Welcome to an insightful conversation on the evolving landscape of tourism in Athens, Greece. Today, we’re joined by Katarina Railko, a distinguished expert in hospitality with extensive experience in the travel and tourism industry. Katarina has also made her mark in entertainment and events, often lending her expertise at major expos and conferences. In this interview, we dive into the remarkable transformation of Athens into a global destination, exploring the economic benefits, the strain on historic neighborhoods, the housing crisis fueled by short-term rentals, and the policy responses to overtourism. Join us as Katarina shares her deep insights on balancing growth with sustainability in one of the world’s most iconic cities.
How has Athens evolved from a mere stopover to a standout global destination in recent years?
Athens has undergone a remarkable shift in perception and appeal over the past decade. It used to be seen as just a brief layover for travelers heading to the Greek islands, but now it’s a destination in its own right. This change stems from a renewed focus on its unparalleled historical and cultural offerings—think the Acropolis and the Parthenon, but also the vibrant urban culture with modern museums and revitalized public spaces. Marketing campaigns have played a big role, showcasing Athens as a city where ancient history meets contemporary life. Plus, post-COVID travel trends have favored destinations with authenticity and depth, which Athens has in spades. The city’s ability to attract longer stays, rather than just overnight visits, reflects this profound transformation.
What do you believe are the key drivers behind the projected 10 million tourist arrivals in 2025?
Several factors are fueling this surge. First, global interest in cultural and heritage tourism has skyrocketed, and Athens, with its millennia of history, is a natural draw. The Parthenon alone pulled in nearly 4.5 million visitors last year, and that number keeps climbing. Second, improved infrastructure—better airports, public transport, and connectivity—has made the city more accessible. Social media has also amplified its allure, with influencers showcasing hidden gems beyond the typical landmarks. Lastly, Greece’s economic recovery narrative post-financial crisis has positioned Athens as a symbol of resilience, attracting travelers who want to experience and support that comeback story. It’s a perfect storm of accessibility, visibility, and cultural richness.
How has the international view of Athens shifted compared to iconic Greek islands like Santorini or Mykonos?
For a long time, the islands dominated the Greek tourism narrative with their postcard-perfect beaches and whitewashed villages. Athens was just a pitstop en route. But now, travelers see Athens as a destination with equal, if not greater, depth. The city offers a gritty, authentic blend of ancient ruins and modern vibrancy that the islands can’t replicate. While Santorini and Mykonos are still hugely popular for honeymoons and luxury getaways, Athens appeals to those craving history, urban exploration, and a more layered experience. This shift is evident in longer average stays and a growing number of repeat visitors who want to peel back the city’s many historical layers.
Can you paint a picture of how the tourist influx has changed daily life in historic neighborhoods like Plaka?
Plaka, often called the ‘neighborhood of the gods’ due to its location beneath the Acropolis, has been dramatically reshaped by tourism. Its narrow, cobblestone streets, once quiet and community-driven, now buzz with visitors almost year-round. Cafes and shops that once catered to locals are increasingly geared toward tourists, selling souvenirs instead of everyday goods. The charm of Plaka—its Byzantine and Ottoman influences mixed with ancient ruins—is still there, but it’s often drowned out by crowds, especially during peak season. For residents, this means less personal space, more noise, and a sense of losing their neighborhood’s intimate character to a transient population.
What specific struggles do Plaka’s residents face with such high visitor numbers, particularly in peak seasons?
The challenges are intense. With only about 2,000 permanent residents, Plaka can see up to 8,000 tourists in a single day during high season. That kind of volume strains everything—public spaces become overcrowded, infrastructure like roads and utilities gets overtaxed, and even basic errands turn into a slog through throngs of people. There’s also the issue of privacy; locals feel like they’re living in a museum rather than a home. Add to that the rising cost of goods and services driven by tourist demand, and you’ve got a community struggling to maintain its way of life amidst constant disruption.
How does a small community like Plaka manage when daily tourist numbers far exceed the local population?
It’s a tough balancing act. The small population means there’s little buffer to absorb the impact—every resident feels the pressure directly. Some cope by adapting, like opening small businesses to cater to tourists, but others feel pushed out, both culturally and economically. Community cohesion suffers as shared spaces are overtaken by visitors. Local authorities have tried to help with crowd management—think timed entries to certain areas or pedestrian-only zones—but these are band-aid solutions. Many residents rely on personal resilience, carving out routines around tourist peak hours, but it’s not sustainable long-term without more robust intervention.
In what ways has the tourism boom supported Greece’s economic recovery after years of financial hardship?
Tourism has been a lifeline for Greece, especially post-2008 and the eurozone debt crisis. With Athens at the forefront, the influx of visitors has injected billions into the economy through direct spending on hotels, restaurants, and attractions. This revenue has helped stabilize public finances, reduce unemployment, and fund infrastructure projects that were stalled during austerity. Beyond numbers, tourism has restored a sense of national pride and global relevance, positioning Greece as a success story of recovery. It’s not just about money—it’s about rebuilding confidence in the country’s future.
How does the economic boost from tourism weigh against the rising cost of living for Athenians?
