Greek Prime Minister Kyriakos Mitsotakis introduced measures aimed toward addressing the damaging influence of overtourism as guests proceed to reach in report numbers within the post-pandemic period.
The federal government has been “very involved” about an inflow of cruise passengers throughout sure months of the 12 months and can start charging charges, Mitsotakis stated Saturday throughout his annual speech on the Thessaloniki Worldwide Truthful. It is going to additionally enhance a tax associated to the climate-crisis on lodging.
Greece acquired a report 36.1 million guests in 2023, whereas arrivals rose 16% to 11.6 million within the first half of 2024, in keeping with the newest 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 broaden its so-called “Golden Visa” program to buyers who’re prepared to place not less than €250,000 ($277,000) into native startups. Foreigners had been beforehand required to purchase property to accumulate the visa.
All passengers arriving at Greek ports pays a price, and the cost might be larger within the standard tourism islands of Santorini and Mykonos. A lodging tax for the April-to-October interval additionally might be elevated, with income benefiting native communities.
Mitsotakis reiterated concern that elements 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.
Brief-term leases have been blamed for fueling the nation’s housing disaster, which together with excessive client costs has been on the middle of current political debate.
The federal government will ban any new short-term leasing for not less than one 12 months in three primary elements of Athens, Mitsotakis stated. Property house owners who change leases from short-term to long-term gained’t need to pay rental tax for 3 years, as will house owners who determine to lease their houses as a substitute of retaining them off the market, he stated.
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, resort lodging rose simply 3.5% in that interval, in keeping with information printed in a Grant Thornton report for the nation’s Chamber of Lodges launched this week.
The federal government may even start a brand new €2 billion program that might be used to cut back interest-rate prices for mortgage loans.
Extra Measures
Mitsotakis on Saturday additionally revealed numerous measures aimed toward easing the price of residing, together with a discount in social insurance coverage contributions by 1 proportion level in 2025 as a substitute 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 docs, firefighters and employees within the military and coverage forces.
- Numerous tax reliefs to assist the self-employed, farmers and others
- Modifications to unemployment advantages
“I don’t have a sack of reckless spending at this time,” he stated. “Our spending for 2025 is nicely balanced.”
Greece has already pledged to satisfy a finances main 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 likely one of the most essential standards for monetary markets, and the nation’s current prudent finances path was one of many drivers for rankings firms to return Greece to the funding grade zone in 2023 after 13 years at junk standing.
“Wholesome and rising main surpluses, in tandem with sound nominal progress, will facilitate additional vital discount within the public debt-to-GDP, which is anticipated to fall to under 140% by 2027, from 161.9% in 2023,” DBRS Morningstar stated Friday.
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