Short-term rentals still rising

Short-term rentals still rising

Despite the mainly fiscal measures the government imposed last fall, the supply of short-term rentals continues to soar. In terms of available beds it is now greater than that of the hotel market, while for the first time this summer it is expected to exceed the limit of 1 million beds.

According to data from the Institute of the Greek Tourism Confederation (INSETE), at the rate that the supply of available short-term rental beds is increasing, they will soon exceed 1 million, compared to 888,000 beds available at hotels, according to the latest available data from the Hellenic Chamber of Hotels.

Based on these projections, from July 2019 until this year, 300,000 beds will have been added to short-term rentals compared to just 30,000 at hotels. The percentage increase in the supply of available beds far exceeds the increase in demand, as well as revenue, from foreign travelers, based on Bank of Greece data.

As Aris Ikkos, the research director of INSETE, explains to Kathimerini, based on the occupancy rates and the cost of overnight stays, it is estimated that short-term rentals are now clearly another tourism industry with an annual turnover of at least 3.5 billion euros, against a turnover of €10 billion for hotels.

The speed with which this market has grown over the past five years and the delay with which it has been included in any state plans to strengthen infrastructure and services that serve travelers have exacerbated problems at many destinations. They are the deficiency in port infrastructure, in the airports still under state control, in waste management, water supply, electricity and also policing.

In addition, it continues to make it difficult for government officials, such as police officers, firefighters, doctors, and seasonal workers, mainly at summer destinations, to find housing. That’s why the government is considering new measures this fall, including a limit on the time a property can be rented out short-term – to 60 or 90 days – and limiting the number of properties which in total will be available at any time in areas with significant housing shortages.

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