The hub of the short-term rental industry
Short Stay Conference Athens 2024 confirmed for another year its role as the most important meeting point for the short term rental, serviced apartments and holiday villas sector in Greece.
The two-day conference was held with great success on February 9 & 10, at the Ancient Eleonas Conference Centre, bringing together leading professionals and companies in the field.
The new tax regulation and short-term rentals in the spotlight
One of the most discussed topics of the Short Stay Conference Athens 2024 was the taxation of short term rentals, especially after the recent changes in the relevant law. The interest of the delegates was intense, as the new regulation affects thousands of property owners and managers operating on platforms such as Airbnb and Booking.
In a video greeting, Deputy Minister of Finance Harris Theocharis acknowledged that short-term renting is now an important source of income for thousands of Greeks. He presented the main points of the new tax regulation for short-term rentals, emphasizing the upcoming reforms to simplify procedures.
The Deputy Minister stressed that the government’s next steps include measures aimed at:
- simplifying transactions for benefits and rent,
- reducing bureaucracy,
- and reducing tax evasion, which he described as an “anti-social act”.
These developments directly affect those involved in the management of short-term rental properties, underlining the importance of awareness and compliance with the new legal framework.
Tax issues
Tax clarifications from the Hellenic Tax Administration on the new framework for short-term rentals.
In the context of the Short Stay Conference Athens 2024, special attention was given to the tax clarifications regarding the new legislation on short-term rentals.
The representatives of the Governor of AADE, Angelos Kouros and Apostolos Boutos, gave answers to basic questions that have arisen regarding the ambiguities of the new tax framework.
During their presentation:
- They acknowledged the need for immediate clarification
- They informed the public that an official circular of the Hellenic Revenue Service is to be issued soon, which will define precisely the obligations of the owners
Of particular relief was the clarification that individuals leasing up to two properties through short-term rentals will not be subject to the visitor’s tax, which is an additional tax for tourism professionals.
This intervention was crucial for the correct interpretation of the new tax law, providing a clear picture to Airbnb, tourist villa and serviced apartment owners and managers seeking compliance with their tax obligations without unnecessary burdens.
Organising tax and accounting obligations in short-term leasing: what every manager needs to know
The discussion on the new tax policy on short-term rentals was concluded at the Short Stay Conference Athens 2024 with a substantial and practical exchange of views on stage, between Christina Bougioukou, representative of the accounting firm KRS, and Ioanna Kellarakou, owner of the management company Kalypso Hospitality.
The discussion focused on tax and accounting organization strategies, providing useful guidance to owners and managers of Airbnb accommodations, tourist villas and serviced apartments who seek to comply with the new tax requirements and operate transparently and efficiently.
During their pitch, the two professionals analysed:
- The role played by proper bookkeeping and document keeping in an environment of constant change
- The need to create an accounting plan for the whole year, adapted to seasonal fluctuations in income
- The ways in which a manager can optimise invoicing, payment and income/expense recording processes
Particular reference was made to the importance of working with a qualified accountant who knows the specifics of the industry, as well as the choices of technological tools to automate accounting processes.
This section has been a practical guide for all those looking for ways to adapt to the new tax framework without being burdened with unnecessary bureaucracy or fines. It was clear that professional short-term rental management also requires a sound tax strategy.
New European legislation on short-term rental platforms: what changes for professionals in Greece
At the Short Stay Conference Athens 2024, apart from tax issues at national level, special emphasis was placed on the new European legislation being prepared by the European Union regarding the regulation of short term rentals and transparency in transactions through platforms such as Airbnb, Booking and Expedia.
Acting Secretary General of the European Holiday Home Association (EHHA), Viktorija Molnar, together with Expedia‘s PR Manager , Iban Rabasa, the President of STAMA Greece, Nassos Gavalas, and the President of the Italian Association of Short Term Accommodation Managers(AIGAB), Marco Celani, presented the main guidelines of the forthcoming EU regulation.
