Greek tourism surge benefits and burdens Athens' economy

Greeks are enjoying the growing number of tourists while simultaneously worrying. They boasted record numbers of visitors while simultaneously imposing taxes on guests arriving by large cruise ships and blocking the creation of new Airbnb facilities in central districts of Athens.

"The tourism boom in Athens is, on the one hand, the development of the city, and on the other, a challenge," stated Athens Mayor Charis Dukas in his communication to PAP.

"Tourism in Athens has grown significantly in recent years. Last year, the number of foreign tourists exceeded 7 million, and this year that record is expected to be broken," the mayor's press office informed PAP.

According to data from Athens airport, in the first eight months of 2024, the airport handled 16 million passengers from abroad, which is almost 17 percent more than the previous year.

"In Greece, we often say that tourism is our heavy industry. The tourism boom has brought significant benefits for the economy, employment, and overall development of Athens," the mayor's office emphasized. It was noted that the growth of tourism has attracted domestic and foreign investments, including the construction of new hotels and restaurants, as well as revitalization projects.

"However, the increase in tourism has also led to heightened demand in areas such as accommodation, retail, and transportation. This requires better education and development of workforce skills," the mayor's office conveyed. Despite the benefits, it is necessary to manage tourism development to avoid its negative effects on residents' daily lives. The office assured that municipal services strive to meet the increased demand for cleanliness and public safety.

Dukas' office assessed that Athens has not yet experienced an "extremely high level of overtourism" observed in some European capitals. However, the city is already feeling the effects of this phenomenon, especially in the context of residential properties. The increase in short-term rental offers has made housing less accessible for Greeks, and rental prices have soared. "This fact, combined with infrastructure designed for about 700,000 residents, puts municipal services under pressure," it was acknowledged.

City authorities are working on "easing residents' frustrations." "We view the current situation as a challenge and approach it strategically. Our goal is to ensure that Athens remains sustainable and guarantees a high quality of life for residents and visitors," it was stated.

Some places in Athens are dealing with a large number of visitors. The city is conducting a study on its capacity to accommodate tourists. Extending the tourist season is being considered through organizing conferences and business meetings outside the peak season and expanding tourism to areas beyond the city's strict centre.

Improving urban infrastructure and safety is also necessary. "We propose that the revenues collected by the state in the form of tourism-related fees, such as those from hotels or restaurants, become municipal revenues that can be invested in services and infrastructure," it was explained.

The mayor assessed that high temperatures do not significantly affect tourism in the city. To make the heat bearable for residents and visitors, among other things, a 'heat line' was introduced in city hospitals, where people can seek help. One can also cool off at park fountains. Due to the risk of vegetation fires, the city has enhanced early warning systems, strengthened patrols in high-risk areas, and the situation in green areas is monitored using drones.

Simultaneously, Greece is imposing additional restrictions on entities operating in the tourism sector.

The Greek authorities will freeze the issuance of new licenses for Airbnb properties in three central districts of Athens for a year and impose a fee of CAD 28 on cruise ship passengers arriving on the popular tourist islands of Santorini and Mykonos.

The ProtoThema portal wrote on Tuesday that Airbnb's new restrictions will come into force on January 1, 2025. After a year, the market situation will be reassessed to determine whether short-term renting continues to affect the ability to rent housing for long periods.

Greek Prime Minister Kyriakos Mitsotakis stated that the restrictions could be extended to other areas if the housing market situation worsens.

Mitsotakis also announced that the CAD 28 tax imposed on cruise ship passengers arriving at Santorini and Mykonos during the peak tourist season will be partially allocated to local communities and invested in infrastructure.

Santorini, which has about 16,500 residents and receives over five million visitors annually, informed the Greek Ombudsman's report. It was emphasized that on Santorini "even tourists complain about the large number of tourists."

In 2023, Greece was visited by about 33 million tourists, which is about 5 million more than the previous year.

Source: PAP