ATHENS – High ferry boat fares that are keeping many Greeks from visiting islands – and some with homes there – are the fault of two shipping groups dominating sea transport as well as government unwillingness to regulate them, a business group said.

The 2024 Greek Ferry Report released by XRTC Business Consultants, based in the port of Piraeus, said fares are among the highest in Europe and exceed average rates in Northern European routes by as much as 60 percent, said To Vima.

https://www.tovima.com/travel/report-skyrocketing-ferry-fares-in-greece-need-regulation/

The report said the majority of coastal shipping services and operations in Greece are mainly controlled by two businesses, one being Attica Group, which has 27 percent of the ships, and 51 percent of vehicle capacity.

The other, Attica, Minoan, and Seajets, together control 49 percent of ships, 63 percent of passenger capacity and 71 percent of vehicle capacity, allowing them to charge as much as the market can bear with few options for riders.

Using data from ferryroute.com the report noted that, for example, an economy class ticket from Greece’s mainland to Chania on the island of Crete has risen from 27 euros ($29.48) in 2023 to 41 euros ($44.77) in 2024, a jump of 51.85 percent

And taking a car adds to the cost that has become prohibitive for families with children and that adds another 79 euros ($86.26) – a jump of 60 percent from 49 euros ($53.51) in 2023, for one way, putting round trip tickets out of sight for many.

XRTC analysts compared the cost for a family of four including vehicle and cabin from Oslo to Copenhagen (316 nautical miles), which comes to 696 euros ($760) but is 1105.50 euros ($1207.15) from Piraeus to Rhodes, a shorter distance.

The Association of Passenger Shipping Companies (SEEN) said other factors for the higher prices included wage costs, the rising costs of spare parts and marine fuels, as well as increasing bank lending rates for ferry companies.

Earlier, Shipping Minister Christos Stylainidis called on the Hellenic Competition Commission to step in and address reports of abusive market behavior with no reports whether it has at the height of the summer tourism season.

Opposition PASOK-Movement for Change leader Nikos Androulakis said that, “What is happening with the ferry tickets is really shameful. Half of the Greeks will not go on holidays this year and the government is hiding behind “the free market.”

BUOY, IT’S EXPENSIVE

He also referred to the ministry’s answer to a PASOK question in Parliamentwhich said that “until 15 September 2024 maximum permitted prices apply only to routes on subsidized lines.”

The ministry said on the rest of the routes that PASOK deputies were informed that “No records are kept of the percentage change in fares, as the shipowner is free to apply the pricing policy he wishes.”

After complaints from the major opposition SYRIZA that high ferry prices are keeping Greeks from vacationing on islands Deputy Migration Minister Sofia Voultepsi said they should holiday on the mainland instead.

In an interview with OPEN TV she said the high prices are a problem – tourists are flooding islands and driving up demand – but that, “People can find a way out. I don’t mean that there is no solution, but they can go to their village or to the mainland. All countries have poor people.”

That led to another riposte from SYRIZA that said New Democracy government lawmakers are now officially announcing that Greeks don’t have the right to visit the islands; that they have become a ‘forbidden zone’ for them.”

Earlier, SYRIZA said that, “The very high prices of ferry tickets amount to another financial ‘noose’ around the necks of holidaymakers, professionals and island residents,” with the government especially wanting wealthy tourists.

The Leftists said that Prime Minister Kyriakos Mitsotakis’ government “is happily counting tax revenues from VAT (Value Added Tax) and pursuing a hollow communications policy,” and ignoring the plight of many Greeks.

“The truth is that the government is stubbornly refusing to reduce the high rate of VAT on tickets, which is 24 percent, in order to maintain its excessive tax revenue, while allowing the companies in the industry to earn whatever profits they want, regardless of their real costs,” the party added.

“Observing the radical increase in ferry tickets, SYRIZA had tabled a parliamentary question in May asking the responsible ministers to intervene immediately in order to keep ticket prices in check and to ensure that the greater proportion of medium income-earners will be able to visit the Greek islands this summer,” the party said.

“Will the government continue comfortably lounging on its political ‘sunbed’ or will it take measures to reduce ferry tickets and crack down on profiteering?” the Conservatives’ rival asked without getting an answer.