Panic in Greece as new tourism law threatens to tank country’s economy | World | News

The Greek government has been warned its new tourism measures threaten to undermine the country’s tourist trade – a fundamental component of Greece’s economy.

Under draft legislation, which is going through public consultation, ending tomorrow, the Ministry of Tourism has brought forward plans to regulate Airbnbs and short-term lets for the first time.

The proposals have sparked controversy, as Article Three of the draft law says that properties that were converted into short-term lets after July 28, 2011, cannot be used for that purpose.

The Greek Short-Term Accommodation Managers Association (STAMA) has written to the country’s Prime Minister Kyriakos Mitsotakis to call on his Government to amend the plans.

The ministry said in early December: “The new regulations address contemporary challenges while safeguarding the competitiveness and resilience of Greek tourism, with a strong emphasis on respect for people and the environment”.

However, STAMA argues the rules around recently converted short-term lets are “discriminatory” and “impractical”.

The group added that the provision “punishes” property owners and investors who acted in good faith and within the law to re-generate disused space.

The economic fallout consequences of the move is a major concern raised by STAMA.

The industry group highlights that millions of euros have been ploughed into upgrading properties for short-term renting, as tourism is central to the Greek economy.

Disqualifying these properties from being able to used as short-term lets, the group argues, will spark a crisis in property values.

The move will also reduce state tax revenues, the group argues, as well as dissuade future investors from putting money into the Greek economy.