the move was approved in parliament last week. The VAT for certain food products such as rice, pasta, meat, coffee, tea and sugar will stand at 23%.

The research conducted by the Athens Retail and Hospitality Industry Institute suggests that higher taxes will produce additional EUR 157 to every household in Greece.

The tax in restaurants and hospitality industry will rise as well. Small-size businesses should expect an increase in tax pre-payment, whereas solidarity payment for those with higher incomes will enter into force retroactively with the start of the year.

Good news for the Greek citizens is the opening of the banks on Monday. The Greeks hope that the scene of people waiting in front of their bank offices to withdraw money until night fall will not repeat. However, the restriction of the daily limit of cash withdrawals remains.

Greece is facing another difficult day. The country is expected to pay off the debt to the European Central Bank EUR 3.5 billion. In order to settle this dept, the European Union has voted Friday an emergent approval of a credit worth EUR 7 billion to Greece.

The country still owes the International Monetary Fund around EUR 2 billion. That money will not be forgiven as international financial institutions are waiting for the day when Greece will settle that debt.

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