Panic in Greece as strict anti-tourist restriction causes chaos

The tourism industry in Greece is showing worrying signs of fatigue with a drop in spending. (Image: Getty)

Greece is a top tourist destination in Europe and in the world, thanks to its climate, beaches, historical sites, hospitality and exchange rates - but the country's latest efforts to curb overtourism has backfired.

The National Bank of Greece forecasted in June that 35 million tourists would visit the country in 2024, an increase of seven percent from 2023 and would be a record-breaking year.

However, tourism revenues are showing signs of fatigue, with new figures released by the Bank of Greece on Monday indicating a decrease in the number of receipts from tourism for the month of August. 

It witnessed a decrease of 1.8 percent compared to the corresponding month of 2023, while in the eight months since January, August receipts only increased by 3.2 percent compared to the corresponding period last year, according to skai.gr. 

Tourist arrivals in the first eight months of the year, meanwhile, showed an increase of 9.9 percent. 

There has been an increase in the deficit of over £824 million in eight months. (Image: Getty)

Regarding the more general developments in the country’s Current Account Balance, in the eight months there was an increase in the deficit of 989.5 million euros (£824.9 million)  compared to 2023, with a result that it rose to 7.3 billion euros (£6 billion). 

The deficit in the balance of goods increased, due to an increase in importance and the simultaneous decrease in exports. At current prices, exported goods decreased by 2.4 percent and imports increased by 1.9 percent.

In particular, at current prices, exports of goods without fuel showed a decrease of 1.9 percent, while the corresponding imports recorded an increase of 3.6 percent, sparking panic in the country.

The surplus in the services balance widened due to improvement primarily in the travel and other services balances, and, to a lesser extent, in the transport balance. 

In the period January to August 2024, the deficit of the total balance of current transactions and capital, which corresponds to the needs of the economy for financing from abroad, widened in relation to the corresponding period of 2023. It amounted to 7.9 billion euros (£6.6 billion). 

This year, across its islands and mainland, Greece has taken action to address over-tourism. (Image: Getty)

This year, across its islands and mainland, Greece has taken action to address over-tourism in some of its destinations, including Santorini and Mykonos. The country will charge fees for cruise ships to help manage peak tourist seasons and encourage visits to less crowded destinations. Some of the revenue from the tourist tax will be returned to local communities to invest in infrastructure. 

The Prime Minister recently said that the Greek islands are “clearly suffering”. In July, Santorini received 17,000 tourists in one day, with residents asked by a local councillor to limit their movements in an unprecedented announcement. 

According to an Express.co.uk poll, 82 percent of participants would be put off from visiting Europe’s hotspots due to hordes of cruise ship tourists, with 1 percent saying they did not know. 

It will also increase taxes on short-term rentals and ban new licences for such rentals in central Athens. The goal is to increase the housing stock for permanent residents instead of tourists. 

New building permits on Santorini and Mykonos have also been halted until the impact of rapid infrastructure growth on the island can be assessed.