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Greece Takes Bold Steps To Combat Over-Tourism: A Look At Europe’s Efforts

As Europe continues to be a top destination for global travelers, Greece is among the countries grappling with the challenges of over-tourism. With a surge in visitors to its islands and cultural landmarks, the country is introducing a variety of strategies to protect its rich heritage and ensure sustainable growth in the tourism sector.

In 2025, Greece will continue to push forward with measures aimed at managing the overwhelming number of tourists, including taxes, visitor caps, and stricter regulations on short-term rentals. These efforts are part of a broader European trend as countries across the continent seek ways to balance the economic benefits of tourism with the preservation of their cultural and environmental assets.

Greece’s Tourism Strategies: Taxes, Fees, And Visitor Limits

Greece is taking a multi-faceted approach to address the challenges of over-tourism, with both increased fees and stricter regulations. Starting in 2025, tourist taxes for hotel stays will range from €1.50 per night for budget accommodations to €15 per night for luxury hotels during peak periods. These rates are designed to balance tourist influx with the need to support the local economy throughout the year.

In addition to the accommodation tax, Greece will impose a €20 landing fee on cruise passengers visiting popular islands such as Mykonos and Santorini. Mykonos, which saw over 1.2 million cruise passengers in 2024, has a permanent population of just 10,000. The fee is aimed at easing the pressure on local infrastructure while ensuring the sustainability of these destinations.

Furthermore, Athens is taking steps to manage short-term rentals in the city center. Starting January 1, 2025, new licenses for short-term accommodations in three central districts will be banned, a measure designed to alleviate housing shortages and reduce pressure on local services. This policy is likely to extend beyond its one-year trial period.

Amsterdam Leads With Green Tourism Policies

While Greece is taking steps to address over-tourism, cities like Amsterdam are leading the way with innovative green tourism policies. In celebration of its 750th anniversary in 2025, the Dutch capital has already implemented one of Europe’s highest tourist taxes—12.5% on accommodation costs. Additionally, Amsterdam has banned buses over 7.5 tons from the city center, and is working towards introducing “non-emission” zones, where scooters and mopeds will be banned.

These measures are part of a long-term strategy to create a more sustainable tourism model, despite the potential short-term rise in costs for tourists. Amsterdam’s focus on green initiatives aims to reduce the environmental impact of tourism, and by 2025, passenger vessels and yachts will be subject to stricter regulations.

Venice’s Tourist Tax And Regulations For Sustainable Growth

Venice, another popular European destination, has also implemented measures to curb over-tourism. In 2024, the city introduced a €5 per-day tourist tax, which will expand to 54 days in 2025, with increased rates for visitors who do not pay in advance. This initiative has raised €2.2 million and reflects Venice’s ongoing effort to balance tourist flows with the needs of its residents.

The city has also tightened regulations for short-term rentals, limiting property owners to renting their homes for only 120 days per year unless they meet specific environmental criteria. These actions are designed to mitigate the pressure of mass tourism while creating a more sustainable environment for both locals and visitors.

Pompeii Takes Action To Preserve Its Legacy

In Italy, Pompeii is stepping up its efforts to manage over-tourism with a daily cap of 20,000 visitors, set to begin in November 2024. During peak seasons, this cap will be further reduced, and visitors will be required to purchase tickets online, ensuring a more controlled and timed entry. These measures follow similar strategies used by cultural institutions like the Acropolis Museum in Athens and the Louvre in Paris, where visitor caps have been successfully implemented to protect cultural heritage.

The UK’s Response To Over-Tourism: New “Tourist Tax” Policies

In the UK, the introduction of the Electronic Travel Authorization (ETA) system will require non-European travelers to apply for entry permission starting January 2025. This £10 fee, which is linked to passports, allows multiple entries over two years and helps manage the flow of international visitors while enhancing security.

Meanwhile, Scotland is exploring the implementation of a 5% tourist tax, which is still under discussion. Cities like Edinburgh and councils in the Highlands have proposed such a tax to curb over-tourism, though its implementation is uncertain for 2025.

Portugal’s Growing Tourist Fees

Portugal is also joining the ranks of countries addressing over-tourism. As of 2025, Lisbon will increase its tourist fee to €4 per night for hotel guests, while Porto’s fee will rise to €3. Several municipalities across the Azores and Madeira have also started imposing tourist taxes, further expanding the trend.

Facing The Big Questions Of Over-Tourism

As European destinations continue to implement measures to manage over-tourism, several important questions arise: Can tourism grow without damaging the cultural and social fabric of popular destinations? Will taxes, visitor caps, and short-term bans help mitigate the negative impacts of mass tourism? And, crucially, how can countries find a balance between economic development and the preservation of cultural heritage?

These challenges will shape the future of tourism in Greece and across Europe, with each country looking for ways to strike that delicate balance. For Greece, these ongoing changes signify a commitment to ensuring that its world-renowned sites and vibrant communities remain sustainable and protected for future generations.

ECB Launches Geopolitical Stress Tests For 110 Eurozone Banks

The European Central Bank is preparing a new round of geopolitical stress tests aimed at assessing potential risks to major financial institutions across the euro area. Up to 110 systemic banks, including institutions in Greece and the Bank of Cyprus, will take part in the exercise, which examines how geopolitical events could affect financial stability.

Timeline And Testing Process

Banks are expected to submit initial data on March 16, 2026. Supervisors will review the information in April, while the final results are scheduled to be published in July 2026. The process forms part of the ECB’s broader supervisory work to evaluate financial system resilience under different risk scenarios.

Geopolitical Shock As The Primary Concern

The stress tests place particular emphasis on geopolitical risks. These may include armed conflicts, economic sanctions, cyberattacks and energy supply disruptions. Such events can affect banks through changes in market conditions, borrower solvency and sector exposure. Lending portfolios linked to regions or industries affected by geopolitical developments may face higher risk levels.

Reverse Stress Testing: A Tailored Approach

Unlike traditional stress tests that apply the same scenario to all institutions, the reverse stress test requires each bank to define a scenario that could significantly affect its capital position. Banks must identify a geopolitical shock that could reduce their Common Equity Tier 1 (CET1) ratio by at least 300 basis points. Institutions are also expected to assess potential effects on liquidity, funding conditions and broader economic indicators such as GDP and unemployment.

Customized Risk Assessments And Supervisor Collaboration

This methodology allows banks to submit risk assessments based on their own exposures and operational structures. The approach is intended to help supervisors understand how geopolitical events could affect institutions differently and to support discussions between banks and regulators on risk management and contingency planning.

Differentiated Vulnerabilities Across Countries

A joint report by the ECB and the European Systemic Risk Board indicates that countries respond differently to geopolitical shocks. The Russian invasion of Ukraine led to higher energy prices and inflation across Europe, prompting central banks to raise interest rates. Belgium, Italy, the Netherlands, Greece and Austria experienced increases in borrowing costs and lower investor confidence. Germany, France and Portugal recorded more moderate changes, while Spain, Malta, Latvia and Finland showed intermediate levels of exposure.

Conclusion

The geopolitical stress tests will not immediately lead to additional capital requirements for banks. Their results will feed into the Supervisory Review and Evaluation Process (SREP). ECB supervisors may use the findings when assessing capital adequacy, risk management practices and operational resilience at individual institutions.

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