Greece plans to impose a 20-euro levy on cruise ship visitors to the islands of Santorini and Mykonos during the peak summer season, in a bid to avert overtourism, Prime Minister Kyriakos Mitsotakis said on Sep 8 as reported by Reuters.
Greece relies heavily on tourism, the main driver of the country’s economy which is still recovering from a decade-long crisis that wiped out a fourth of its output.
But some of its most popular destinations, including Santorini, an idyllic island of quaint villages and pristine beaches with 20,000 permanent residents, risk being ruined by mass tourism.
Mitsotakis clarified that excessive tourism was only a problem in a few 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.
“Cruise shipping has burdened Santorini and Mykonos and this is why we are proceeding with interventions,” he added, announcing the levy.
Santorini to Restrict Daily Cruise Passengers to 8,000
Schengen News reported that starting in 2025, the government plans to limit cruise ship visits to better manage visitor numbers. In 2023, Santorini and Mykonos saw a notable rise in cruise ship arrivals, with 800 ships bringing 1.3 million passengers to Santorini alone. Mykonos experienced a 23 per cent increase in cruise ship visits from the previous year.
With a population of about 16,000 Santorini, it has faced challenges due to the high tourist influx, which has led to long queues and crowded streets. Local officials have set a daily limit of 8,000 cruise passengers starting next year.
In Santorini, protesters have called for curbs on tourism, as in other popular holiday destinations in Europe, including Venice and Barcelona.
Part of the revenues from the cruise shipping tax will be returned to local communities to be invested in infrastructure, Mitsotakis said.
The government also plans to regulate the number of cruise ships that arrive simultaneously at certain destinations, while rules to protect the environment and tackle water shortages, must also be imposed on islands.
Tax on short term rentals
Greece also wants to increase a tax on short-term rentals and ban new licenses for such rentals in central Athens to increase the housing stock for permanent residents, Mitsotakis said.
The government plans to raise the lodging tax during the peak April-to-October period to manage high tourist volumes further. This tax will include a component focused on combating climate change and aims to generate additional revenue for local communities, supporting sustainable practices and infrastructure improvements.
In response to the impact of short-term rentals on Greece’s housing market, the government plans to:
- Ban new short-term leases for at least one year in three key areas of Athens
- Provide a three-year rental tax exemption for property owners transitioning from short-term to long-term lease
- Encourage property owners to rent out their homes rather than leaving them vacant
Greek tourism revenues stood at about 20 billion euros in 2023 on the back of nearly 31 million tourist arrivals. These new measures aim to balance tourism growth with environmental and local community needs.
