A new chapter in the relationship between the SETE and the short-term rental sector appears to be opening, although it remains unclear whether this signals a genuine shift in position or an attempt to establish a broader framework of dialogue with a sector that has become an integral part of Greece’s tourism product.
The new president of the Association of Greek Tourism Enterprises (SETE), Agapi Sbokou, who comes from the hotel industry, acknowledged during a meeting with journalists that short-term rentals are now a “reality” and part of the tourism offering. At the same time, she left open the possibility of the sector becoming a partner of SETE, provided that the regulatory framework governing it is completed.
The statement is particularly significant given that short-term rentals have been at the centre of intense confrontation with the hotel industry in recent years. The rapid growth of short-term rentals created a new and powerful competitor for hotels, while debates over taxation, housing, urban functionality and the quality of the tourism product led to a series of government interventions.
The picture today, however, is different from that of previous years. Short-term rentals have reached significant scale and have become a permanent part of the tourism market. At the same time, the regulatory framework has been substantially strengthened, with new obligations and restrictions added over the past few years.
“It cannot be addressed through a one-size-fits-all approach”
Agapi Sbokou appeared to reject a uniform approach to short-term rentals. As she noted, their importance and impact are different in a major urban centre compared with a tourism destination where there may not be sufficient accommodation capacity.
“It cannot be addressed in isolation either,” she said, referring to the potential impact of short-term rentals on housing, the functioning of cities, the quality of destinations and pressure on infrastructure.
According to Sbokou, any restrictions should be differentiated by region. She also identified transparency, enforcement, safety requirements, fair competition, respect for the landscape and local communities, and alignment with the carrying capacity of each destination as key priorities.
The reference to carrying capacity is particularly important, as the issue has become a central element in the debate over tourism development and is also included in the new planning framework for tourism.
The question of the “new” regulatory framework
However, one critical question remains unanswered: What exactly is the additional regulatory framework that SETE considers necessary?
Short-term rentals no longer operate in an environment without rules. In recent years, new tax and operational obligations have been introduced, along with property standards, restrictions in specific areas and increased inspections. At the same time, representatives of the sector argue that the existing framework is already sufficient and that the continuous addition of new regulations creates uncertainty and additional burdens.
Sbokou did not clarify which additional measures SETE considers necessary. As a result, the debate is likely to become more significant in the coming period, as the association’s new leadership is expected to further define its position.
The possibility of institutional engagement with the short-term rental sector is also of particular interest. The SETE president left open the possibility of the sector joining the association’s partners, on the condition that the regulatory framework is completed.
This possibility, however, does not automatically mean that it is an objective pursued by short-term rental owners and managers themselves. The sector has developed its own forms of representation and its own priorities in recent years, and it cannot be assumed that it would necessarily welcome integration into an organisation with a historically strong presence and influence of the hotel industry.
The debate, moreover, is not only about representation. It also concerns the operating model of short-term rentals, which are currently treated under Greek law as a different activity from hotel accommodation.
Hotels and short-term rentals
The equation remains complex. SETE has traditionally represented the organised tourism sector, with the hotel industry forming its core. At the same time, hoteliers have strongly criticised short-term rentals, arguing that they create conditions of unfair competition and affect the housing market.
Short-term rental owners and managers, on the other hand, argue that they operate under a different model and that treating them in the same way as hotels could alter the nature of the activity.
Against this backdrop, the new SETE president’s remarks represent more an opening for discussion than a fully developed agreement. Whether this leads to meaningful institutional convergence or a new confrontation will depend on the content of the regulations ultimately proposed.
What is certain is that short-term rentals can no longer be ignored in tourism policy planning. The key question, however, is whether the next phase will be based on more blanket restrictions or on a differentiated regulatory model, adapted to the characteristics and needs of each destination.
And, above all, whether the new dialogue will be conducted on the basis of coexistence or integration of short-term rentals into a model shaped primarily around the needs and priorities of the hotel industry.
