Greek Prime Minister Kyriakos Mitsotakis introduced measures aimed toward addressing the damaging affect of overtourism as guests proceed to reach in report 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 Honest. It would additionally enhance a tax associated to the climate-crisis on lodging.
Greece obtained a report 36.1 million guests in 2023, whereas arrivals rose 16% to 11.6 million within the first half of 2024, in accordance with the most recent information from the Financial institution of Greece. The tourism sector contributes about 20% to the economic system, making it important to the well being of the nation.
The nation may even increase its so-called “Golden Visa” program to traders who’re prepared to place no less than €250,000 ($277,000) into native startups. Foreigners have been beforehand required to purchase property to amass the visa.
All passengers arriving at Greek ports pays a payment, and the cost will probably be larger within the standard tourism islands of Santorini and Mykonos. A lodging tax for the April-to-October interval additionally will probably 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 limit 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 no less than one yr in three essential components of Athens, Mitsotakis mentioned. Property homeowners who change leases from short-term to long-term gained’t need to pay rental tax for 3 years, as will homeowners who determine to lease their properties as an alternative of holding them off the market, he mentioned.
Vacation leases elevated an annual common of 28% from 2019 to 2023, whereas obtainable short-term leases doubled in the identical interval. In the meantime, lodge lodging rose simply 3.5% in that interval, in accordance with information revealed in a Grant Thornton report for the nation’s Chamber of Inns launched this week.
The federal government may even start a brand new €2 billion program that will probably be used to cut back interest-rate prices for mortgage loans.
Extra Measures
Mitsotakis on Saturday additionally revealed plenty of measures aimed toward easing the price of dwelling, together with a discount in social insurance coverage contributions by 1 proportion 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% enhance in round 2 million pensions from Jan. 1.
- A rise in minimal wages starting in April
- A rise in public sector wages, particularly to medical doctors, firefighters and employees 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 price range major surplus — an index that reveals 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 likely one of the most necessary standards for monetary markets, and the nation’s latest prudent price range 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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