INSETE: Greece’s Airbnb-frenzy Needs Regulating

Greece’s short-term rentals may have saved many struggling Greeks during the economic crisis years, but the practice needs immediate regulation, said a SETE Intelligence (INSETE) study released this month.

According to the research department of the Greek Tourism Confederation (SETE), Airbnb-style practices generated some 1.15 billion euros in over the June 2018-May 2019 period.

However, INSETE analysts note that the very size of the short-term rental market, which has swelled over the last few years, must be regulated in order to ensure fair play for the professional hospitality sector as well as avoid its impact on the long-term property market, which includes limited home availability as well as increasing prices and rents.

A case in point is a court decision in Nafplio this week which bans the operation of an Airbnb property belonging to an apartment block in the popular tourist town.

Nafplio, Greece Photo © Facebook – ΟΙ ΟΜΟΡΦΙΕΣ ΤΗΣ ΕΛΛΑΔΑΣ ΜΑΣ

The decision may serve as a precedent paving the way for similar class action suits involving property owners in residential apartment blocks who do not want their buildings to serve as tourist accommodation.

According to Greek daily Ta Nea, the court decision foresees detention for non-compliance and a 1,000-euro fine for further violations.

The INSETE report goes on to note that the home-sharing phenomenon impacts each destination differently depending on supply and demand as well as on seasonality.

INSETE data reveals that city hotels and accommodation facilities appear to have higher occupancy levels all year round but are also very competitive due to both the high demand and supply. On the other hand, hospitality options on popular islands such as Mykonos and Santorini still rely on limited availability ultimately driving prices up.

In terms of seasonality overall, according to the study, the highest occupancy levels were recorded in August 2018 at 68 percent, followed by July at 60 percent, and September at 54 percent.