The Greek government has said that new licenses for short-term rental stays in three central areas of Athens will be prohibited starting January 1, 2025. This decision seeks to mitigate the effects of the housing shortage as a result of the increased use of platforms such as Airbnb and shall be effective for one year at least.
Greece is experiencing an enormous housing problem as a result of its low wages, high rates of inflation and scarcity of real estate. The problem has been made more dire by some homeowners transforming their homes into short-term rental properties, which has left a relatively small number of properties available for long-term renting by permanent residents.
Tourism Minister Olga Kefalogianni pointed out that while the tourism industry is a profitable business, attention should also be paid to the issue of housing in the country.
“We have found that they (short-term rentals) operate somehow as hotels, while there is also a lot of pressure on society,” Kefalogianni told Reuters.
According to Kefalogianni, the tourism revenue of Greece will reach 22 billion euros in 2024, the second consecutive year of record highs.
In fact, last year the number totalled 20.6 billion euros. Kefalogianni was positive about the position of the country as one of the premier tourist destinations in the world which is apparent from the rising figure of tourism earnings.
Finance Minister Kostis Hatzidakis told Reuters that a daily tax on short-term rentals, which aids in assisting the nation cope with the effects of natural disasters linked to climate change, will rise to 8 euros from 1.5 euros for the April through October period. For the winter, the tax will increase from 0.5 euros to 2 euros.
These new measures were recently introduced by Prime Minister Kyriakos Mitsotakis and are said to illustrate the Greek government’s determination to develop a long-term sustainable tourism model on one hand and to tackle the problem of over-tourism and the housing deficit on the other.
Kefalogianni further informed the publication that another step promised earlier this month to combat over-tourism will be implemented next year: a 20-euro fee on cruise ship passengers visiting the islands of Santorini and Mykonos throughout the busiest summer season.
When the proposal was initially made public, Airbnb expressed opposition to the new short-term rental regulations but also said it was willing to work with the Greek government to arrive at a resolution.
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