While the economic gains are undeniable, they come with a steep price for locals. The tourism boom drives up rents and property prices, especially in central areas like Plaka, where short-term rentals fetch far more than long-term leases. Everyday costs—groceries, dining, services—also rise as businesses cater to tourists with deeper pockets. For many Athenians, particularly those on fixed or modest incomes, this means being priced out of their own neighborhoods. The benefits of tourism often flow to larger businesses or foreign investors, not the average resident, creating a stark disparity between economic growth and personal affordability.
Which sectors or businesses in Athens have seen the biggest gains from this tourism surge?
Hospitality and retail are the clear winners. Hotels, from boutique to luxury, have seen occupancy rates soar, especially in central districts. Restaurants and cafes, particularly those near historic sites, are thriving as tourists seek authentic Greek cuisine. Tour operators and cultural attractions—museums, guided tours of the Acropolis—have also cashed in on the demand for immersive experiences. Additionally, the short-term rental market exploded before the recent freeze, benefiting property owners who converted homes into vacation stays. These sectors have capitalized on Athens’ appeal, often at the expense of more local-oriented businesses like traditional markets or small grocers.
How have short-term rentals impacted housing options for long-term residents in central Athens?
The rise of platforms like Airbnb has turned housing into a crisis in central Athens. With over 12,000 properties listed for short-term stays in 2024, entire buildings have shifted from residential to tourist use. This drastically reduces the pool of available rentals for locals, driving up prices for what’s left. Long-term residents, especially younger people or families, find themselves pushed to the city’s outskirts or unable to afford living near historic areas. It’s not just about cost—it’s about losing community ties as neighborhoods become transient hubs rather than stable homes.
What prompted the Greek government to halt new short-term rental registrations in 2025?
The decision came from mounting pressure over housing scarcity and community displacement. With rents skyrocketing and locals being edged out, the government recognized that unchecked growth of short-term rentals was unsustainable. The freeze, enacted for one year in central Athens, aims to pause the trend and give policymakers time to assess the damage and plan next steps. Public outcry and advocacy from residents’ groups also played a role, as did the broader European conversation about overtourism in cities like Barcelona and Venice. It’s a reactive move to a problem that’s been brewing for years.
Do you believe a one-year freeze on short-term rentals will sufficiently tackle the housing crisis, or are deeper solutions required?
A one-year freeze is a start, but it’s far from a cure. It temporarily slows the bleed of housing stock to tourists, but without addressing the existing 12,000-plus listings, the market remains skewed. Deeper solutions—like zoning laws that limit short-term rentals per building, tax incentives for long-term leases, or caps on rental nights per year—are necessary to restore balance. The freeze buys time, but if it’s not paired with comprehensive policy, the underlying issues of affordability and community erosion will persist. It’s a complex problem that needs a multi-pronged approach.
Can you shed light on the legal challenge before Greece’s Council of State regarding apartment buildings turned into seasonal lodging?
This case is a pivotal moment for Athens. The challenge, currently before Greece’s highest administrative court, targets the conversion of 16 entire apartment buildings in central Athens into short-term tourist accommodations. The argument is that these conversions violate urban zoning laws, which are meant to prioritize residential use in certain areas. It’s not just about legality—it’s about precedent. If successful, this could halt similar developments and force a rethink of how property is used in tourist-heavy zones. It’s a direct response to the hollowing out of neighborhoods, where buildings once full of families now house only transient guests.
How do these legal efforts aim to preserve the social fabric of Athens’ communities?
The core goal is to keep neighborhoods livable for residents, not just marketable for tourists. By challenging mass conversions, these legal actions seek to ensure that central Athens retains a residential character—places where people raise families, build connections, and sustain local culture. Without permanent residents, you lose the soul of a community; it becomes a theme park. These efforts are about safeguarding diversity and stability, ensuring that economic gains from tourism don’t come at the cost of displacing the very people who make Athens a living, breathing city.
What other strategies or policies is the Greek government exploring to address overtourism in Athens?
Beyond the rental freeze and legal challenges, there’s talk of broader measures. Some officials are looking at visitor caps or entry fees for high-traffic sites like the Acropolis, similar to Venice’s model, to manage crowds. There’s also discussion around incentivizing tourism in less-visited areas of Greece to ease pressure on Athens. Urban planning reforms, like stricter licensing for tourist businesses, are on the table to prevent over-commercialization of historic districts. These ideas are still in early stages, but they reflect a growing awareness that overtourism needs a holistic strategy, not just piecemeal fixes.
Looking ahead, what is your forecast for the future of tourism in Athens if these challenges persist?
If the current trajectory continues without stronger intervention, Athens risks becoming a victim of its own success. We could see a city where historic areas are little more than tourist enclaves, with locals pushed out and cultural authenticity eroded. Economically, growth might plateau as visitors seek less crowded, more genuine destinations elsewhere. However, I’m cautiously optimistic. If the government, businesses, and communities collaborate on sustainable policies—balancing visitor numbers with resident needs—Athens could set a global standard for managing overtourism. The city has the potential to preserve its heritage and vibrancy, but it will require bold, forward-thinking action in the coming years.
