Confronting Overtourism: Greece’s New Airbnb Legislation

Rising Concerns over Overtourism

New Airbnb legislation in Greece is currently under discussion by lawmakers to address urgent concerns about overtourism. Hotel owners across the country have expressed frustration, claiming that holiday rentals now outnumber hotel rooms in various neighborhoods, further intensifying the need for regulation.

Proposed Changes to Rental Regulations

The proposed legislation will introduce a series of specific measures regarding Airbnb and similar platforms. This new Airbnb legislation in Greece aims to eliminate certain types of properties from rental services, including renovated warehouses, underground spaces, and former industrial sites. Tourism Minister Olga Kefalogianni stated, “Basements will no longer be allowed for use. Rental spaces must serve as primary residential use areas, with natural light, ventilation, and air conditioning.”

She emphasized, “We are introducing minimum operational and safety standards because this is a tourism product. Our goal is the long-term, sustainable, and high-quality development of Greek tourism, not just breaking records every year.”

Temporary Ban on New Licenses

Additionally, this draft legislation coincides with a one-year moratorium on new short-term rental licenses. The ban targets popular tourist areas such as Kolonaki, Koukaki, and Exarchia. Violations may result in fines up to €20,000 .

Balancing Tourism and Housing Affordability

The New Airbnb legislation in Greece comes at a time when holiday rentals significantly boost the country’s tourism. This sector accounts for approximately 13% of national GDP in 2023. However, these rentals have led to higher living costs, making housing less affordable amid the cost-of-living crisis. Officials are trying to balance tourism benefits with the need for viable housing. They are offering tax incentives to property owners who opt out of the short-term rental market.

Government estimates suggest tourism revenue could reach a record €22 billion in 2024, driven by an expected 35 million tourist arrivals .

Data on Holiday Rentals vs. Hotels

A recent study from a national hoteliers association revealed that the number of rooms in holiday rentals matched that of hotels nationwide in 2023. However, in central Athens, the availability of holiday rental rooms was nearly double that of hotel rooms.

Opposition Concerns in Parliament

During the parliamentary debate, opposition lawmakers expressed strong concerns about the government’s response to overtourism. They criticized the ruling center-right coalition for neglecting the social impacts of short-term rentals. Many argued that these rentals in popular tourist areas are drastically transforming neighborhoods and pushing out long-term residents. They highlighted that the New Airbnb legislation in Greece does not adequately address the unchecked expansion of tourism, urging for more comprehensive measures to protect local communities.

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The draft legislation, which also introduces new safety and operational requirements for holiday rentals, is set for a vote later this month. As discussions progress, this new Airbnb legislation in Greece may reshape short-term rentals and tourism management in the country.

This article has been adapted from the original article titled ‘Airbnb is “drastically transforming neighborhoods” in Athens: Here’s how Greece wants to clamp down,’ written by Derek Gatopoulos with AP for Euronews.

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