Greece is loved by British tourists, but sun-soaked getaways are said to be having an adverse impact.

21:31, Fri, Dec 26, 2025 Updated: 21:34, Fri, Dec 26, 2025

Woman enjoying the view in Greek fishing harbour

Greece is experiencing a major change (Image: Getty)

Greece is dealing with what has been described as a crisis which could also hit other Mediterranean countries, like Spain. The number of holiday homes in the country, which relies on tourists, exceeds hotel beds. New data suggests that a new record for short-term rentals was set in July, with the number of lets listed on online platforms like Airbnb reaching 245,944, representing a total capacity of more than one million beds.

This is according to data from the Institute of the Greek Tourism Confederation (INSETE). There are thought to be around 900,000 hotel beds in the country. Reports suggest that this is changing the accommodation market, and affecting traditional hotels.

The situation has triggered concern over local housing, with native Greeks fearing negative impacts on accessising properties and rising prices.

An Airbnb logo seen displayed on a phone

The number of beds at holiday lets has increased dramatically in Greece (Image: Getty)

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The hotel bed supply in Spain stands at 1,226,428, according to real state specialists CBRE.

In terms of holiday rentals, the country has an estimated 351,000 properties with 1.75 million beds, according to Terra Meridiana.

Roomonitor reported earlier this year that short-term rentals in Spain are growing ten times faster than hotels, and already offer more beds in many cities.

The country's tourism model has a "profound transformation" as a result, the site added.

Stats suggested that bookings in holiday rentals in the first part of 2024 increased by 13.9%, compared to just 1.3% in hotels.

Crowded streets of Barcelona

Short-term rents in Spain are said to be growing ten times faster than hotels (Image: Getty)

Greece banned registering new tourist rental homes during 2024.

The measure applied only to certain neighbourhoods in Athens, but in 2025 no more licences were to be issued for flats located in areas such as Kolonaki, Koukaki, Pangrati and Exarchia, among others.

Earlier this year, it was confirmed that new Airbnb licenses will remain suspended in central Athens until the end of 2026.

All holiday homes also need to be declared, hefty fines could be issued over illegal ones.

Tax benefits are also available for all those owners who switch their short-term rentals to long-term and permanent ones.

Between January and October this year, the number of inbound travellers increased by 4.4% to 35,261, according to the Bank of Greece. Last year, the figure was 33,788.

The number of travellers from the UK rose by 6.6% to 4,684. The number of people visiting from the US increased by 2.0% to 1,397.