The Greek government on Monday presented a new national spatial planning framework for tourism, ostensibly aimed at reshaping how tourism development is managed across the country vis-a-vis the all-important sector, with a particular focus on islands, coastal zones and environmentally sensitive areas.
The plan, unveiled this week by the relevant tourism and environment & Energy ministers, respectively, introduces stricter land-use rules intended to curb uncontrolled construction, better protect coastlines and steer investment toward more sustainable forms of tourism.
The reform comes amid heightened media attention over so-called overtourism and resulting pressure on infrastructure, as well as widespread and ubiquitous disputes over land use, particularly on extremely popular holiday islands such as Mykonos, Santorini and Paros. Over the past year, international and local media have highlighted concerns about illegal construction, water shortages, housing pressures linked to short-term rentals and tensions over balancing tourism growth and environmental protection across the east Mediterranean country.
According to the government, the new framework seeks to balance economic growth with environmental sustainability and climate resilience, while creating clearer nationwide rules for where and under what conditions tourism projects can be developed.
Five tourism zones for the first time
For the first time, Greece will divide the country into five tourism-development categories based on factors including tourism intensity, geography and environmental sensitivity, namely:
- Controlled Development Areas
- Developed Areas
- Developing Areas
- Early-Stage Development Areas
- Areas for Special Tourism Development
Officials said the classification system is designed to prevent further saturation in heavily developed destinations while encouraging investment in less-visited regions and alternative tourism models beyond the traditional “sun and sea” economy.
A special emphasis is placed on islands, as smaller islands will face stricter construction and capacity limits aimed at preserving landscapes and infrastructure sustainability.
Limits on hotel size, coastal construction
Among the most notable measures are caps on the number of beds allowed in new hotel developments on islands, depending on island size and development pressure. In the most environmentally burdened areas, new tourist accommodations will be limited to 100 beds, while larger islands may allow developments of up to 350 beds under stricter oversight.
The framework also introduces tougher requirements for building hotels outside urban planning zones. Minimum plot sizes will range from 8 to 16 hectares depending on the category of the area.
A major provision concerns coastal protection, as the first 25 meters from the shoreline will be placed under full protection status, banning new construction and landscaping works except for public-interest infrastructure such as accessibility projects and emergency access routes.
Stronger protections for Natura zones and historic areas
The plan includes enhanced safeguards for protected Natura 2000 areas, archaeological sites, traditional settlements and historic locations. The government said tourism projects in sensitive zones will face stricter environmental assessments and carrying-capacity studies.
The framework also seeks to reduce dispersed construction outside urban planning boundaries — a longstanding issue in Greece that has frequently triggered legal disputes and criticism from environmental groups.
Short-term rental rules under discussion
The proposal further opens the door to tighter regulation of short-term rental platforms such as Airbnb in areas experiencing excessive tourism pressure or housing shortages.
Possible measures include:
- restrictions on new short-term rental supply,
- limits on annual rental duration,
- geographic exclusion zones,
- and rules tying short-term rentals to primary residences.
The debate over Airbnb-style rentals has intensified in Athens and on major islands, where rising housing costs and seasonal tourism demand have increasingly squeezed local residents. At the same time, the short-term rental sector has added much-needed income to the pockets of tens of thousands of Greeks and upgraded entire urban neighborhoods and more remote destinations.
Existing permits unaffected
Government officials stressed that projects already licensed or currently undergoing environmental approval procedures will not be affected retroactively.
Most of the framework remains similar to the draft released for public consultation in July 2024, though ministers said additional restrictions were added following feedback from urban planners, environmental experts and local authorities. The stricter provisions particularly target island protection, Natura zones and the limitation of scattered off-plan development.
The proposal now enters the next phase of institutional approval and alignment with regional and local urban-planning schemes.
