How Is Santorini Handling the Impact of Rising Tourism and Housing Costs

Saturday, February 8, 2025

Santorini, a picturesque Greek island in the Aegean Sea, sits southeast of the mainland. The island continues to experience seismic activity, sparking concerns about its potential impact on its thriving tourism industry. Each year, around 3.4 million travelers visit Santorini, drawn to its breathtaking caldera views and iconic whitewashed villages.

According to the latest 2024 data, air passenger traffic to the island rose by 3.6% in the first eight months of the year, totaling 2,055,372 travelers. Among them, 1,146,696 were international visitors, many drawn to the island’s romantic settings, including the blue-domed rooftops of Imerovigli and the scenic shores of Vlichada Beach.

Beyond air travel, Santorini’s tourism boom is fueled by the cruise industry. In 2023, the island welcomed 800 cruise ships, bringing nearly 1.3 million passengers. On peak days, up to 17,000 cruise visitors disembark, filling the narrow streets of Fira and Oia. The Old Port of Fira alone records approximately 2 million visitors annually, with 1.5 million cable car boardings, while Athinios Port accommodates another 1.5 million travelers each year.

Santorini remains one of Greece’s top cruise destinations, alongside Piraeus and Mykonos, collectively accounting for nearly two-thirds of the country’s cruise traffic. It has also been ranked among the top 25 cruise destinations to explore in 2025.

While tourism serves as the backbone of the local economy, the sheer volume of visitors has sparked growing concerns among Santorini’s 20,000 permanent residents. Pressure on infrastructure, housing affordability, and environmental sustainability has led to calls for stricter management.

The rise of short-term rentals has driven housing prices to unprecedented levels, making it increasingly difficult for locals to find affordable accommodation. At the same time, Santorini’s traditional grape production, a hallmark of its winemaking heritage, has plummeted by nearly 50% over the past two decades, declining at an average rate of 2.7% per year.

A 2019 report from the EU transport committee highlighted the risks posed by unregulated tourism growth, warning that Santorini’s future as a destination could be jeopardized without better management.

In response, authorities have introduced measures to curb overcrowding. A cap on daily cruise arrivals, limiting passenger numbers to 8,000, is set to take effect this year. Additionally, a new cruise passenger levy will be implemented from June 1 to September 30, with disembarking passengers charged €20 per person at Santorini and Mykonos, while arrivals at other Greek ports will pay €5.

Despite these efforts, Santorini’s economy remains deeply dependent on tourism. In August 2024 alone, visitor-generated revenue reached €69.4 million, supporting businesses and local livelihoods.

Recent seismic activity, however, has introduced new uncertainties for the tourism season. A cruise ship originally scheduled to arrive on February 10 has now rerouted to Chania in Crete instead of docking in the Caldera.

As Santorini navigates the challenges of balancing tourism and sustainability, the coming months will be crucial in determining how the island adapts to both environmental and economic pressures.

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