Greece to ban new short-term lets in Athens for at least a year

By Stamos Prousalis and Angeliki Koutantou

ATHENS (Reuters) - A ban on new licences for short-term rentals in three districts in central Athens will be in force for at least a year, the Greek government said on Monday, also raising the tax on such holiday lets.

Like many other European tourism destinations, Greece is seeking to balance a profitable industry fuelled by online platforms such as Airbnb with the needs of locals facing a housing shortage.

A lack of housing and the rising cost of living prompted the country this month to announce an increase in a tax on short-term rentals, ban new licences in central Athens and give homeowners incentives to switch to long-term rentals.

Detailing that plan, Greek Tourism Minister Olga Kefalogianni said on Monday that the ban for new licences on short-term rentals in three districts in central Athens could be extended beyond the initial one year.

"We have found that they (short-term rentals) operate somehow as hotels, while there is also a lot of pressure on society," Kefalogianni told reporters.

The government said the ban on new short-term lets in Athens would take effect on Jan. 1, 2025.

With many homeowners choosing short-term lets for their property, Athenians are having a hard time to find an affordable house to rent.

"I was looking for a house for eight-nine months and ended up in the one I'm in now," said Alma Lazi, 34, a private sector worker who lives in the central Athens borough of Pangrati.

"Even during that period when I was looking and expanding the range of areas that I was considering, I didn't find anything I could afford to maintain."

GREECE EYES RECORD TOURISM REVENUE

A daily tax on short-term rentals which helps the country deal with the impact of natural disasters related to climate change will be increased to 8 euros from 1.5 euros for the April-to-October period, Finance Minister Kostis Hatzidakis said. The tax will rise to 2 euros from 0.5 euros for the winter months.

Greece expects its revenue from tourism to hit 22 billion euros this year, another record high, Kefalogianni said.

The Mediterranean country, with its crystal-clear waters and pristine beaches, reported record tourism revenue of 20.6 billion euros last year. Data so far indicated that 2024 will be another good year, Kefalogianni added.

"Greece is in the top 10 of the most popular tourist destinations in the world," she said. "We can be hopeful that revenues could reach as much as 22 billion euros."

A 20-euro levy on cruise ship visitors to the islands of Santorini and Mykonos during the peak summer season, another measure announced earlier this month to battle over-tourism, will take effect next year, Kefalogianni said.

($1 = 0.8986 euros)

(Reporting by Lefteris Papadimas and Angeliki Koutantou; Editing by Tomasz Janowski, Keith Weir and Emelia Sithole-Matarise)