Greece is joining its European neighbours in considering new measures to curb overtourism. The government has stated its concerns about an influx of cruise passengers during certain months of the year and will soon begin charging fees as well as a tax related to the climate crisis on accommodation.
The Mediterranean country received a record 32.7 million people in 2023, while arrivals rose 16 per cent to 11.6 million in the first half of 2024, according to the latest data from the Bank of Greece. The tourism sector contributes about 20 per cent to the economy, making it vital to the health of the nation. Last year, some 800 cruise ships brought more than 1.3 million passengers to Santorini, an island of just 15,500 residents, according to the Hellenic Ports Association.
Now, all passengers arriving at Greek ports will pay a EUR 20 (INR 1,853) fee, and the charge will be greater in the popular tourist islands of Santorini and Mykonos. A lodging tax for the April-to-October period will also be increased, with revenue benefiting local communities. Furthermore, there will be limits to daily cruise ship arrivals.
The country will expand its so-called “Golden Visa” program to investors who are willing to put at least EUR 250,000 (INR 23 million) into local startups. Foreigners were previously required to buy property to acquire the visa.
Lately, short-term rentals have been blamed for fueling the country’s housing crisis, which along with high consumer prices has been at the centre of political debate. The government will now ban any new short-term leasing for at least one year in three main parts of Athens. Property owners who change leases from short-term to long-term won’t have to pay rental tax for three years, as will owners who decide to rent their homes instead of keeping them off the market.
Holiday rentals increased at an annual average of 28 per cent from 2019 to 2023, while available short-term rentals doubled in the same period. Meanwhile, hotel accommodation rose just 3.5 per cent in that period, according to data published in a Grant Thornton report for the country’s Chamber of Hotels.
More control measures are to be announced in the coming weeks related to construction on the most overdeveloped islands—particularly targeting vacation homes.
(With inputs from multiple news agencies)