This new legislation:
- It will require full transparency in transactions between hosts and platforms
- Provide for harmonised recording of rental and booking data
- Aims to create a common European framework for all Member States, ensuring a balance between innovation, competition and social responsibility
The interlocutors stressed that industry professionals in Greece should be actively present in the European collective bodies involved in shaping the new policy. Only through collective pressure and participation in associations such as EHHA and Stama Greece, can the voices of short-term rental owners and managers be heard in Brussels.
The need for a sustainable and realistic regulatory framework at European level is now urgent, as the development of the sector has direct social, economic and political implications. As underlined at the conference, collective representation and international cooperation are critical factors for the future of the market.
The advantages of short-term leasing and its implications
Benefits of short-term leasing for local communities and the economy – EEA intervention
In the context of the Short Stay Conference Athens 2024, the President of the Athens Professional Chamber of Commerce (ACA), Yannis Hadjitheodosiou, spoke clearly in favour of the benefits of short-term rentals for both tourism development and the local economy.
Focusing on the case of Athens, Mr. Hadjitheodosiou highlighted the important role that the industry plays in increasing the tourist flow, offering more accommodation options to the city’s visitors. The variety of accommodation through platforms such as Airbnb and Booking has given a boost to urban tourism, enhancing accessibility to areas that were previously not accommodation destinations.
At the same time, he underlined the direct positive impact of short-term rentals on small and medium-sized entrepreneurship. Increased tourist traffic helps to stimulate the local market, boosting shops, restaurants, services and commercial activities in neighbourhoods with a strong presence of short-term rental accommodation.
The industry, according to the president of the EAA:
- It supports thousands of small and medium-sized entrepreneurs
- Upgrades areas through renovation and investment in construction
- Contributes to the fiscal support of the state, as the annual turnover of the sector is close to 3.5 billion euros, generating significant revenues for the public coffers
- In addition, the development of short-term renting has contributed to improving the image of run-down areas through building renovations, improving urban aesthetics and stimulating activity in abandoned neighbourhoods.
Mr. Hadjitheodosiou did not fail, however, to mention the existing housing problem observed in many urban areas, mainly due to the reduction in the availability of properties for long-term rental. He stressed the need to strike a balance between tourism development and social cohesion, proposing realistic and targeted policies.
Proposals to solve the housing shortage: Focus on tax policy and the use of idle property
The housing problem in Greece, especially in large urban areas such as Athens, was one of the main topics of discussion at the Short Stay Conference Athens 2024, with a special section dedicated to the search for solutions to the shortage of primary housing.
The President of POMIDA, Stratos Paradias, together with the Director of Stama Greece, Stathis Karopoulos, presented substantial and feasible proposals for improving the availability of housing for long-term rental, but also for regulating the relationship between short-term and long-term rental.
POMIDA: Proposal for tax incentives for owners of dormant properties
Mr. Paradias referred to the proposal that POMIDA has already submitted to the government, according to which:
- Those properties that remained closed throughout 2023 and are estimated to remain unused in the coming years
- Could qualify for a special income tax exemption program if made available for long-term leasing
- This proposal applies not only to privately owned closed homes, but also to accommodation available on short term rentals, with the aim of giving more housing options to residents looking for affordable primary housing.
- Addressing the imbalance in the housing market
As Mr. Paradias noted, as the supply of housing in the long-term rental market increases, rent rationalization will gradually occur. Instead of selecting tenants, landlords will compete to attract quality and consistent tenants, thus creating a healthier supply and demand mechanism.
POMIDA ‘s proposal advocates a pragmatic approach to housing policy, without penalising the short-term rental sector, but encouraging the parallel existence and strengthening of long-term housing through incentives rather than restrictions.
The new trends and how they affect short-term rental
Travel will continue to play a leading role in 2024, as revealed by the major travel platforms Booking.com and Expedia.com. Especially when it comes to short-term rentals, Athens, Crete, Rhodes and Corfu are once again attracting the interest of travelers booking through the platforms this year, while the moderation in bookings for Mykonos and Santorini continues in 2024.
Airbnb accommodation on these two islands saw a decrease in occupancy rates last year by 4.5% in Mykonos and by 6% in Santorini, but with prices following a reverse trend, at +11% in Mykonos and +10% in Santorini.
