Greece introduces new measures to combat overtourism, including a €20 cruise ship levy on Santorini and Mykonos, increased accommodation taxes, and expanded Golden Visa programs to boost the economy.
Greece is taking steps to tackle the growing issue of overtourism as visitor numbers hit record highs post-pandemic. Prime Minister Kyriakos Mitsotakis announced new measures to manage tourist influx and support the economy during his speech at the Thessaloniki International Fair.
€20 Levy on Cruise Ship Visitors
Greece plans to impose a €20 fee on cruise ship visitors to the popular islands of Santorini and Mykonos during the peak summer season.
These islands, known for their picturesque landscapes and quaint villages, attract large numbers of tourists each year. However, the surge in visitors has put pressure on local infrastructure and the environment.
• The €20 levy aims to control the number of cruise passengers.
• The goal is to protect these islands from being overwhelmed by mass tourism.
• Additional fees will also apply to all passengers arriving at Greek ports.
Increased Taxes on Accommodation
To further manage the impact of high tourist volumes, the government will increase the lodging tax during the busy April-to-October period. This tax includes a component related to the climate crisis and aims to generate additional revenue for local communities.
• Funds will support sustainable practices and infrastructure improvements.
• The aim is to balance tourism growth with environmental and local community needs.
Expanding the Golden Visa Program
Greece is expanding its “Golden Visa” program to attract more foreign investment. Previously, the visa required foreigners to purchase the property. The program will now include:
• Investors were willing to put at least €250,000 ($277,000) into local startups.
• This change aims to diversify investment and boost economic growth beyond real estate.
Addressing Short-Term Rental Challenges
The rise of short-term rentals has significantly impacted Greece’s housing market, contributing to a housing crisis. To address this issue, the government will:
• Ban new short-term leases for at least one year in three main areas of Athens.
• Property owners switching from short-term to long-term leases will be exempt from rental tax for three years.
• This policy also encourages owners to rent out their homes instead of leaving them vacant.
Overtourism Concerns and Future Plans
Mitsotakis expressed ongoing concerns about overtourism, especially on Greece’s most popular islands. The government plans to limit cruise ship visits starting in 2025 to manage visitor numbers better.
• Overtourism has strained local infrastructure and natural resources.
• The aim is to preserve Greece’s cultural heritage and improve the quality of life for residents.
Tourism’s Role in Greece’s Economy
Tourism is a key driver of Greece’s economy, contributing about 20% to the GDP. In 2023, Greece welcomed a record 36.1 million visitors. In the first half of 2024, arrivals increased by 16% to 11.6 million, according to the Bank of Greece.
• While tourism is vital, the government recognizes the need to address its negative impacts.
• Popular destinations like Santorini, with 20,000 permanent residents, face risks from mass tourism.
Support for Homeowners
The Greek government will launch a €2 billion program to support homeowners amid rising housing prices. The program aims to:
• Reduce interest-rate costs for mortgage loans.
• Make homeownership more accessible for Greeks facing economic challenges.
Conclusion
Greece’s new measures aim to tackle overtourism and support sustainable economic growth. By regulating cruise arrivals, increasing accommodation taxes, expanding investment opportunities, and addressing housing issues, Greece is working towards a more balanced tourism sector.
These steps are crucial to ensuring that tourism thrives without compromising the quality of life for residents or the natural beauty of Greece’s iconic destinations.
Source: https://travelobiz.com/greece-introduces-new-taxes-fees-for-tourists-cruise-passengers-in-2024/
