Short-term accommodation rentals offered via online platforms represent a new and rapidly growing economic activity that has attracted significant interest, raising several issues in relation to its economic effects and the need for institutional interventions to regulate its operation. The present report focuses on the case of Greece and provides an economic analysis of recent developments and characteristics of the country’s short-term accommodation sector. 

As a background, the report investigates the multi-dimensional economic effects of short-stay rentals, based on a review of the insights obtained from the extensive recent literature concerning this activity. Furthermore, the report examines in detail the legislative interventions for the regulation of short-stay rentals in Greece, while also providing an overview of the relevant institutional framework and the new regulatory initiatives pursued at the level of the European Union (EU). As the review of the relevant literature shows, the range of potential effects of short-stay rentals is particularly complex and can vary significantly depending on the characteristics of each individual case and the institutional framework for the operation of this market.

The report utilizes recent economic data on short-term accommodation rentals in Greece and the EU. The data, which originate from official sources (Eurostat, European Commission) and include new statistics that became available for the first time in the year 2021, are employed in an original analysis focusing on the case of Greece. The analysis examines the size and evolution of short-term rentals in Greece at the national, regional, and metropolitan level, while also capturing key factors related to the supply and demand for these accommodations in the country

The growth of short-term rental activity in Greece was favored by international trends and technological developments, as well by as certain characteristics in relation to the country’s tourism market, the real estate market and the general conditions relating to the domestic economy, employment, and incomes. From the comparison of the size of the short-term rental sector to the corresponding size of the hotel sector, it appears that, both in the EU and Greece, nights (guest nights) spent at short-term accommodation fluctuate at quite substantial levels in relation to nights spent at hotels and similar accommodation. Prior to the outbreak of the pandemic, short-term rentals seemed to have gained ground, without, however, a notable effect on hotel stays.

In Greece, nights (guest nights) spent in short-term rentals take place mainly at entire accommodations of a size of less than 10 bedplaces. In relation to the spatial distribution of nights, the region of Attica (which encompasses the metropolitan area of Athens) gathers the highest share, followed by the regions of the South Aegean, Crete, the Ionian Islands and Central Macedonia. From a comparison of the spatial distribution of nights spent in short-term rentals and the hotel sector, there is evidence of a clear positive correlation of moderate intensity. Most of the nights spent in short-term rentals concern foreign visitors, who absorb a larger share of the sector’s services in Greece compared to the corresponding proportion in the EU. The majority of visitors come from the EU, followed by visitors from other European countries and America. Accommodation in short-term rentals generally exhibits stronger seasonality in Greece compared to the EU, with the months of July and August gathering a high share of the total nights spent. Compared to the hotel sector, seasonality in short-term rentals appears relatively more pronounced, while significant differences are also observed among the regions and cities of Greece.

According to the European Commission’s Eurobarometer survey data, the supply and use of short-term rentals has seen significant growth, is more widespread in Greece compared to the EU average and concerns all individual categories of suppliers and users in terms of socio-demographic characteristics such as gender, age, and education. Greece is characterised by relatively high development of the more professional form of short-stay accommodation, with a high share of the properties offered having been bought for that purpose. Earning additional income was the main motivation for offering short-term rentals, while the main problems encountered were a lack of clarity about how to provide services legally, a complicated system for paying tax, an unclear impact on the employment status and difficulties with consumers. The higher affordability of short-term rentals booked via platforms is the main reason for their selection by visitors, followed by other advantages in terms of location, facilities, the availability of ratings and reviews and more choice. Accordingly, the disadvantages reported by users were a lack of clarity about who is responsible in the event of a problem, misleading ratings and reviews, misuse of personal data and less trust in the providers of the services offered. The majority of users used short-term rentals on top to their habitual use of services offered via traditional channels, but the percentage of users who had partially or completely replaced traditional tourist accommodation services was also significant.

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executive summary – in english (pdf)

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Το άρθρο No. 83. SHORT-TERM ACCOMMODATION RENTALS IN GREECE (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The Report follows a standard and well-established methodology of categorizing the EU countries among distinct systems of social protection based on some general characteristics concerning the beneficiaries (individuals, households, etc.), the level of transfers dedicated and the mechanism through which they are distributed among the income groups. However, some critical findings do not confirm the validity of this typology between distinct systems. More research on this issue and particularly on the evolved character of social welfare in Greece is certainly needed. 

