Greek Hoteliers ‘Very Disappointed’ with Upcoming Law for Short-term Rentals
The uncontrolled growth of the short-term rental industry was highlighted as one of the major problems hotels in Greece are called to face, according to Hellenic Chamber of Hotels (HCH) President Alexandros Vassilikos.
Speaking during the 11th HCH general assembly in Athens on Saturday, Vassilikos described the government’s rules for short-term rentals, which have been included in a new bill to be voted next month, as weak.
“I cannot but convey the industry’s great disappointment at the extremely weak legislative initiative on short-term rentals,” the chamber’s president stressed, underlining that issues taking place in Greece with regard to Airbnb-style accommodation has been confirmed everywhere in the world.
“What we are living in Greece has been confirmed: a steep increase in rents, the creation of housing problems for families, for young people, for students, for people in important job positions that must work every day in communities and destinations such as doctors, nurses, teachers, police and coast guard officials,” he said.
“The positions of the chamber has remained unchanged for a decade,” he said, adding that Greece should follow the example of the “international trend” that sees governments, local authorities and municipalities imposing strict regulations on short-term rentals and having local communities as their “top priority”.
The Greek Tourism Confederation’s (SETE) new president, Yiannis Paraschis, also referred to the issue of short-term rentals in Greece, highlighting that competition on equal terms with hotels must be ensured.
“The legislative framework regarding the long-awaited regulations for short-term rentals needs improvements and the reason is twofold. On the one hand, it is necessary to ensure business activity on equal terms, and on the other hand, it is a major social issue of finding accommodation in certain areas,” SETE’s president said.
On her part, Greek Tourism Minister Olga Kefalogianni said that the law to be voted in parliament in December is a first step in the right direction.
“We are aiming to incorporate into the law additional rules regarding minimum technical and operational specifications, so that short-term rentals do not operate in unfair competition with hotels,” she said.
“We certainly want this part of the market but we want it to operate in addition to hotels,” Kefalogianni added.
New ‘climate resilience levy’ causing concern
Another issue worrying Greek hoteliers is the new “climate resilience levy” to be imposed on their hotel guests.
Set to replace the infamous stayover tax, the new “climate resilience levy” will also be charged on hotel guests per daily use and per room or rented room. The amount will depend on the hotel category and be charged during the months of March to October (levy will range from 1.5-euros to 10 euros) and November to February at a reduced rate (0.5 euros to 4 euros). It is noted that, unlike the stayover tax, the new “climate resilience levy” will also apply to short-term rentals.
“The new levy to be imposed on guests of Greek hotels has caused major concern among hoteliers… It is obvious that taxation with a new accommodation fee will damage the competitiveness of the Greek tourism product,” Vassilikos said.
On his part, SETE’s president said it is unfair for the “climate resilience levy” to burden only one sector of the Greek economy.
“In any case, it is necessary to take into account other criteria, which have to do with the profitability of the levy per destination, as well as with the different needs per region, always based on the spatial and time-related expansion of tourism,” he said.
Small hotels not qualified for grants
Moreover, during his speech, the chamber’s president referred to the fact that small hotels can not apply for grants for upgrade actions relating to green and digital transition.
Speaking on the matter, Tourism Minister Olga Kefalogianni said the ministry is making every effort to optimally utilize the resources of the EU funds for the 2021-2027 programming period and the Development Law.
“It is our firm position that more accommodations and hotels of 3- and 2-star category should participate in these programs. Hotels of lower categories should not be deprived of renovation and modernization possibilities. Especially regarding the issue of energy upgrading,” she said.
Lastly, Vassilikos referred to the staff shortages in Greek hotels.
“Over 53,000 job positions in hotels were not covered in 2023,” he stressed.
Citing data from the Institute of Tourism Research and Forecasts (ITEP), the chamber’s president said the number corresponded to 20 percent of the sector’s staffing needs this year.
“The challenges are big and we have a lot to do in order for our industry to continue to be a strong pillar of development and social cohesion… The time has come for the transition of Greek hotels. The moment has come where we will not just follow international trends, but we will create them,” he said.
HOTREC to hold conference on climate change in Greece
Moreover, during the general assembly, the chamber’s president announced that HOTREC, the umbrella association for Hotels, Restaurants and Cafes in Europe, in spring will hold a conference on climate change on Rhodes with the participation of all European tourism operators. Vassilikos is the president of HOTREC, which brings together 47 national associations in 36 European countries and serves as the voice of the European hospitality industry.
HOTREC’s event in Greece will be held with the support of the Greek government and financed by the Region of South Aegean.
The 11th Hellenic Chamber of Hotels general assembly was held on the sidelines of the Xenia 2023 hospitality trade show at the Metropolitan Expo center.
The Greek Travel Pages (GTP) was a media sponsor for the chamber’s general assembly and the Xenia 2023 show.
MR Vasilikos should be deeplybdissapointed for the bad condition and negligence in the holes on behalf of which he is supposedly speaking. Good service is have nothing to be afraid of short term rentals. He reminds me of the reactions of carriege people when cars were invented.
Am I a tourist to pay for your bad weather?
You didn’t need that.