Cuts of 30% in tourist accommodations and short term rentals in Cyclades

The new framework, which the tourism industry and the energy sector have been waiting for for years - due to land use conflicts with wind and photovoltaic park installations - is now in its final stages. According to information, only minor technical and legal details remain for the regulations to be "locked" and officially presented. Two meetings of the political leadership and officials of the two co-responsible ministries of Environment and Tourism have already been held, while a few days ago the issue was also discussed at the Maximos Mansion where the final guidelines for the Spatial Planning of Tourism were given. The corresponding special spatial plans for Renewable Energy Sources and Industry, which are milestones of the Recovery Fund, will follow almost simultaneously.

Restrictions
The central axis of the planning for the Spatial Planning of Tourism is the introduction of quantitative and qualitative restrictions on tourist development, with particular emphasis on areas that show strong phenomena of overtourism. In the Cyclades, and especially on islands with high pressure such as Mykonos and Santorini, but also on smaller islands that are following an upward trend, the reduction of the capacity in tourist beds is being considered in relation to the scenarios presented in the previous plan. According to information from competent sources participating in the meetings at the Ministry of Tourism, the reductions will range from 20% to 30%.

At the same time, the imposition of strict restrictions - even bans - on the conversion of new homes into short-term rental accommodation (Airbnb type) in the so-called "red" areas, i.e. in mature and saturated tourist destinations is also on the table. In particular, the possibility of new building permits being accompanied by an explicit ban on changing use to tourist exploitation is being considered.

Short-term rental (Airbnb) is a red flag for tourist businesses for which the previous draft of the Spatial Planning of tourism gave a direction of restriction with the aim of determining it in relation to the number of beds in tourist accommodations.

Today it is estimated that there are over 1 million short-term rental homes on the market, based on data recorded at the peak of the summer of 2025 by the Institute of the Association of Greek Tourist Businesses (INSETE).

Strong pressures
Respectively, the beds in hotels are almost 913,000 without counting the rooms for rent. This, as it is emphasized, shows that all the beds built in hotels in the last 70 years were made with short-term rental in the last 7 years.

The Spatial Planning of Tourism comes at a time of intense pressure on island destinations, especially in the Cyclades, where blatant cases of uncontrolled tourism development are being recorded. A typical example is islands such as Milos, where in recent years entire hotel units have appeared without the required licensing framework, with the tolerance - or even support - of the administration, only to find themselves faced with a "freeze" of work and investment plans.

The development of large and intensive tourist investments has caused strong reactions in local communities, which appear agitated and point out in all tones that the only way to effectively protect the island landscape is the existence of a clear and binding spatial planning.

Excessive building, the complete lack of the concept of carrying capacity - that is, the number of visitors and infrastructure that an area can withstand - but also the monoculture of large and complex tourist accommodations, mainly in areas outside the plan, as well as the need to limit short-term rentals constitute the main "red lines" of the country's spatial planning.

“Red lines”
Based on the previous draft of the Tourism Strategy, presented in the summer of 2024, and for which no significant changes are expected in terms of zoning, the spatial organization of tourist accommodation is structured into five basic categories: saturated (or control areas), developed, developing, areas with development potential and areas of mild development.

The saturated areas that are subject to strict restrictions include Santorini, Mykonos, southern Tinos, Malia, Rhodes, the Heraklion Peninsula, Nea Kydonia Chania, the coast of Pieria, Skiathos, Corfu, Zakynthos, eastern Kos as well as Ermoupoli on Syros.

The signing of the relevant Joint Ministerial Decision is expected within the next month. The Special Spatial Planning Framework for Tourism has literally gone through 40 waves: its preparation began in 2018, was delivered to the Ministry of Tourism in 2021 after long delays, and was put out for public consultation in July 2024. It is worth noting that the previous Spatial Planning Frameworks of 2009 and 2013 had lapsed in the Council of State, leaving a significant institutional vacuum for years. With the new framework, the government attempts to set clear rules, balancing between protecting saturated destinations and maintaining investment activity.