While Greece’s short-term rental market (Airbnb) is growing overall, this summer the country’s most iconic tourist destinations Mykonos and Santorini show signs of decline. Despite rising demand nationwide, these popular islands are experiencing a noticeable drop, worrying stakeholders.

Road Tourism on the Rise

Interestingly, road tourism is gaining momentum. Northern Greece, particularly Halkidiki, is enjoying increased visitor numbers, largely driven by tourists from Central Europe—especially Germany, the UK, Poland, the Netherlands, and Italy. This shift hints at a broader change in travel behavior and preferences among European travelers.

The Island Blues: Airbnb in Decline

Santorini has felt the brunt of recent geological activity. A recent earthquake unsettled both residents and tourists, leaving its mark on the island’s short-term rental market. This summer, demand has dropped significantly compared to last year, with international arrivals reportedly down by 25–30% from 2024 levels.

Mykonos, meanwhile, faces a third consecutive summer of disappointing figures. The drop is particularly evident in the luxury rental market, where prices for high-end villas and accommodations have tumbled compared to their 2022 peaks. The island, long associated with glamor and exclusivity, appears to be losing its luster.

Industry insiders point to a crucial factor behind this downward trend: Greece is no longer perceived as a budget-friendly destination. “The days of cheap Greek holidays are behind us,” one expert commented. Rising taxes and operational costs have eroded what was once a key competitive advantage for the country’s tourism industry.

A Broader Pattern of Decline

The drop in demand isn’t limited to Mykonos and Santorini—though both are experiencing a contraction of over 20%, even in the peak month of July. Other destinations such as Crete, Rhodes, Corfu, and parts of the Peloponnese are also reporting declines, averaging around 15%.

Of particular concern is Corfu, where bookings have underperformed expectations—even for the typically bustling month of August. Local businesses and property owners are now pinning their hopes on an extended tourist season into October in a bid to recover lost ground.