Greek Prime Minister Kyriakos Mitsotakis introduced measures aimed toward addressing the detrimental affect of overtourism as guests proceed to reach in file numbers within the post-pandemic period.
The federal government has been “very concerned” about an inflow of cruise passengers throughout sure months of the yr and can start charging charges, Mitsotakis mentioned Saturday throughout his annual speech on the Thessaloniki Worldwide Truthful. It’ll additionally improve a tax associated to the climate-crisis on lodging.
Greece acquired a file 36.1 million guests in 2023, whereas arrivals rose 16% to 11.6 million within the first half of 2024, in line with the most recent information from the Financial institution of Greece. The tourism sector contributes about 20% to the economic system, making it very important to the well being of the nation.
The nation will even develop its so-called “Golden Visa” program to traders who’re prepared to place at the very least €250,000 ($277,000) into native startups. Foreigners had been beforehand required to purchase property to amass the visa.
All passengers arriving at Greek ports pays a price, and the cost shall be higher within the in style tourism islands of Santorini and Mykonos. A lodging tax for the April-to-October interval additionally shall be elevated, with income benefiting native communities.
Mitsotakis reiterated concern that components of Greece face the issue of “overtourism.” In an interview with Bloomberg in June, he introduced plans to prohibit cruise ships visiting the nation’s hottest islands from 2025.
Quick-term leases have been blamed for fueling the nation’s housing disaster, which together with excessive client costs has been on the heart of latest political debate.
The federal government will ban any new short-term leasing for at the very least one yr in three major components of Athens, Mitsotakis mentioned. Property homeowners who change leases from short-term to long-term gained’t must pay rental tax for 3 years, as will homeowners who resolve to hire their houses as an alternative of holding them off the market, he mentioned.
Vacation leases elevated an annual common of 28% from 2019 to 2023, whereas out there short-term leases doubled in the identical interval. In the meantime, lodge lodging rose simply 3.5% in that interval, in line with information printed in a Grant Thornton report for the nation’s Chamber of Resorts launched this week.
The federal government will even start a brand new €2 billion program that shall be used to cut back interest-rate prices for mortgage loans.
Extra Measures
Mitsotakis on Saturday additionally revealed quite a lot of measures aimed toward easing the price of residing, together with a discount in social insurance coverage contributions by 1 share level in 2025 as an alternative of a earlier plan for a 0.5 level lower.
The premier additionally introduced, amongst others:
- A 2.2%-to-2.5% improve in round 2 million pensions from Jan. 1.
- A rise in minimal wages starting in April
- A rise in public sector wages, particularly to docs, firefighters and staff within the military and coverage forces.
- Numerous tax reliefs to assist the self-employed, farmers and others
- Adjustments to unemployment advantages
“I don’t have a sack of reckless spending today,” he mentioned. “Our spending for 2025 is well balanced.”
Greece has already pledged to fulfill a funds major surplus — an index that exhibits income minus spending excluding curiosity funds — of two.1% of GDP for each 2024 and 2025, up from 1.9% in 2023.
Fiscal self-discipline is among the most essential standards for monetary markets, and the nation’s latest prudent funds path was one of many drivers for scores corporations to return Greece to the funding grade zone in 2023 after 13 years at junk standing.
“Healthy and rising primary surpluses, in tandem with sound nominal growth, will facilitate further significant reduction in the public debt-to-GDP, which is expected to fall to below 140% by 2027, from 161.9% in 2023,” DBRS Morningstar mentioned Friday.
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