Greece’s tourism boom continues despite rising rental prices, soaring taxes, and new regulations, as the government fights to manage the overwhelming influx of visitors.

Greece’s efforts to address the challenges posed by its booming tourism sector, including imposing taxes and laws targeting holiday homes, seem to have had little effect. In 2024, the number of residential properties increased by nearly 10%, despite hefty fines and additional fees introduced by the government.

According to AirDNA data, 14 million overnight stays were made by foreign visitors using short-term rental services like Airbnb in 2024, marking a rise of 2 million from 2023, prior to Greece implementing policies to combat overtourism issues such as rising rent prices and deteriorating public services.

In response to the growing number of visitors, Greece’s Prime Minister Kyriakos Mitsotakis introduced new regulations requiring owners of rental properties to register with the government or face fines of up to €20,000. While there were concerns that such measures would drive popular properties off Airbnb, the number of holiday rentals is now estimated to be around 1 million.

Despite the challenges faced by locals in high-demand areas like Athens and the Greek islands, landlords are earning more from tourists than ever before. Tax revenue from short-term rentals rose to €870 million in 2024, up from €750 million in the previous year.

As politicians continue to pursue policies aimed at curbing the conversion of local properties for tourism use, a one-year ban on new short-term rentals is now in place in Athens’ most sought-after areas, including Kolonaki, Koukaki, and Exarchia. This ban followed reports that holiday rentals now outnumber hotels in Athens by two-to-one, and are equally split with hotels nationwide.

New legislation is also in the works to prevent the loss of former business and industrial properties, such as warehouses and basements, to foreign tourists.

To mitigate the impact of the growing tourism influx, the Greek government is introducing higher visitor fees. Travelers will now face a €2 daily tax during the off-season, and €8 between April and October, a fourfold increase from previous rates.

Cruise passengers, in particular, will bear the brunt of these changes, with a €20 fee introduced in some of Greece’s most famous destinations, including the iconic Santorini. Authorities hope to generate €400 million from this initiative, more than double the amount raised in 2024.

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