Greece could be following in Spain’s footsteps and cracking down further on overtourism after a study revealed that short-term lets are outnumbering hotel rooms.
A ban on converted storage areas, former industrial unis and basements being used as holiday rentals are among the measures being debated by lawmakers this week after record-breaking visitor numbers last year.
“Rental spaces must serve as primary residential use areas, with natural light, ventilation and air conditioning,” the centre-right government’s Tourism Minister Olga Kefalogianni told the state-run television service.
New legislation could also provide tax incentives for property owners to veer away from holiday lets in a bid to tackle the growing issue of unaffordable housing which saw Greece ranked as one of the EU’s worst seven countries for homelessness last year.
However, left-wing politicians have slammed the proposals, saying they don’t go far enough to tackle the rampant problem, with the number of rentals in capital city Athens surging 50% beyond the number of available hotel rooms in 2023.
“You are allowing the concentration of short-term rentals in areas popular with tourists,” opposition MP Kalliopo Veta accused the administration.
“The expansion of tourism is going unchecked. This is drastically transforming neighbourhoods and displacing permanent residents,” she added.
Holiday rentals made up 13% of Greece’s GDP in 2023 and a study from the national hoteliers association has shed new light on how the growing market is impacting more traditional accommodation – with the average number of hotel rooms across the country roughly equal to the number of Airbnb-style spaces in the same period.
Ms Kefalogianni said the proposals were aimed towards ensuring the “long-term, sustainable and high-quality development of Greek tourism” and will also involve the introduction of new “safety and operational standards” for short-term lets.
It’s not the first time the government has taken action against a tourism boom, with a one-year ban on short-term rentals also recently coming into force in popular regions of Athens including Kolonai and Exarchia, with a maximum penalty of £16,877 (€20,000).
The debate also begins in Greek parliament just days after the Spanish Prime Minister announced plans to attach a 100% council tax premium to properties by non-EU citizens in the country in an effort to curb second home ownership following protests against overtourism and rising house prices.
Pedro Sanchez said the move was a response to the purchase of 27,000 homes in Spain by non-residents for “money earning” purposes.
As two of the most popular holiday destinations for Brits, Spain and Greece have both seen huge booms in traveller numbers following the Covid pandemic, with around 35 million visitors estimated to have descended on Greek shores last year, raking in a record £18.5 billion (€22 billion).
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