At the 2nd Regional Hotel Conference organized by the Panhellenic Federation of Hoteliers (POX) in Heraklion, Crete, short-term rentals industry was one of the main topics of discussion.
From Yiannis Hatzis, the president of POX, to presidents of the local Hotel Associations and up to Agapi Sbokou, Hotelier and Vice-President of SETE, short-term rentals were under fire. Sentiment centred around Airbnbs being to blame for rising rental prices, for the lack of affordable housing for permanent residents in cities, for “hyper-tourism”, as well as for the burden of deficient infrastructure in popular destinations.
The issue of housing is an existing and multifaceted problem, short term rentals can of course contribute to the issue but they are certainly not the sole cause. Tight restrictions and all-out bans on short term rentals will not solve the issues surrounding housing and infrastructure.
When it comes to allegations of “hyper-tourism”, both the President of POX and Emmanuel Giannoulis, President of the Hoteliers of Chania agreed that this isn´t a phenomenon experienced in Greece. It has little to do with pre-existing and unresolved issues surrounding infrastructure, instead, they argued that the spotlight has been put on hyper-tourism as an easy way to impose additional charges on hotels.
What exactly does short-term rental “regulation” mean?
Ironically, the open and ongoing discussions surrounding regulation in the short-term rental industry has somehow created an environment of uncertainty and doubt, an impression to outsiders that the short-term rental industry is unregulated, or worse, laced with illegalities.
This couldn´t be further from the truth. The STR industry is highly regulated and controlled. Additional VAT, temporary resident fees, climate resistance fees as well as an extra fee per accommodation on all registered legal entities are amongst a few of the most recent charges imposed. Even though it has been recognised by the Governor of AADE that the short-term rental industry is in full compliance with regulatory provisions and does not evade taxes, this was not referenced at any point.
Recently an increased number of publications have talked about the upcoming “new regulations” for short-term rentals. Even the prime minister, in his interview with the Star television station, announced: “We are considering even more restrictions on airbnb, if this is necessary.”
Interestingly, earlier in the interview he admits that “rents have increased because the real estate market is doing well.” Which goes back to the fact that whilst STRs can contribute to rising rental costs, they are not the root cause.
The last bill concerning STR was passed almost six months ago back in December 2023 and since then hoteliers have been vocalising how unhappy they are. They described the imposed regulations as being “too little, too late” and continue to apply pressure on the Greek government to enforce tighter regulations. At the recent POX Conference, Alexandros Vassilikos, President of the Hellenic Chamber of Hotels, presented research on the social effects of short-term renting going as far as to claim that Airbnb is the antidote to the classic all-inclusive tourist model.
Alongside this, Hatzis acknowledged the allure of Greece as a tourism “product” based on “Sun and Sea” and defended the importance of mass tourism due to its overall impact on the Greek economy.
He claimed that whilst most Greek citizens won´t have positive connotations when they hear of Greece as a “Sun and Sea” product of mass tourism, it’s important that decisions are guided by facts and not speculative theories. Looking at the facts and figures carried out in an opinion survey, we see that 50% of Germans and 40% of British travellers do actually choose Greece as a holiday destination based on sun and sea. Therefore, it is undeniable that the main competitive advantage that Greece has, and the main contributor to tourism GDP comes from travellers who want the classic tourism product of sun-sea. Hatzis does highlight however that finding alternative experiences is necessary in order to expand services and spread tourism GDP throughout the country, not just have it contained within coastal or island regions.
What Hatzis failed to mention however is that the majority of these German and British tourists opt for the all-inclusive holiday package. What does this mean? Unfortunately, it means that generated revenue doesn´t spread to the local economy as the tourists stay within the resorts rather than immerse themselves in local communities. The all-inclusive model has certainly yielded a lot for Greek tourism over the years, but the financial impact is contained and therefore not everyone feels the benefits.
Short-term rentals is the opposite to the all-inclusive hotel. This tourism model is significantly better for local economies and for spreading the financial benefits further afield. For example, many destinations across Greece have felt the revenue boost in local businesses such as restaurants, supermarkets, independent shops, cafes, bars and entertainment centres. In addition, there is evidence that these type of holiday makers also take more of a cultural interest in the country and spend money at attractions such as museums and archaeological sites amongst other places.
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