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Home » Greece » Greece Travel News » Greece’s Short-Term Rental Industry Takes The Spotlight, Outpacing Hotels In Popularity And Demand As International Travelers Flock To Airbnb And Other Platforms Wednesday, June 4, 2025Greece’s tourism landscape has undergone a dramatic transformation as short-term rentals, led by platforms like Airbnb, have surged in popularity, surpassing traditional hotels in terms of bookings and bed occupancy. With an unprecedented rise in the number of available rental properties, short-term rentals have become the accommodation choice of millions of tourists, outpacing hotels for the first time in the country’s history. This shift marks a monumental change in Greece’s tourism industry, fueled by both international and domestic demand, as visitors increasingly opt for the flexibility and local experience that short-term rentals offer. Despite efforts to regulate the sector, the growth of Airbnb and similar platforms continues to reshape the accommodation market, solidifying their dominant role in Greece’s booming tourism sector.Short-term rentals in Greece have experienced explosive growth in recent years, surpassing hotels in terms of nightly bed occupancy. Entire neighborhoods have been transformed as property owners increasingly cater to tourists, making platforms like Airbnb dominant players in the Greek accommodation market. Despite the government’s efforts to control the expansion, including implementing taxes on property owners attempting to conceal their rental activities, short-term rental services have surged, now offering over one million beds across the country.Hotels in Greece, on the other hand, provide approximately 895,000 beds, a figure that is on track to contribute to what could be another record-breaking tourism year. In 2024, Greece welcomed more than 40.7 million tourists—four times its population—an accomplishment expected to be reached again in 2025. Originally forecast for 2030, these numbers reflect the immense popularity of Greece as a travel destination, with the growth of both hotel accommodations and short-term rentals being driven by this influx of visitors.According to the Hellenic Association of Tourism Enterprises (INSETE), the rapid expansion of short-term rentals has raised concerns about competition for traditional hotels. The figures, however, suggest that Greece’s tourism market is large enough to accommodate both sectors. Vacation rentals now represent more than 50 percent of the country’s accommodation options, with approximately 25 percent of overnight stays being attributed to these rentals. In this sector, Airbnb is the dominant player, having flourished during Greece’s economic crisis from 2010 to 2018. During this period, many citizens were unable to afford long-term rent, which led property owners to repurpose their homes into short-term rental properties for tourists.Starting in October 2024, new regulations will categorize property owners with more than two rental units as professionals. This means they will be subject to stricter taxation and operational requirements. In addition to this, a climate crisis fee will be imposed on the short-term rental sector. Despite these new rules, however, the growth of the short-term rental market has not slowed. By April 2025, the number of available rental properties had risen to 228,000, offering a total of over one million beds. This marks a significant increase from the 936,000 beds available in April 2024, surpassing the one-million-bed milestone earlier than ever before in the season.Foreign visitors account for a modest 8 percent of the demand for short-term rentals, while Greeks themselves make up only 14 percent of the rental market. The majority of Greek short-term rental guests have family properties in rural areas or on islands, contributing to the lower share of domestic demand. Despite this, Greek hotels are also benefiting from the surge in tourism, although some hotel owners argue that short-term rentals have an unfair competitive advantage. Unlike hotels, short-term rentals can avoid strict licensing requirements and operational standards, making it more challenging for hotels to compete.INSETE’s data also reveals impressive growth not only in the number of rental properties and beds but also in occupancy rates, reflecting sustained demand. Despite fears that heat waves might deter tourists, short-term rentals continue to see strong occupancy numbers. By April 2025, Greece’s short-term rental market achieved an occupancy rate of 26 percent, marking a significant 3 percentage point rise from the 23 percent seen in April 2024. This increase in occupancy, despite the growing number of rental options available, signals the enduring appeal of Greece as a travel destination.In the first few months of 2025, foreign visitors accounted for a significant share of bookings in Greece’s short-term rental market. In January, international tourists accounted for 60 percent of bookings, with Greek travelers comprising the other 40 percent. By February, the proportion of foreign visitors rose to 64 percent, while domestic bookings decreased to 36 percent. In March, the share of international guests increased further to 69 percent, leaving just 31 percent for local travelers. with just 14 percent coming from Greek nationals.This shift in demand highlights the increasing preference of international travelers for Greece as a prime vacation spot, as the country continues to attract global attention. The steady rise in bookings from foreign visitors further emphasizes Greece’s role as a top destination in Europe and beyond, securing a continued boom in both the hotel and short-term rental markets.Greece’s tourism sector has seen a groundbreaking shift, with short-term rentals, led by Airbnb, now surpassing hotels in bookings and bed occupancy. This surge marks a major transformation in the nation’s accommodation market.As Greece enters the peak summer tourism season, both the hotel and short-term rental sectors are likely to see further growth, with both types of accommodations working in tandem to meet the needs of a burgeoning number of visitors. The government’s introduction of new regulations is expected to bring more transparency and control to the short-term rental market, ensuring that Greece’s thriving tourism sector can continue to flourish in a sustainable and regulated environment. The balance between short-term rentals and traditional hotels remains crucial as Greece sets its sights on continuing its success as one of the world’s most popular travel destinations.
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