Greece just announced a new tax it will add for cruise ship passengers to visit Mykonos and Santorini, Greece.
The nation's Prime Minister, Kyriakos Mitsotakis, announced the new tax on Sunday.
During the busy, peak summer months, cruise ship passengers will be taxed a $22 (20 euro) levy.
Mitsotakis explained that the levy seeks to combat over-tourism on these popular islands, and only for the peak season.
"Greece does not have a structural over-tourism problem ... Some of its destinations have a significant issue during certain weeks or months of the year, which we need to deal with," he explained.
"Cruise shipping has burdened Santorini and Mykonos and this is why we are proceeding with interventions."
According to Mitsotakis, the cruise fee will be highest in Santorini and Mykonos, being raised every period.
Additionally, the government will begin to limit the number of cruise ships allowed to dock at these islands during peak season.
The new tax will be implemented by the summer of 2025.
Santorini and Mykonos host millions of cruise ship passengers a year
Santorini and Mykonos are the nation's most popular tourist islands, especially for cruise ships.
The volcanic island of Santorini is home to some of the most beautiful beaches in the world, while Mykonos is well-known for its elegant architecture and views.
Santorini saw 800 cruise ships in 2023, with a combined statistic of 1.3 million visitors onboard.
It is the most popular cruise destination in Greece, and during the summer months, hosts over 17,000 cruise ship visitors arrive a day.
For the small island with a population of just 15,500, that number of tourists threatens the local infrastructure.
Beginning in 2025, Santorini will also cap the number of cruise ship passengers allowed to visit at 8,000 per day.
Prime Minister Mitsotakis said that part of the revenue from the cruise ship levy will be returned to local communities to invest in and support local infrastructure.
The Greek government is imposing regulations to combat over-tourism
To regulate the arrival of cruise ships, the Greek government will also impose a digital berth allocation system at ports. The system will spread out ship arrivals to prevent overcrowding from multiple vessels arriving simultaneously.
The allocation will handle popular destinations at peak times, considering criteria such as ship size, environmentally friendly vessels, and the length of the stay on the island.
To prevent cruisers from rushing between the port and tours, ships staying longer will be prioritized in the system.
Mitsotakis also announced that Greece must protect the environment and tackle water shortages on its popular tourist islands.
New taxes and fees don't just apply to cruisers on the sea—Greece is also raising the lodging tax.
During the peak tourist months between April and October, hotels and short-term rentals will see an increase in fees and limitations.
Greece's economy relies on tourism, with a revenue of about 20 billion euros in 2023 supported by 31 million tourist arrivals that year.
Despite the economic influence tourism has on the economy, Greece has begun to follow in the footsteps of other cruise ports evaluating the impact of cruise ships on their region.
Especially as cruising gains popularity, and passenger numbers surpass those pre-pandemic, many popular tourist spots are looking at the effects of overtourism.
Protests in Santorini, Venice, and Barcelona have made the news recently, as locals call for limits on tourism.
Royal Caribbean responds to tourism concerns
Michael Bayley, Royal Caribbean President and CEO, recently responded to concerns about overtourism from cruise ships.
During a Q&A session onboard the Ultimate World Cruise, he explained that cruise ships are often the targets of anti-tourism campaigns because of misinformation.
"Sometimes, cruise ships have a target based upon very little information or misinformation...I think it's incumbent on us to improve as an industry, and as a company, our communication over the impact, both positive and negative, on communities," Bayley said.
While he acknowledged certain concerns tourist areas have, he sought to highlight some of the underestimated benefits cruise ships bring to the tourism industry.
"There's always two sides to a coin," he argued. "And... there are some incredibly positive attributes that come from our business."
Port fees and other additional costs
While a Royal Caribbean cruise fare often includes the basics of dining, accommodations, port stops, and activities, extra costs can also raise your final bill.
Port fees and other taxes, for instance, can be a surprising addition to the final cost of a cruise.
Royal Caribbean recently chose to add fees and taxes to its cruise prices.
Cruisers can't avoid fees like this new Greece tax, as they're imposed by the countries and ports ships visit.
The cruise lines must simply pass these on to the passenger.