The Hellenic nation 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. 

One of the key measures is a €20 fee ($33) for each cruise passenger disembarking in Santorini and Mykonos during the peak summer season. This fee is intended to mitigate the environmental and infrastructural impact caused by the high volume of cruise visitors.

Asked about overtourism at the Thessaloniki International Fair, Prime Minister Kyriakos Mitsotakis pointed out that in terms of tourism, the country has “a problem in certain destinations some weeks or some months of the year”, according to AFP.

He explained it was time to “put the brakes” on islands where the situation has reached “a point where the infrastructure limits are actually being tested.”

Mitsotakis clarified that excessive tourism was only a problem in a handful of destinations.” Greece does not have a structural overtourism problem. Some of its destinations have a significant issue during certain weeks or months of the year, which we need to deal with,” he said. 

The country relies heavily on tourism with over 33 million travellers visiting Greece in 2023. One in three euros that Greece earns each year comes from tourist dollars, as the industry contributes to roughly one third of its GDP.

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But with up to five cruises pulling into popular island destinations, the country’s most idyllic spots, quaint villages and pristine coastlines are being ruined by mass tourism.

“Cruise shipping has burdened Santorini and Mykonos and this is why we are proceeding with interventions,” Mitsotakis explained. He added that the government intends to limit the number of cruise ships docking at specific destinations at the same time, while also introducing regulations to protect the environment and address water shortages on islands.

To combat cost-living pressures such as rent hikes and increase the supply of housing, Mitsotakis also plans to increase a tax on short-term rentals and ban new licences for these rentals across three central districts in Athens. Other measures include tax benefits for property owners who convert short-term rentals into long-term leases such as being exempt from rent tax for three years. 

After a year of devastating natural disasters in 2023, Greece also introduced the Climate Resilience Tax at the beginning of 2024. The new mandatory tax is replacing the former accommodation tax and applies to all bookings with check-in date from January 1, 2024.

The new levy is over twice as high as the previous bed tax with a cap of €10 (A$17) instead of the previous €4 (A$6.50). Guests staying at 5-star hotels during the winter months (November to February) are required to pay €4 ($6.50) per day, which rises to €10 ($17) per day from March through October.

This story originally appeared on escape.com.au. It has been republished here with permission. 

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