A holiday in Greece is about to get pricier, with even steeper costs if you’re dreaming of those iconic Santorini sunsets or Mykonos beach parties. Prime Minister Kyriakos Mitsotakis recently announced a series of measures to tackle the downsides of the country’s booming tourism industry, and your wallet might feel the pinch.
Here’s what’s changing, and why:
- Cruise Control: Love island-hopping on a cruise? Get ready to pay extra. Greece is introducing fees for all cruise passengers, with a tiered system meaning higher charges for those disembarking in popular destinations like Santorini and Mykonos. This measure aims to alleviate the strain that massive cruise ship crowds can put on these smaller islands. To put it in perspective, in 2023 alone, Greece received a record 36.1 million visitors.
- Island Premium: The “Santorini surcharge” doesn’t end there. A lodging tax applied from April to October (peak season) will also see a hike, specifically in these tourist hotspots. The revenue generated from this tax will be reinvested in the local communities, helping them to cope with the increased infrastructure and resource demands of tourism. This is particularly important considering that in the first half of 2024, arrivals surged by 16% to reach 11.6 million, highlighting the intense concentration of tourism in certain areas.
- Golden Visa Expansion: Dreaming of a Greek Golden Visa? The program is expanding beyond property investment to include startups. Now, if you have €250,000 to invest in a local business, you can potentially gain residency. This shift reflects the government’s aim to attract a wider range of investors and support different sectors of the economy.
- Short-Term Rental Squeeze: Finding an affordable Airbnb in Athens might get trickier. The government is halting new short-term rental permits in central areas for at least a year. This move aims to address the housing shortage exacerbated by the rise of platforms like Airbnb, which some argue have driven up rental costs for locals. This is a direct response to the staggering statistic that short-term rentals shot up by an average of 28% each year from 2019 to 2023, while the availability of such rentals doubled in the same period.
What’s Behind the Changes:
These measures come as Greece grapples with the double-edged sword of its tourism success. 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.
Bottom Line:
So, while a Greek holiday is still on the cards, be prepared to factor in these additional costs, especially if your heart is set on the country’s most coveted islands. Researching alternative destinations, considering traveling during shoulder season (spring or fall), or exploring different types of accommodation (like locally-owned guesthouses) could help you manage your budget.