Short-term rentals skyrocketing
Hoteliers are growing increasingly frustrated over what they describe as unfair competition
Hoteliers are becoming more vocal about unfair competition as the number of apartments available for short-term rental to foreign and non-resident travelers in the country continues to grow, in spite of the government’s recent tax initiatives.
Moreover, there are an increasing number of arguments attributing the local phenomenon of overtourism to short-term rentals, as the increase in hotel room supply is so small that it is unable to account for the significant rise in foreign visitors to Greece.
There is also an increasing amount of social discontent regarding the difficulties in housing public servants, students, and seasonal workers in popular tourist destinations, as well as the lack of affordable long-term rental rates in an increasing number of regions in the country.
The government for its part is preparing measures for the sustainable operation of tourism.
According to a Grant Thornton report that was presented on Tuesday in Athens, short-term rentals have a substantial environmental cost, far more than hotels. This burden includes garbage generation and consumption of energy.
Furthermore, in terms of available beds, the supply from short-term rentals exceeds that of the coordinated hotel sector. According to data from the Institute of the Association of Greek Tourism Enterprises (INSETE), the supply of beds available for short-term rental in July exceeded 1 million, while the Hellenic Chamber of Hotels reported 888,000 beds available.
At the same time, of course, the income of thousands of small property owners is also boosted by this type of exploitation, which in turn boosts tax revenues and economic activity through the expenditure made by them and their customers.
Referring to the Grant Thornton report, Nasos Gavalas, president of the he Association of Short Term Rental Companies (STAMA), told Kathimerini that “we are not surprised by the new study commissioned by the Hellenic Chamber of Hotels.” The key word here, he said, is “commissioned.”
Gavalas said the most important thing is that the figures used to record the market data are incorrect, as entries are counted without any qualitative analysis. “It must be made clear that the short-term lease only has an AMA (Property Registry Number) and the exact number of active properties (with at least one reservation per month) is known only to the Independent Authority for Public Revenue (AADE).”
