We are experts in legal advice to companies in the tourism industry in Greece. We know the tourism sector and its legal features.
We advise hotel companies, tour operators, airlines, investors in the hotel sector. We also advise with respect to the privatization program of the Greek state and M&A for companies in the tourism sector. Lawyer Pilios is the author of the chapter “Hotel Acquisitions in Greece” in the official guide to Greek law in English by the Trade and Invest Agency of the Greek State “Enterprise Greece” (www.greeklawdigest.gr) and has acted as legal advisor and expert on tourism law as part of an advisory mandate for the Greek privatization fund (www.hradf.com) for the development of 7 healing springs to be privatized and expert opinions on tourism law.
Tourism is one of the most important economic sectors in Greece, with a contribution of over 30% of GDP and a share of over 25% of total employment. With a population of 11 million, the country receives around 30 million visitors a year, with the number of visitors – despite the crisis – steadily increasing. Of course, this also has an enormous appeal for investors and turns Greece into a serious tourist location. Hotels, charter boats, special facilities such as marinas or healing springs are the focus of investors here.
A multitude of legal relationships arise in this special service sector, which require cross-legal support. Contract law, company law, labor law, real estate law, building law, company purchase, debt collection, financing and their protection are just a few of the legal areas that are used in addition to special regulations in tourism.
Allotment contracts are legally defined in Greek law and the following minimum requirements are set by law for the content of the agreement: price, duration, room type (SR / DR) and the agreed maximum and minimum number of nights.
If a certain room allocation is rented for a season or a fixed period, a guarantee contract is agreed.
The Greek courts have developed a surprising case law for both types of contract.
If room contingents are to be secured in the long term without the hotel property being purchased, a suitable property can be leased and operated itself.
Hotel owners who do not want to operate their hotel themselves can either lease it or conclude a management contract with a hotel company.
In order to ensure the smooth running of these contractual relationships, it is essential to have legal and industry knowledge when drafting the contract.
A sector-specific, nationwide labor agreement applies to employees in the hotel industry. This contains regulations on minimum wages, grants and working conditions. The valid collective agreement was signed on March 27th, 2018 and is valid until August 31st, 2020 after extension.
If local collective agreements have been agreed, such as on Rhodes or Crete, these will supersede the national collective agreement. In the event of gaps in the regulations, the provisions of the Greek Civil Code on employment contracts (Art. 648 ff. GR Civil Code) apply.
The purchase of a hotel is an investment in a purpose-specific property. The specific purpose is the hotel operation, it is directly connected to the hotel property. Compared to a “normal” real estate investment with a main tenant, a complete tourism company with several divisions is acquired here. In addition to renting rooms, there is usually a restaurant, bar, conferences, excursions etc. Third parties operate a car rental, a spa or watersports.
All of this must be taken into account in the course of the purchase, checked and contractually secured.