The main findings of the report at hand can be stressed as follows:

• • • • • • • • • From 2009 and on, social security expenditures have gone through a detailed process of rationalization. This becomes evident if an alternative measure for the comparability of the level of social transfers per capita is introduced, using the Purchase Power Standard indexation. In addition, the reformation of the social security system is reflected in the percentage change and relation between those expenditures which are made after being “means-tested” and “non means-tested”. 
                • Income inequality, on the other hand, is a more complex issue. As the older EUSILC databases have confirmed, income inequality indices for Greece are consistently estimated to be relatively high. Hence, in Chapter 3, after a wide range of different indices are presented, it is concluded that Greece resembles more those countries that have recently become members of the EU and not those older members that form the core of the Union. The qualitative aspects of the former group are better understood if the chronic and persistent low impact of the “other than pensions” social security transfers are further considered
                • In addition, household-type criteria are supposed to play an important role on the relative level of poverty. For example, households with dependent members seem to be faced with higher risks of poverty. Another criterion that is inversely related with household poverty is the age of its members – the higher the age of its members the lower the risk of poverty estimated and vice versa. Furthermore, the Greek SILC database suggests that further attention needs to be paid to single- parent households since the current system of social protection has been unable to track them effectively. Lastly, among all the different types of poor households, a particular type of four membered household –with two adults and two underaged children– is contributing more to poverty than any other type
• Among the rest of the demographic and the socio-economic criteria, employment status seems to have been of importance. Breadwinners working part-time show a relatively high poverty risk even though their percentage share of poverty is very low. In addition, the same holds for the self-employed –both part and full timers– and of course, for the unemployed, whose rate hiked during the period of economic recession
• Lastly, no matter how central and important the issue of poverty is, a result that certainly needs to be further researched is that referring to the fraction of the poor population having a very small – close to zero – percentage of social transfers in their final disposable income. In other words, this result signifies a measure of the potential improvement of the system of social protection and may also provide valuable information for the socio-economic profile of this population

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executive summary – in english (pdf)

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Το άρθρο No. 82. THE EFFECTS OF THE SYSTEM OF SOCIAL PROTECTION ON POVERTY AND INEQUALITY IN GREECE AND THE EU (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The present report examines a variety of aspects related to the adoption and use of a wide range of Information and Communication Technologies (ICT) and e-commerce practices by Greek firms. The new coronavirus pandemic (COVID-19) has highlighted, perhaps more than ever, the critical role that ICT, and especially e-commerce, can play in crisis periods, ensuring firm survival as well as maintaining or restoring the operation of markets and value chains. Given the lack of relevant studies in the Greek context, this research is intended to significantly advance our knowledge on the topic by providing a multi-faceted, systematic, and evidence-based analysis of the issue. 

To this end, comparative analyses are undertaken using both country- and firm-level data to identify digital gaps between Greece and the other EU member-states, as well as among firms of different size, sector and location in Greece. Emphasis is also placed on exploring potential differentials in the digitalization patterns between low- and high-productivity firms. In addition, primarily based on the “Technology, Organization, Environment – TOE” theoretical framework, the report empirically investigates the determinants of e-commerce adoption in Greek firms using proper econometric methods. 

The analyses show that Greece, compared to the EU average, underperforms in most of the examined ICT and e-commerce indicators. Moreover, firm size, location, and labour productivity are found to play a relevant role in exploring and evaluating digital gaps among Greek firms. The econometric results point to specific factors related to the technological infrastructure, human capital, organization-visibility, and external environment of firms as the most significant for their engagement in e-commerce activities. Based on the research findings specific implications and recommendations are presented and discussed being particularly relevant for policy and future research. 

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executive summary – in english (pdf)

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Το άρθρο No. 81. INFORMATION AND COMMUNICATION TECHNOLOGIES AND E-COMMERCE IN GREECE (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

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executive summary – in english (pdf)

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Το άρθρο No. 80. THE MANUFACTURING INDUSTRY IN GREECE: DEVELOPMENTS, PROSPECTS AND POLICY CHALLENGES (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

Shipbuilding is an industry in which Greece has recorded a notable performance in the past, while also possessing crucial conditions for substantial and sustainable growth in the future. However, in recent years, shipbuilding activity in Greece has declined dramatically in terms of both volume and range of shipbuilding projects, while the large shipyards of Skaramagas, Elefsis and Syros have been facing serious problems that significantly impact the country’s entire shipbuilding industry. This situation raises many important questions concerning, among other things, the domestic and international factors that led Greece’s shipbuilding industry to this point and the prospects and conditions for the revival of the country’s large shipyards. 

