Greek PM Addresses Tourism, Construction Restrictions, Infrastructure and Short-term Rentals

Greek Prime Minister Kyriakos Mitsotakis recently announced new restrictions on construction outside designated zoning areas, aimed at regulating development and protecting Greece’s islands.

During the “Reimagine Tourism in Greece” conference in Athens, Mitsotakis stated that new urban plans would define building capacities and regulations for islands and settlements. In a discussion with Kathimerini’s Executive Editor, Alexis Papachelas, on the theme “Tourism as a Strategic Priority for Greece”, he noted that these local urban plans are expected to be ready in approximately three years. Until then, transitional regulations will be implemented and restrictions on out-of-plan construction will be imposed.

The planned building restrictions were just one of the topics addressed by the Greek PM during the conference, the main focus of which was tourism.

“Our primary goal is to extend the tourism season so that not all visitors arrive in July and August, and to promote tourism in regions where it is less prevalent,” he said.

When the conversation shifted to overtourism, the Prime Minister asserted, “Greece does not have, and will not have, an overtourism problem. In comparison to Spain, or when considering Crete versus Majorca, Greece is in a better position.”

Infrastructure: Challenges ahead

During his discussion with Papachelas, Mitsotakis acknowledged that some infrastructure projects in Greece are lagging. He differentiated between infrastructures of “national scope” and those that depend on local government.

“Progress has been made on the basic infrastructures that fall under the state’s responsibility,” he said. “However, in some areas, such as waste management, we are still not where we want to be.”

“Our country now boasts modern airports and new highways, which facilitate tourist access to previously isolated areas,” he said. Mitsotakis also highlighted developments in port infrastructure, noting that while steps have been taken, “we still have a long way to go”.

Regarding water shortages, which pose a significant threat to tourism, Mitsotakis acknowledged the critical nature of the issue. “Currently, we are focusing on temporary solutions, but we are also planning more medium-term solutions, particularly for the islands,” he said.

When discussing swimming pools on the islands, he emphasized the need for evidence-based decision-making. “If pools account for 20 percent of consumption, we can consider limitations, but if it’s only 1 percent, it’s not a significant water management issue.”

Transportation plan for Attica

Mitsotakis also emphasized the significant investment opportunities associated with opening up the city of Athens to the coastline, referring to the Ellinikon Project – that includes the development of an Integrated Resort Complex (IRC), at the site of the former Athens airport. He noted that this extensive real estate development will necessitate an update of the transportation plan in the Attica region, as the project will place additional burdens on the road network.

Climate crisis

Mitsotakis underlined that the climate crisis necessitates greater investment of resources within the country to adapt to new circumstances. “We must recognize that significant investments are required to protect against climate change, especially as its impacts are already evident.”

He stressed the importance of allocating more resources for “climate adaptation” efforts — not only to mitigate the causes of climate change but also to prepare for its effects. Such actions must be centrally organized with active participation from local communities, the Greek PM stressed.

Short-term rentals

Photo source: Prime Minister’s Press Office

Shifting the discussion to the short-term rental market, Mitsotakis acknowledged that “the sector is a reality that is here to stay” and has many positive aspects. “This activity is easily taxed and generates substantial revenue for the Greek state, allowing property owners to make productive use of their assets. Moreover, it utilizes existing buildings, reducing the need for new construction.”

However, he also noted some challenges. “In certain neighborhoods of Athens, the impact is not only felt in rising rents but also in the alteration of community character. That’s why we’ve implemented temporary measures to assess the extent of the problem, including a pause on new short-term rental permits in the first three districts of Athens, with the possibility of extending this measure to other areas.”

Mitsotakis differentiated between individual homeowners entering the short-term rental market and those using it as a business that competes with traditional tourism. He mentioned that the government has enacted fiscal and regulatory interventions to ensure that those engaged in short-term rentals meet the same standards as hotels.

He pointed out additional issues that may arise from short-term rentals, such as student housing shortages. “In my hometown of Chania, if we have a shortage of student accommodations while many properties are listed on Airbnb, it can push up rents and make it difficult for students to find housing. We are prepared to intervene in such cases.”

‘Greece has affordable destinations’

During the discussion, Papachelas referenced a recent survey indicating that many Greeks are critical of the high costs associated with vacationing in their own country, with 59 percent stating these expenses deter them from visiting their preferred destinations.

In response, the Prime Minister highlighted the social tourism program “Tourism for All,” which subsidizes vacations for individuals with lower incomes. He noted that while some popular destinations can be expensive, “fortunately, there are also many more affordable options available in Greece”.

Tourism education

Mitsotakis also announced plans to collaborate with the private sector to establish a top-ranked tourism professional school in Greece, aimed at inspiring the younger generation to view tourism as a viable career path rather than just a temporary job.

“We must convince young people that a career in tourism can be both creative and lucrative,” he said.

Organized by Kathimerini, the annual “Reimagine Tourism in Greece” conference aims to promote sustainable tourism by gathering leading thinkers, political and business leaders, and key figures from the hospitality industry.