ATHENS – The tourism sector in Greece is going from strength to strength, including the long-sought goal of attracting more high-income – i.e. higher spending – visitors, but concerns about the effects of overtourism have prompted the government to take action.

Even as the government is delighted that Greece is drawing substantial interest from leading international hotel brands and real estate groups and is expecting tourism revenue to hit 22 billion euro this year, on September 16 Greek Tourism Minister Olga Kefalogianni spoke about government plans to check over-tourism.

She detailed plans to better control the proliferation of short term rentals and referred to a new 20-euro levy on cruise ship visitors to the islands of Santorini and Mykonos.

Greece is now a top destination for hospitality investments, establishing itself in recent years as a prime destination for hospitality investments Consultancy.eu reports, noting that, “according to the latest ‘Greek Hospitality Industry Performance’ report from the research and consulting firm, 39 global hotel chains now operate in Greece, managing 205 hotels with a combined total of 29,204 rooms.”

The article further notes that “in the luxury sector, international chains have a significant presence, with 20 percent of 5-star hotels and 26 percent of 5-star rooms under their management. For 4-star hotels, international chains account for 5 percent of the hotels and 11 percent of the rooms. The data from GBR Consulting shows that Marriott dominates the Greek market with a 19 percent share. Sani/Ikos Group and Wyndham Hotels & Resorts follow, each holding 9 percent, while Hilton holds a 7 percent share.” Hyatt International has a 5 percent share.

GBR Consulting reached out with questions to 11 major brands within the Greek and international hospitality and real estate sectors and “in their responses, the industry leaders pointed at a number of factors driving Greece’s attractiveness as an investment hub, including favourable macro-economic developments, increasing tourist numbers, domestic tourism, and investors eyeing an attractive return on investment.”

Kefalogianni Addresses Steps to Curb Short Term Rentals

A ban on new licences for short-term rentals in three districts in central Athens will be in force for at least a year and taxes levied on holiday rentals will be raised.

“Like many other European tourism destinations, Greece is seeking to balance a profitable industry fuelled by online platforms such as Airbnb with the needs of locals facing a housing shortage,” Reuters reports. “Detailing that plan,” the article continues, “Greek Tourism Minister Olga Kefalogianni said on Monday [September 16] that the ban for new licences on short-term rentals in three districts in central Athens could be extended beyond the initial one year.

“We have found that they (short-term rentals) operate somehow as hotels, while there is also a lot of pressure on society,” Kefalogianni told reporters.

“I was looking for a house for eight-nine months and ended up in the one I’m in now,” said Alma Lazi, 34, a private sector worker who lives in the central Athens borough of Pangrati. She said that, “even during that period when I was looking and expanding the range of areas that I was considering, I didn’t find anything I could afford to maintain.”

Reuters also reported that Finance Minister Kostis Hatzidakis conveyed that “that a daily tax on short-term rentals which helps the country deal with the impact of natural disasters related to climate change will be increased to 8 euros from 1.5 euros for the April-to-October period, The tax will rise to 2 euros from 0.5 euros for the winter months.”

Reuters added that “a 20-euro levy on cruise ship visitors to the islands of Santorini and Mykonos during the peak summer season, another measure announced earlier this month to battle over-tourism, will take effect next year, Kefalogianni said.

(Material from Consultancy.eu and Reuters was used in this report)