Plakias Forums
Plakias => Plakias => Topic started by: John R on April 28, 2015, 11:12:54 AM
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i have read today in the Telegraph financial pages that the Greek tourist board is advising all travellers to take with them adequate cash for at least five days in case ATM's are out of action if the financial crisis worsens. If there is a major crisis, ATM's may be the first to close down. I don't feel anyone should be reluctant to travel to Plakias - they need our support but just make sure one doesn't run out of cash.
I always take adequate cash anyway and I think that if there is a major crash in Greek finances while we are there then that cash will be very acceptable indeed wherever it is spent. I usually pay in advance via currency transfer for car hire but wonder about reverting to the norm of handing cash over to rep when collecting car. Unfortunately this would mean being met by the Autoway rep at airport rather than our current mutually convenient arrangement of finding the car ourselves in their car park. I could drive to their office in Rethymnon some time during holiday to pay them I suppose. They trust me and I once did just that. My fear would be a financial bank crash immediately after transferring funds with them not being accessible to the car hire firm.
Difficult times for the Greeks - lets do what we can for our Plakias friends.
John R
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A salutary warning John. For the first years of my Greek holidays (80s and early 90s) the worry was tensions with Turkey. Nowadays, as you say, it is worry that the financial situation will worsen or that Greece will leave the €, which many think is inevitable with Greek debt being so high.
Personally I never rely on the Plakias ATMs as there have been many posts over the years re. their unreliability.
I wonder if new drachmae have been printed in secret to be used if the worst happens.
Mike
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Difficult times for the Greeks - lets do what we can for our Plakias friends.
If you really want to do what you can for our Plakias friends, then I suggest you avoid circulating such articles. Not only are these claims groundless, but they also do not reflect reality.
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Only repeating what the Greek tourist board advises. If one is not prepared to heed simple official advice then I suggest a holiday in Eastern Ukraine or similar might be interesting. I have absolutely zero worries about visiting Greece in the current climate but a few simple harmless cost free officially advised precautions may be worthwhile publicising so that fellow travellers may have a worry free holiday as always in Plakias.
John R
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Hi John R,
I wonder if this advice is official. To be honest, I do believe that the "advice" is not harmless. It can cause panic and fear and I don't think it's really needed.
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"Only repeating what the Greek tourist board advises"
Thanks John for the good advice. There is certainly plenty of information out there for people to read & judge. No way should we be looking to censor information. We were in Crete on Black Wednesday (1992) & extra cash would have been very helpful. Anyway we are off to Corfu this week and will be carrying more cash than usual.
Stuart.
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Please, don't get me wrong. I didn't say that anyone should censor anything. But my advice to you is to be a bit more sceptical with what you read on the Internet.
Have fun in Corfu. I don't know about extra cash but you will definitely need some extra sunscreen. It's getting really hot here.
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"But my advice to you is to be a bit more sceptical with what you read on the Internet."
I am sorry but I am not sure why you think I need to be more sceptical, or how you have come to that conclusion. There is a lot of information on the internet & in the national press, not to mention the regular updates on the world service. The advice from John seems pretty sensible especially as Greece is moving into unchartered waters. Hopefully the situation will become cleared as the summer moves on.
S.
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You could also take a bulletproof jacket in case of a terrorist attack. That would be a sensible advice as well. Especially if you consider what has been happening in Europe during the last months.
No need to panic. Greece may be a poor country now but won't let you run out of cash. Enjoy your holidays!
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Hi John R,
I wonder if this advice is official. To be honest, I do believe that the "advice" is not harmless. It can cause panic and fear and I don't think it's really needed.
I really do find it incredible that the advice to take a bit of cash with you on holiday could cause panic or fear. Unlike your suggestion re bullet proof vest - that would be for Eastern Ukraine.
We are all aware of the Greek financial crisis (I would think) and my post advocates ignoring that crisis re any decision on holidaying in Plakias because with taking absolutely minimal basic precautions (carry a bit of cash) one need not worry whatever happens. Simple.