Based on the data presented in the Short Stay Conference Athens 2024 by Tasos Efthymiou, area manager for Greece and Cyprus of Booking.com, the classic European markets are the ones that are interested in Greece this year(British, Germans, Italians, Austrians, Scandinavians, etc.).
On the other hand, for Vrbo, Expedia‘s short-term rentals platform, which has more appeal in the US market, the US is the number one country booking Greece, followed by the UK, Germany, France and Canada, according to Ciaran Lawlor and Sinead Lim of Expedia.
Jason Anastasinis, Managing Director of the short term rental property platform Travelstaytion, described the importance for every Property Manager of designing a comprehensive Brand Identity, the adoption of specific operating standards, the use of targeted synergies for the complete visitor experience, and the selection of appropriate distribution channels.
Listening to the global trend for more sustainable travel, the Short Stay Conference Athens 2024 also addressed the issue of sustainability in the short-term rental industry. Dr. Ioannis Pappas, CEO of Green Evolution, explained the ways in which a property can adopt more sustainable practices.
The short-term rental market in Greece
Significant growth in off-season travel was recorded in figures presented by Sally Henry of Key Data, a company specialising in providing short-term rental data.
This first quarter of the year, traditionally the lowest in demand of the whole year, the Peloponnese and Crete are seeing much increased demand. Last year Greece followed the path of Europe in terms of the short-term rental market.
Specifically, the occupancy rate of accommodation moved to 36%, compared to 31% in 2022, while in Europe the average occupancy rate in 2023 reached 43% (compared to 40% in 2022).
More from 130.000 active short term rental property listings on Airbnb currently exist in Greece, an increase of 19% compared to January 2023, according to data presented by Maria Flores Portillo, EMEA managing director of Beyond, a company that provides dynamic pricing solutions for short term rental properties.
As far as 2024 is concerned, based on bookings to date and compared to the booking picture in February 2023, Beyond has recorded a 16% increase in revenue per available accommodation, an indicator that combines the price of the accommodation with its occupancy rate.
Artificial intelligence and new technologies
The new technologies that are now available to owners and managers of short term rental properties were extensively discussed at the Short Stay Conference Athens 2024. Among other things, artificial intelligence was mentioned in many cases, with platforms and tools alike incorporating AI into their operations.
At the same time, there are a number of tools that can help small and medium-sized professionals in the hospitality industry to upgrade their accommodation, organise their daily processes more efficiently, and respond more directly to any problems and setbacks.
As Alexandros Karavitis, co-founder and CEO of Short Stay Conference Athens 2024, said at the Short Stay Conference Athens 2024 Hosthub, AI can help short-term rental accommodation owners with suggestions on how to decorate spaces, create descriptions of the photos they post on their platforms, websites or social media, respond to customer reviews, analyze reviews while suggesting improvements to owners, automatically respond to customers and give customers suggestions that will improve their experience.
Thanasis Pilionis, CEO of Radefy, referred to the technological revolution that has taken place in the hospitality industry and presented its contactless solutions and its new Guest Experience Application which it calls GEA.
At the same time, management tools (PMS) such as those of Avantio, Hostaway and Loggia, pricing tools such as those of PriceLabs and Beyond, management strategies and sales techniques from UPSTREET and etouri, but also applications for better customer experience such as that of Tourmie. Also, Ergo Insurance presented the ERGO My Home Bnb program and the president of the Association of Deworming & Municipalities and Fumigation Association of Greece George Lambrou presented the ways in which an accommodation can ensure hygienic conditions for its guests.
But also new markets
Beyond the established tourist markets, ShortStay 2024 also analysed opportunities to reach new markets, such as digital nomads and travellers with some kind of disability.
Dimitris Tselios and the Nomad365 team presented the certification for accommodation suitable for digital nomads, while Dimitris Kontopidis of Greece no Limits explained the modifications that can be made to an accommodation in order to make it suitable for people with disabilities.
Greece STAY Awards ceremony
The conference concluded with the ceremony of the Greece Stay Awards, the first awards in the short-term rental sector and the announcement of the second conference to be held in Chania in the autumn.
