Recent data highlights the rapid growth of short-term rental properties in Greece, particularly in the South Aegean region, which is the country's top tourist destination. According to a report by Grant Thornton, the turnover for short-term rentals exceeded €3.3 billion two years ago, and the bar has been raised even higher today.
AirDNA data processed by the Institute of Tourism Research and Forecasting shows an explosion in short-term rentals. On Airbnb alone, there are 279,886 rental units available. This raises the question of whether the current infrastructure -ports, airports, and more - can handle the influx of 40 million visitors. There's also growing concern about whether the tourism industry is developing in a sustainable and organized manner, with the government considering restrictions to alleviate pressure in high-demand areas.
Explosive growth of Airbnb rentals in the Aegean
While owning short-term rentals helps individuals supplement their income, the situation has dramatically shifted from the original concept of a sharing economy. The South Aegean islands, a hub of Greek tourism, have seen massive growth in Airbnb-style rentals, exacerbating the housing crisis for local professionals like teachers and doctors.
A decade ago, the South Aegean islands had fewer than 8,000 short-term rental beds. Today, that number exceeds 133,000 - a staggering 1,688% increase from 2014 to 2023, compared to just a 21.44% rise in hotel beds. On islands like Santorini, where no Airbnb beds existed in 2014, there are now nearly 11,000. Paros and Mykonos have also seen similarly shocking increases, with short-term rental beds outnumbering hotel beds by thousands.
Industry response
Yannis Hatzis, president of the Panhellenic Federation of Hoteliers, comments on the situation: "The comparative data from ITEP reveals the unchecked growth of short-term rentals, which far outpaces hotel growth. This has strained infrastructure and worsened the housing crisis through rising rents. Regulation is necessary to control this expansion, as a free market does not mean an unfettered market."
Hatzis also emphasizes that any increase in visitor taxes should address the real causes of these problems and not disproportionately target the hotel industry. "The hotel industry will not tolerate unfair revenue-collection strategies. The burden should fall on those responsible, not on hoteliers."
This evolving landscape calls for better regulation and balanced solutions to ensure sustainable tourism in Greece.