The above issues are investigated systematically for the first time in the present report, which aims at a multifaceted assessment of the course and prospects of the domestic shipbuilding industry. The approach adopted in the report includes the analysis of the international and European framework of the relevant market, the investigation of the main developments and characteristics of the domestic shipbuilding and repair industry and the identification of its particular advantages and problems, with an emphasis on the large shipyards of Skaramagas, Elefsina and Syros. 

The study incorporates data and information available at the time of writing (April 2017) and includes an executive summary in English (pages 25-29).

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executive summary – in english (pdf)

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Το άρθρο No. 79. DEVELOPMENTS AND PROSPECTS OF THE SHIPBUILDING INDUSTRY IN GREECE (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

The present report evaluates the process of enactment and implementation of specific structural reforms relating to competition, examines the resulting changes in the operation of the relevant markets, and assesses, to the extent possible, the effects on key economic aggregates (prices, employment, and new entries). The legislative interventions considered in the study were part of Greece’s reform programme and represented commitments of the country in the framework of the Memorandums of Economic and Financial Policies. The reforms were pursued, mostly, following recommendations of the OECD, and refer to the sectors of food processing (bakeries), retail trade (retail trade of baby milk, retail trade of dietary supplements and vitamins, and retail sales and offers) and building materials (distribution of cement/dispatching centres).

The methodology adopted includes the review of the legal framework before and after the adoption of the relevant legislative reforms; the assessment of the reforms by use of the OECD competition assessment toolkit; the compilation of tables recording the prior status of regulations as well as the changes resulting from the legislative reforms; and the assessment of the impact with respect to the entry and exit of businesses from the relevant sectors, the creation or loss of jobs, and the prices of the relevant products. With respect to the impact assessment, the methodological approaches employed in the case studies varied, and were selected on the basis of the different types of reforms evaluated, the particular characteristics of the individual markets examined, as well as the availability of statistical data and information.

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executive summary – in english (pdf)

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Το άρθρο No. 78. ASSESSMENT OF SELECTED STRUCTURAL REFORMS REGARDING COMPETITION AND THEIR ECONOMIC IMPACT (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

Over the last decades, international tourism demand has focused on forms of tourism that meet specific incentives. The modern tourist has a variety of incentives; therefore destinations are forced to offer more complex tourist experiences enriched with alternative activities that are differentiated from the classic model of mass tourism. Two of these forms, which particularly dynamic, are cultural tourism and religious tourism.

This report delimits the concepts of cultural and religious tourism and examines the extent of their participation and effects on the Greek tourist market. Initially, an analysis of the theoretical framework of the two forms is carried out and the elements that record their global momentum are summarized. Next, elements of the national tourist product which shape its particular characteristics are presented. Also, an evaluation of the Greek tourist product in terms of its competitiveness according to demand, supply and tourist assets is attempted. Regarding the analysis of cultural and religious tourism as components of the national tourist product, demand and supply are presented at a national level.

The report concludes with proposals that will contribute to the optimal utilization of the cultural and religious resources of the country, which are considered to be important assets of the domestic tourism product and its international competitiveness.

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Το άρθρο No. 77. CULTURAL AND RELIGIOUS TOURISM AS COMPONENTS OF THE NATIONAL TOURIST PRODUCT (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

Since the onset of the economic crisis in 2008, hundreds of thousands of Greeks have left their homeland to seek employment abroad. Unlike past waves of emigration from Greece, the current wave is composed primarily of well-educated youth, whose precious knowledge and skills will be used to the advantage of other countries. Their exodus poses two major policy challenges: first, how to stem the outflow and utilize their knowledge and skills at home and, second, how to harness the enormous potential of Greeks currently abroad to benefit the Greek economy, by mobilizing the diaspora to use their knowledge, skills, talents, resources, and networks in ways which will positively impact the Greek economy. It is on this second set of policy challenges that this book focuses.

OECD data on emigrants living in OECD and other countries reveal the increased educational level of those leaving Greece over the last decade compared to their predecessors. The populations of people born in Greece residing in various destination countries differ markedly, however, in terms of their educational profile. The Greek-born population living in the UK is by far the most educated, with nearly 70% holding a university degree, while only a small proportion of the Greek-born population in Germany has a university degree. Nonetheless, the composition of the Greek-born population living in Germany is changing rapidly, given that in the last decade Germany overtook the US as the number-one destination of Greek emigrants and that the educational level of recent Greek emigrants to Germany greatly exceeds that of Greeks who moved to Germany in previous decades.

