Greece plans fees on cruises and crackdown on short-term rentals

10.09.2024 - 00:46 / skift.com / Kyriakos Mitsotakis / Dawit Habtemariam

Greece plans to tax cruise passengers that step foot on the islands Santorini and Mykonos and ban new short-term rentals in three of Athens’ central districts, the prime minister announced on Saturday.

“A cruise fee is [going to be] imposed per passenger who disembarks in a port in Santorini and Mykonos,” said Greece Prime Minister Kyriakos Mitsotakis in a speech Saturday outlining his policies for 2025.

The prime minister said he was concerned about “the image on some of our islands some months of the year due to cruise ships.”

The cruise fee will be 20 euros (around $22) during the peak summer season and the funds will be used to mitigate the impact of the increased traffic. “Cruise shipping has burdened Santorini and Mykonos and this is why we are proceeding with interventions,” said Mitsotakis, at a press conference on Monday, reported Reuters.

Santorini Mayor Nikos Zorzos has also proposed charging tourists an access fee, along with other measures to better manage tourism.

Mitsotakis also said he plans to increase Greece’s climate crisis resilience tax. Between March and September, hotels charge their guests the tax. Misotakis said the funds raised will go toward supporting communities.

Greece has been one of the most popular destinations in Europe this year. From January to June, inbound travel to Greece reached 11.6 million, up 15.5% from last year, according to the Bank of Greece.

At the press conference, Mitsotakis said Greece doesn’t have a “structural overtourism” problem except for a few destinations. “Some of its destinations have a significant issue during certain weeks or months of the year, which we need to deal with,” he said.

To ease rent inflation and increase the supply of housing, Mitsotakis announced new incentives, disincentives and restrictions for short-term rental owners.

Property owners who convert short-term rentals or previously unoccupied apartments into long-term housing will be exempt from rent taxes for three years. New taxes will also be imposed on short-term rental contracts through platforms like Airbnb.

New short-term rental leases will be banned in three central districts of Athens for at least one year. “The character of our neighborhoods must not be diluted nor should the right of profit of one prevent the housing of another,” said Mitsotakis.

At a follow-up press conference, the prime minister said the government will expand the ban to more districts in Athens if the number of short-term rentals exceed “a certain limit.”