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Just done another hunt on the net and it is now very official advice for UK Foreign office as well :-
The UK's Foreign & Commonwealth Office is advising travellers to take enough cash with them to cover expenses for three to five days if they are going to Greece.
John R
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Something else of importance that the Greek Govt is rushing to be law within weeks (?) which among other things means any transaction greater tha 70 euros must be paid by debit or credit card. I will copy below the info I have which is posted on the reliable Sfakia forum. Apologies if yet again I seem to be scaremongering but if you are aware of these things (if they happen) then you can easily enjoy your stay, as always in Plakias. :-
The government is rushing to implement tax reforms by the next Eurogroup meeting on May 11 so as to unlock bailout funds benchmarked for Greece. The omnibus bill to be presented by Prime Minister Alexis Tsipras on Thursday also includes decisions concerning “luxury” islands with increased taxes on the table. Specifically cards for all transactions over 70 euros will be enforced as well as a special 4-5% accomodation tax at hotels that have more than three stars.
23 islands expected to be included on the luxury list will see overnight tax hikes once the omnibus bill will go into affect. The islands to be affected are those with over 3,100 inhabitants. Visitors will pay 1-5 euros per night to stay here as well as an additional 6% for clothes, footwear, jewelry in addition to 3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea.
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Hmmm, I recognise a certain style of writing I think. Greek from Kokkino Chorio perhaps ;)
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Thanks for the welcome information John
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I suppose this is the official advice: https://www.gov.uk/foreign-travel-advice/greece/money (https://www.gov.uk/foreign-travel-advice/greece/money)
Here's a related article: http://www.thetoc.gr/eng/food--travel/article/foreign-office-denies-changing-travel-advice-on-greece (http://www.thetoc.gr/eng/food--travel/article/foreign-office-denies-changing-travel-advice-on-greece)
I don't see how this advice relates to empty ATMs caused by crash or new drachmae being secretly printed.
Yes, the Ministry of Finance is planning to impose the measure with card payments to fight tax evasion. Let's hope this will prove fruitful for the government and convenient for the tourists.
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Something else of importance that the Greek Govt is rushing to be law within weeks (?) which among other things means any transaction greater tha 70 euros must be paid by debit or credit card. I will copy below the info I have which is posted on the reliable Sfakia forum. Apologies if yet again I seem to be scaremongering but if you are aware of these things (if they happen) then you can easily enjoy your stay, as always in Plakias. :-
The government is rushing to implement tax reforms by the next Eurogroup meeting on May 11 so as to unlock bailout funds benchmarked for Greece. The omnibus bill to be presented by Prime Minister Alexis Tsipras on Thursday also includes decisions concerning “luxury” islands with increased taxes on the table. Specifically cards for all transactions over 70 euros will be enforced as well as a special 4-5% accomodation tax at hotels that have more than three stars.
23 islands expected to be included on the luxury list will see overnight tax hikes once the omnibus bill will go into affect. The islands to be affected are those with over 3,100 inhabitants. Visitors will pay 1-5 euros per night to stay here as well as an additional 6% for clothes, footwear, jewelry in addition to 3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea.
Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.
3% taxes at bar restaurants and night clubs from April 1 to October 31, according to a report in Greek daily Ta Nea.
The 23 islands are:
Thasos
Limnos
Lesvos
Skiathos
Skopelos
Chios
Ikaria
Samos
Andros
Tinos
Mykonos
Paros
Syros
Naxos
Santorini
Patmos
Leros
Kalymnos
Symi
Kos
Rhodes
Karpathos
The goal of the tax increases are to increase VAT revenue in order to appease international creditors. Government sources state that the new omnibus bill will not have recessionary measures.
