Athens Curbs New Tourism Businesses in Historic Plaka

Athens Mayor Haris Doukas said this week the city plans to restrict new tourism-linked business activity in the historic center, arguing that parts of the capital are reaching “over-saturation.” The proposal is framed as an effort to protect neighborhood character while easing pressure on local infrastructure, after Athens recorded 8 million tourist visits last year.

According to the mayor, the measures would include a broad ban on new short-term rentals, serviced apartments, hotels, and other tourism uses in the Plaka district. Doukas, who took office in 2024, said Athens—home to about 700,000 residents—cannot absorb the current pace of tourism development without negative consequences for daily life and city services.

Doukas also raised the idea of freezing construction permits for new hotels. In describing the approach, he pointed to Barcelona as a reference case for limiting tourism-related expansion, placing Athens among European cities that are trying to balance visitor demand with housing affordability and urban liveability.

Municipal concerns were backed by data showing that overnight stays in short-term rentals in Plaka have doubled since 2018. City officials have linked that trend to mounting strain in the historic center, where tourism activity is concentrated and where residents and local services face the most direct impact.

The mayor’s position drew notable backing from within the tourism industry. Evgenios Vassilikos, the head of the hoteliers’ association, supported the push and also suggested setting a cap on hotel construction, aligning with the municipality’s call to slow additional capacity growth in the city center.

For markets and policymakers, the announcement signals a potential shift in how Athens manages tourism-driven investment in its core districts. Any move to halt new short-term rental supply and limit new hotel development would directly affect property owners, developers, and hospitality operators focused on central Athens, while also shaping how the city allocates infrastructure and services in high-traffic areas.

Key details remain unresolved, including the timing of implementation and how broadly the restrictions would apply beyond Plaka. The city has outlined the direction of travel, but the final scope, enforcement approach, and any exemptions have not been specified in the information provided.