Greece, a beloved destination for travelers worldwide, has joined the bandwagon of European countries to address the challenges of overtourism. The government has announced a series of measures aimed at managing the influx of visitors, particularly in popular destinations like Santorini and Mykonos.
Key Changes:
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Increased Disembarkation Fees: Cruise ship passengers can expect to pay higher fees upon arrival, especially in Santorini and Mykonos. -
Accommodation Tax: A new accommodation tax will be implemented from April to October, generating revenue for local communities. -
Ban on New Short-Term Lets: Athens will temporarily halt the issuance of new short-term rental licenses to alleviate the housing crisis. -
Expanded Golden Visa Program: Greece is expanding its Golden Visa program to attract foreign investment through startups.
Greece received a record 36.1 million visitors in 2023, while arrivals rose 16% to 11.6 million in the first half of 2024, according to the latest data from the Bank of Greece. Last year some 800 cruise ships brought some 1.3 million passengers to Santorini and Mykonos, an island of just 15,500 residents, according to the Hellenic Ports Association.
In an AFP interview earlier this summer, Tourism Minister Olga Kefalogianni also said there was a need to set quotas, with local officials already setting an overall limit of 8,000 cruise passengers per day from next year for Santorini.
Greek Prime Minister Kyriakos Mitsotakis has been ‘very concerned’ about the influx of cruise passengers during certain months of the year and on Saturday he announced measures aimed at addressing the negative impact of overtourism.
“Holiday rentals increased an annual average of 28% from 2019 to 2023, while available short-term rentals doubled in the same period. Meanwhile, hotel accommodation rose just 3.5% in that period, according to data published in a Grant Thornton report for the country’s Chamber of Hotels released this week,” said Bloomberg in a report.
Under new plans, Greece will also expand its “Golden visa” program for investors willing to put at least £211,000 (€250,000) into local start-ups. Foreigners previously had to purchase property to qualify for the visa.
In an interview with Bloomberg in June, Mitsotakis announced plans to restrict cruise ships visiting the country’s most popular islands from 2025.
These measures may affect travel costs for visitors planning trips to Greece. Cruise ship passengers will face higher fees, and accommodation costs may increase due to the new tax. Additionally, the ban on new short-term rentals could limit availability and potentially drive up prices.
While tourism makes up about 20% of the Greek economy, the influx of travelers in recent years has put a strain on resources and infrastructure, particularly in popular destinations. The government is walking a tightrope, trying to balance economic benefits with sustainable tourism practices.
Greece’s efforts to manage tourism are in line with broader global trends. Other European countries, such as Spain, Italy, and Croatia, have also implemented measures to manage tourist flows and protect their popular destinations. These measures often include restrictions on new accommodations, visitor taxes, and efforts to promote sustainable tourism practices.
First Published: Sep 09 2024 | 10:37 AM IST
