Image credit: Bloomberg.
Greek Prime Minister Kyriakos Mitsotakis has announced a series of measures to address the negative impacts of overtourism and the housing crisis.
The government is concerned about the influx of cruise passengers and has decided to introduce fees for their visits. Additionally, a lodging tax will be increased, with the revenue benefiting local communities.
To tackle the housing shortage, the government will ban new short-term rentals in certain areas of Athens and offer incentives to property owners who convert short-term rentals into long-term leases.
Short-term rentals have been blamed for contributing to the housing crisis and high consumer prices. To address this, the government will also reduce interest-rate costs for mortgage loans.
Other measures announced by Mitsotakis include increasing pensions, raising minimum wages, and providing tax relief to various groups.
Despite these measures, Greece remains committed to fiscal discipline. The government aims to maintain a budget primary surplus and reduce public debt.