Proto Thema’s sources point to the following measures to be announced:
– Electronic card for all transactions over 70 euros on islands that have more than 3,100 residents
– Special accomodation tax during the tourist period (April-October) for a specific number of overnight stays in specific areas with specific lodgings (possibly hotels with over 3 stars)
Sources state that the draft bill includes an accomodation tax:
Α) residents at hotels with 3 stars will pay a 3% special tax per nightly stay
Β) residents at hotels with 4 stars will pay a 4% special tax per nightly stay
C) residents at hotels with 5 stars will pay a 5% special tax per nightly stay
Source chaniapost.eu/2015/…
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Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.
It does seem an odd list. Similarly missing are: Corfu, Kefalonia, Zakynthos (and others, but this is not test of our knowledge of Greek geography and population).
Arnaki
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I think it would be handy if those going to Plakias over the coming months report back to the rest of us when this proposed legislation comes into force, what impact it is having on hotel and restaurant prices, and if the requirement to pay by debit/credit card is being implemented.
Noopsy
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I have just heard from a friend who is currently on Kos (on the list) who reports that prices are unchanged from last year.
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Have just read on MSN News that Greece is in danger of running out of money in the next two weeks. We will all have to keep a close eye on the situation but I, for one, will be bringing cash with me.
Noopsy
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Which cash will be most welcome? Euros, british pounds or American dollars?
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I'm not an expert but I would assume the euro would be the most welcome as they would become unobtainable other than via tourists etc. When in Hungary recently - also a very poor country, they, like the UK have their own currency but the euro was universally very welcome indeed. As I say, NOT an expert opinion.
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Here is the list, strangely Crete is not listed but certainly has more than 3,100 inhabitants.
It does seem an odd list. Similarly missing are: Corfu, Kefalonia, Zakynthos (and others, but this is not test of our knowledge of Greek geography and population).
Arnaki
The answer I think is that Crete and the Ionian islands already have a higher rate of tax (?VAT) than the islands on the list.
With regard to the payment by credit/debit card for everything over €70 this is nothing more than a tax collectors charter. We all know that avoiding tax is a national pastime (and that is why cash is king) but what intrigues me is long it will take to set up once the law is enacted and, more importantly, whether prices will have to rise or will the traders be able to stand the increased costs to their business if they absorb the increases. I doubt they will be able to absorb the costs and will have to pass them on to us but I doubt it will happen for several months if at all this season.
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Might have a look for my old greek drachma's just in case !
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I think my early warning re taking plenty of currency might be wise though a last minute "solution" to the current crisis might now happen. There will be ongoing similar crisis's I suspect but effect on holidays should be minimal if any.
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Sadly, I think everyone for the foreseeable future will need to take currency with them.
Cash will be king.
Signs are that from Monday 29th June, the Greek banks will close and When they do reopen they will be forced to implement capital controls on the withdrawal of deposits/cash.
Wouldn't expect ATM's to be able to give cash especially on any of the islands.
Would need to take advice on whether credit cards are likely to be accepted.
My heart goes out to all of the Greek people, most who will really experience the brunt of this.
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Yes - i totally agree. It's quite simple. Take lots of currency, enjoy your hol. And give Max support to the wonderful locals in Plakias.
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Can anyone currently out there tell us if the VAT increase recently passed by the Greek parliament has impacted on restaurant prices and bus fares?
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Will find out.
Eating out this is more expensive this year compared to 2014, but we are having more meals with starters which accounts for most of the difference.
Sent from my Hudl 2 using Tapatalk
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I am not due in Plakias until October, but we went to Lesvos in June, and, admittedly it was before the tax hikes, but prices were exactly the same as 2013, 2 years ago, no rises on any meals in the restaurants, nor beer (thank goodness).
I have read a little on the tax rises just imposed, and it appears the islands may have been spared the rise until later in the year, I hope that includes Crete.
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new information:
http://news.gtp.gr/2015/07/21/effective-dates-vat-changes-tourism-greece/ (http://news.gtp.gr/2015/07/21/effective-dates-vat-changes-tourism-greece/)
Aegean islands
The special tax status of the Aegean islands will gradually phase out and the 30 percent discount on VAT rates (for all products and services) is expected to be completely abolished by January 2017.