The Greek diaspora contains hugely successful business people, professionals, and academics, while its pool of talent is constantly expanding. So far, Greece has done little to utilise its valuable diaspora to the benefit of its economy. The international experience abounds with examples of successful diaspora policies implemented by both developing and developed countries, such as the creation of professional, scientific, and entrepreneurial networks which facilitate transfers of skills and knowledge and promote business development.

For instance, the Talent Network for Innovation of ChileGlobal is composed of highly skilled members of Chile’s diaspora who contribute their time, experience, contacts, knowledge, and skills in order to create innovative Chilean companies and help existing companies to innovate and globalise. The Global Irish Network is composed of very influential Irish and Irish-connected business people based in forty countries who contribute to Irish economic development by promoting foreign direct investment and providing practical assistance to Irish exporters. Indus Entrepreneurs is a network of highly-skilled overseas Indians founded in Silicon Valley in 1992 which organizes hundreds of networking and entrepreneurship events every year and has played a major role in creating high-tech firms in India and stimulating spectacular economic growth.

Greece needs to utilize the potential of its diaspora to enhance economic growth. Drawing on the rich international policy experience, the specific diaspora population segments and individuals that can make a valuable contribution to the Greek economy need to be identified and effectively mobilized, in order to capture the development benefits offered by its exceptionally talented diaspora.

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Το άρθρο No. 76. THE EMIGRATION OF GREEKS AND DIASPORA ENGAGEMENT POLICIES FOR ECONOMIC DEVELOPMENT εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

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Το άρθρο No. 75. GENERAL GOVERNMENT SPENDING REVIEW, 2013-2016: AN ANALYSIS FRAMEWORK FOR FUTURE SPENDING REVIEWS IN GREECE εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.

This book investigates the national strategic goal to make Greece an international transit cargo hub. At the same time, it provides an analysis of the country’s possibilities to more efficiently utilize all the available means of transport, in order to maximize the diffusion of benefits arising from the attainment of this goal across the Greek regions. On the one side, the analysis demonstrates the impacts of economic crisis and the interregional inequalities in various performance measures of the Greek freight transport market per mode and commodity category. On the other side, it shows the prospects for export trade activity and several opportunities arising from investment actions and plans, such as those of COSCO on the basis of Piraeus port. The developments and the crucial role of combined transport are stressed, which can potentially reinforce the geopolitical and economic position and the openness of the country, as an import-export gateway of the European hinterland and a major transit and transhipment cargo hub in South-Eastern Europe and the Eastern Mediterranean.

Special emphasis is given on how Greece can adjust to the current conditions of international trade, logistics and global value chains and can take advantage of the reorganization of global shipping, container terminal and infrastructure supply markets. Among the prerequisites, a greater coordination among the various transport network systems is suggested, in conjunction with other activities, such as those of manufacturing, energy, and information and communication technologies. The completion of the south-north intermodal (road and rail) corridor between Patras-Athens-Thessaloniki up to the northern borders, as well as the intermodal Egnatia corridor linking the Greek-Turkish borders with the Ionian Sea, are considered of utmost importance for promoting the combined (mostly, sea-rail) transport operations and reducing interregional inequalities in the domestic and foreign market access.

An indispensable component of the domestic freight transport system must be a network of logistics parks or hubs (of national and/or regional extent), whose hierarchical structure, number, location and geographical impact area are specified here with use of advanced network analysis techniques. In addition, several structural/institutional reforms are proposed, including the integrated strategic planning and multilevel governance of transport networks and the creation of a national transport and logistics observatory for project-level monitoring and evaluation purposes, based on a set of spatial economic, environmental and social indices.

In order to fill the estimated funding gaps in the transport and logistics sector, attention should be given to innovative financing mechanisms and alternative European funds from such programs as ‘Connecting Europe’, the extension of public-private partnerships and the attraction of foreign investment by companies having an influence on global supply chains. Networking strategies and cooperation schemes between the domestic and foreign transport/logistics hub operators, the development of Greece as a regional energy transit hub and the establishment of special economic zones, such as free trade and export-processing zones, would foster the country’s hubness in the international freight transport and logistics networks. The proposed plans, in combination with the strengthening of the institutional framework for logistics activities, which would contribute considerably to the Greek economy in relation to macroeconomic variables such as GDP and the number of employees in the sectors of road, rail and maritime transport and logistics services are assessed.

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Το άρθρο No. 74. FREIGHT TRANSPORT AND THE DEVELOPMENT OF INTERNATIONAL LOGISTICS HUBS IN GREECE (in Greek) εμφανίστηκε πρώτα στο Κέντρο Προγραμματισμού και Οικονομικών Ερευνών.