It’s not the first time Airbnb—and short‑term rentals more broadly—have been targeted. High rents, a shortage of decent, available housing, and thousands of shuttered apartments inevitably push citizens towards protest.
In a society feeling the squeeze of persistent price rises in essential goods, it’s natural to look for causes and apportion blame. Unsurprisingly, those who don’t list properties on Airbnb, Booking, or other short‑term rental platforms often accuse them of contributing to these pressures.
Yet the strongest criticism of short‑term rentals doesn’t come only—or even mainly—from residents. It also comes from tourism professionals.
The positives of Airbnb
Despite the criticism, Airbnb has undeniable advantages. Hoteliers’ opposition is understandable—a clear clash of interests—given that many travellers now prefer the privacy and comforts of a self‑contained flat over a standard hotel room.
This hosting model quickly found supporters:
- Owners who invested in renovations and upgrades, seeking additional income.
- Professional managers who built full‑service companies and created new jobs.
- Guests who embraced the idea of a complete, home‑style space for their holidays.
Inevitably, this growth impacted hotel turnover and sparked strong reactions.
Hotels versus Airbnb
Recently, the Association of Hoteliers of Crete sent a letter to the Prime Minister, Kyriakos Mitsotakis, requesting restrictions on short‑term rentals across the entire island.
Hoteliers argue there is uncontrolled expansion of short‑term rentals, which, according to INSETE (the Institute of the Greek Tourism Confederation), account for roughly 14% of accommodation in Greece.
Their request proposes horizontal, restrictive measures applied across Crete, with the housing crisis and uneven distribution of tourism as the core arguments.
What the local Trade Association said
Tourism affects far more than accommodation: it directly influences retail and food‑and‑drink businesses.
The Hersonissos Trade Association rejected the hoteliers’ claim, arguing that the greatest harm to the wider tourism economy has been caused by holiday packages that include not only accommodation but also meals, drinks, and activities—the familiar “all‑inclusive” model.
What is all‑inclusive?
An all‑inclusive holiday is a package that may include three meals, snacks, soft drinks, alcohol, and activities or entertainment, such as an on‑site gym or hair salon, water sports, theatre, and more.
With this type of package, a tourist is less likely to choose a local taverna for dinner and will instead remain within the hotel. As a result, spending circulates within the hotel, rather than being distributed across the surrounding area and local businesses.
For travellers, there is clear predictability: they know upfront how much they will spend on their holiday. However, as is often noted, this model restricts the flow of money into the wider local market.
The Trade Association’s counter‑proposal
According to the Hersonissos Trade Association, the island’s biggest issue isn’t short‑term rentals, but the dominance of all‑inclusive packages in Crete, which sidelines retail and hospitality businesses.
Taking into account travellers’ financial constraints, they proposed:
- Limiting all‑inclusive packages during the peak season, roughly 20 June to 20 August.
- Suspending all‑inclusive packages at weekends to stimulate the local market.
- Retaining all‑inclusive only for families with two or more children.
- Fully abolishing all‑inclusive in adults‑only hotels.
The truth is that all‑inclusive has significantly curtailed the inflow of tourist spending to businesses outside hotels. Thus, while headline figures may show growth in arrivals, many shopkeepers and restaurateurs report falling turnover.
Beyond a commercial dispute
The clash between short‑term rentals and all‑inclusive packages isn’t merely a business spat—it concerns the future of Greek tourism as a whole. The central question is how to balance visitor satisfaction with sustainable local prosperity, ensuring tourism revenue benefits not only hotels but the broader communities that host travellers.
