Greece plans to raise tourist taxes in 2025, affecting hotels, city tours, and cruise passengers. This change is meant to fund upgrades to tourism infrastructure and manage the strain from high visitor numbers.
Tourism is a key part of Greece’s economy, so the tax increase may change how travelers explore the country.
Tourists to pay significantly more starting 2025
Starting in January 2025, tourists in Greece will pay higher taxes.
Accommodation taxes will rise to €2 per night in the low season and €8 per night from April to October, up from the current €0.50 and €1.50.
Guests at luxury hotels may pay an extra €15 per night, and cruise passengers will face a €20 tax for stops at popular locations like Mykonos and Santorini.
These changes come as cruise tourism grows 20% annually, with over eight million visitors expected in 2025.
The Greek government estimates these taxes will generate €400 million a year, nearly double last year’s amount. Officials argue that the funds will improve tourism infrastructure, which is under strain from record visitor numbers.
Athens faces infrastructure strain due to tourism surge
Athens and other tourist hotspots are under pressure from rising visitor numbers.
In Athens, short-term rentals and hotels in central areas doubled between 2018 and 2023, driving up real estate and rental prices in neighborhoods like Plaka and Monastiraki.
Tourism also strains basic utilities, with half of the city’s energy use linked to visitors.
The islands face similar challenges.
Mykonos, with 12,000 residents, often welcomes up to 20,000 cruise passengers daily. Santorini, home to 15,500 people, saw as many as 17,000 visitors on its busiest days in summer 2023.
These issues show the need for better tourism management.
Visitors, migrants expected to feel the impact of new taxes
Tourists may need to adjust their budgets as higher taxes increase the cost of holidays in Greece. Cruise passengers visiting popular destinations will pay more, which might affect cruise itineraries.
For long-term visitors and migrants, higher living costs in tourist-heavy areas could worsen affordability problems.
These tax changes reflect wider European Union efforts to manage tourism, such as the upcoming European Travel Information and Authorization System (ETIAS) for non-European Union (EU) travelers.
The new taxes may encourage tourists to visit less-crowded areas, easing pressure on popular spots and supporting regional tourism. However, Greece must balance the need for revenue with remaining an affordable destination.
EU policies may influence tourism and immigration changes
The tax increase shows Greece’s focus on sustainable tourism and fiscal stability.
To recover from its long debt crisis, the government plans to rely less on foreign loans by raising more revenue locally. The additional tax money will fund infrastructure projects to handle tourism challenges, such as waste management and energy use.
Greece’s move could inspire other EU countries facing similar tourism pressures. Neighboring nations with heavy tourism may consider higher tourist taxes to ease infrastructure strain and address environmental issues.
A call for sustainable tourism
Greece’s tax increases highlight the importance of sustainable tourism that supports both residents and visitors.
While some travelers might be discouraged, the changes focus on creating better experiences and protecting the country’s natural and cultural heritage.
By improving infrastructure and managing tourism carefully, Greece can balance economic growth with long-term sustainability. Visitors and businesses must adjust to these changes to help Greece stay a top destination.