Greek Prime Minister Kyriakos Mitsotakis unveiled a comprehensive set of measures during his address at the Thessaloniki International Fair, targeting the pressing issue of overtourism and outlining strategies to stimulate economic growth in the post-pandemic era. Recognizing the challenges posed by a record influx of visitors, Mitsotakis highlighted the need to balance the benefits of tourism with the preservation of local communities and the environment.
In response to the surge in tourist numbers, the government announced plans to implement fees for cruise passengers, particularly during peak months, as well as an increase in the climate-crisis-related tax on accommodation. These measures aim to both regulate tourist arrivals and generate revenue that will directly benefit the regions affected by overtourism.
Expanding on the initiatives, Mitsotakis introduced revisions to the "Golden Visa" program, allowing investors to obtain visas by investing in local startups, shifting away from the previous requirement of property acquisition. Additionally, the government will impose fees on passengers arriving at Greek ports, with higher charges in popular island destinations like Santorini and Mykonos.
To address the housing crisis exacerbated by short-term rentals, the government will ban new short-term leasing in key areas of Athens for at least a year. Property owners transitioning from short-term to long-term rentals will receive tax incentives, encouraging them to contribute to the long-term housing market stability. The rise in holiday rentals compared to hotel accommodations has been a focal point, with policies aiming to rebalance this trend.
Furthermore, Mitsotakis outlined plans to introduce a €2 billion program aimed at reducing interest rates on mortgage loans, providing relief to homeowners facing financial pressures. In an effort to alleviate the cost of living, the government will also implement various measures, including pension increases, minimum wage adjustments, and tax relief for self-employed individuals and farmers.
Emphasizing fiscal responsibility, Mitsotakis underscored the importance of maintaining a balanced budget and meeting primary surplus targets. Greece's commitment to financial discipline has been acknowledged by ratings agencies, culminating in a return to the investment-grade category. With projections indicating a significant reduction in public debt-to-GDP ratios by 2027, Greece is poised for sustained economic growth and stability under Mitsotakis' administration.