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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.

Cyprus Tech Sector Propels Economic Growth and Reshapes Talent Landscape

Robust Economic Expansion

At the recent TechIsland Summit, Christophoros Anayiotos, Head of Deal Advisory at KPMG Cyprus, delivered a compelling assessment of the island’s burgeoning tech ecosystem. The 2024 report highlights that the technology sector now contributes 16% of Cyprus’ total Gross Value Added (GVA), up from 12.6% in the previous year. Overall, the sector’s economic impact is estimated at €8.5 billion, with direct contributions of €4.7 billion and an additional €3.8 billion generated indirectly.

Sectoral Contributions and Productivity

Using the Leontief Input-Output Model, the study covers key areas including ICT, professional scientific and technical activities, as well as tech-driven financial and insurance services. Notably, the ICT segment itself delivers €3.4 billion in direct GVA, while professional services and financial operations contribute €840 million and €505 million respectively. This horizontal spread of technological influence underscores the industry’s pivotal role in driving multifaceted business growth.

Resilience During Economic Downturns

Even amid challenging economic conditions, the tech sector has demonstrated remarkable resilience. In the pandemic-stricken year of 2020, while the broader Cypriot economy contracted by 3%, the ICT sector experienced a robust growth rate of 21%. This momentum accelerated further to a striking 38% growth in 2021, reinforcing technology’s role as a stabilizing economic force.

Divergent Trends in Employment

Anayiotos’ analysis reveals that the tech sector now sustains over 62,000 full-time equivalent jobs in Cyprus, with 45,900 direct and 16,300 indirect roles. For every €1 million in increased sector revenue, approximately 13 jobs are generated. Despite the overall employment surge, there has been a significant shift in workforce composition. In 2015, Cypriot nationals comprised 88% of ICT employees; by 2024, this figure dropped to 50%, with non-EU nationals accounting for 42% and other EU citizens 8% of the workforce.

Cyprus as an EU Leader in ICT

Cyprus now holds a prominent place in the EU, ranking second in the EU27 for ICT’s share of national GVA at 11.4%, a notable rise from 9.4% in 2023. Furthermore, the island leads the bloc in ICT GVA growth, posting a remarkable 347% increase between 2015 and 2024. With a top-five ranking in GVA per ICT employee—whereby each contributes approximately €130,000, compared to the EU average of €116,000—the country’s technology workforce has expanded at an annual growth rate of 12.1%, from 9,300 in 2015 to 26,000 in 2024.

Strategic Imperatives for Future Growth

Anayiotos emphasizes the need for strategic enhancements to sustain this expansion. Key recommendations include improving air connectivity, joining the Schengen Area to boost mobility, and attracting more international banking institutions. Additionally, introducing tax incentives designed to favor stock options is considered crucial in luring and retaining skilled talent. Addressing the limited capacity in private education is also vital to accommodating professionals relocating with families.

Investing in Talent and Digital Transformation

Looking forward, investments in education and digital upskilling remain paramount. There is a clear call for a national initiative aimed at promoting STEM careers, elevating the digital skills of both students and educators, and accelerating the digital transformation of public services. Moreover, streamlining legal procedures will be critical to improving the overall business climate and competitiveness.

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