According to the new law, the discount on all VAT rates comes to an end:
a) for the developed tourist islands with the highest per capita income, as of October 1, 2015,
b) for the less developed Aegean islands, as of June 1, 2016, and
c) for the remotest islands, as of December 31, 2016.
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I might be wrong but I don't think that Crete was included in the reduced VAT concessions which are about to be phased out. If I am correct then this increase of island VAT will not impact on Crete.
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Now I am getting confused - I have just looked at all the receipts we got from Plakias in October 2013, (sad isn't it), and all, including mini markets, tavernas and bars were charging 23% VAT. Where am I missing something about the VAT increases? Has Crete always been that high?
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Courtesy of Erno on the Sfakia forum
http://www.sfakia-crete-forum.com/read.php?3,2845 (http://www.sfakia-crete-forum.com/read.php?3,2845)
http://www.haniotika-nea.gr/anatimisis-logo-f-p-a-apo-simera-gia-sira-prionton-ke-ipiresion/ (http://www.haniotika-nea.gr/anatimisis-logo-f-p-a-apo-simera-gia-sira-prionton-ke-ipiresion/)
More details in the above websites but in short
Higher prices due to tax hike from today - 20 July, 2015
The standard VAT rate and the reduced rate are still 23% and 13%, respectively, while the super-reduced rate is 6%. The 30% reduction in the islands continues to apply and these rates stand at 16%, 9% and 4%. (Recall that the abolition of this scheme for tourist islands will take effect from 1 October 2015).
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So, has my mythos gone up?!!
Barny. :D
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Thanks Barny...good to know someone has their eye on the important things !
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New rate of VAT at 23% is now in force in restaurants and supermarkets.
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The last day before the VAT increased I went to the Argo bakery and bought three small apple pies. I asked how much they cost and the man replied: "0.60 euro each with the old VAT rate, 0.70 with the new". This is just an indicative example of how high the prices have gone.
However, there is something that puzzles me. Usually, prices at restaurants in Greece are rounded to .00 or to .50. With the new VAT it is highly unlikely that this will be the case so I guess there will be "small adjustment" so that new prices are rounded too. The question is: will they go up or down (and how much)?
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Where the VAT has increased from 13% to 23% this should result in an 8.8% price increase (i.e. 123 divided by 113). The cynic in me expects that most will round this up rather than down as happened in the UK on decimalisation (for those old enough to remember) and also when the € was introduced.
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For those of us travelling by coach, the fare from Heraklion to Rethymnon is Euros 8.30 (up from Euros 7.60), and from Rethymnon to Plakias it's Euros 4.90 (up from Euros 4.50). No doubt the airport bus in Heraklion is now Euros 1.20 (up from Euros 1.10).
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Can somebody in Plakias (or anywhere in Crete) advise about the current situation regarding cash ?
Are ATMs operational now ?
Can tourists pay daily life (hotels, restaurant, etc.) with their credit cards ?
Thank you for any update :-*
Jocelyne
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Hi, should have replied earlier, but this is the situation in Plakias:
1. The ATM's have been working all summer, yes there are times they run out of money so always make sure you have sufficient for a few days.
2. The supermarkets take cards, some of the tavernas do, the big hotels do but not sure about the smaller rent rooms, unlikely.
3. I have just found out that there is no where in Plakias exchanging Sterling so if you are bringing cash bring Euros or you will have to go to Spilli or Rethymno to change money.
4. One of the main VAT increases is on processed food which has now gone up to 23%. So basically all food apart from fresh fruit and veg, milk and bread and spaghetti are not included. I'm sure that with the increase in the tavernas (which happened a few years ago and was then reduced) will be absorbed by the businesses for this year.
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If you are unfortunate enough to need to visit the doctor you should note that he only accepts cash, no credit cards.