Greece, a nation renowned for its ancient wonders and sun-drenched islands, faces a growing challenge: overtourism. The influx of visitors, particularly in the post-pandemic era, has placed strain on local communities and resources, prompting Prime Minister Kyriakos Mitsotakis to announce decisive measures to manage visitor numbers and mitigate the negative impacts of tourism.
One of the key initiatives is the introduction of fees for cruise passengers. This measure aims to alleviate the pressure on popular destinations like Santorini and Mykonos, which are often overwhelmed during peak seasons. The government plans to impose higher charges on cruise ships docking at these islands, effectively discouraging excessive tourism in these areas.
Furthermore, the government is introducing a one-year ban on new short-term rental properties in Athens, aiming to address the housing crisis exacerbated by the rise of platforms like Airbnb. This move is intended to protect long-term housing availability for local residents and ensure that the benefits of tourism are shared equitably.
Recognizing the importance of affordable housing, the government is also offering tax incentives to property owners who switch from short-term to long-term rentals. This initiative aims to increase the supply of affordable housing options and alleviate the pressure on residents facing rising rental costs.
Beyond tourism and housing, the Greek government is tackling the rising cost of living by implementing a range of measures, including tax reliefs, wage increases, and adjustments to social benefits. Notably, a €2 billion mortgage relief program has been introduced to reduce interest rates on housing loans, providing financial relief to homeowners struggling with high mortgage payments.
As part of its commitment to fiscal responsibility, the Greek government has pledged to maintain a primary budget surplus of 2.1% of GDP for both 2024 and 2025. This target reflects the country’s ongoing efforts to maintain fiscal discipline and solidify its return to investment-grade status.
Prime Minister Mitsotakis’s comprehensive approach aims to balance the needs of the tourism industry with the well-being of Greek citizens. By addressing overtourism, the housing crisis, and the rising cost of living, the government seeks to ensure sustainable growth and create a more equitable and prosperous future for all Greeks.
