Study on the Assessment of the Regulatory Aspects Affecting The

Home , 9flats, Wimdu

Study on the Assessment of the Regulatory Aspects Affecting the Collaborative Economy in the Tourism Accommodation Sector in the 28 Member States (580/PP/GRO/IMA/15/15111J)

European Commission - Directorate General Internal Market, Industry, Entrepreneurship and SMEs (DG GROW)

Task 4 Market Case study – Athens

This study was carried out for the European Commission by Spark Legal Network and Valdani Vicari & Associati.

Spark Legal Network

Valdani Vicari & Associati

Julia Rzepecka Marius Dragulin Lison Rabuel Ricardas Juskevicius Vilma Kuuliala Timothe Peroz Iva Plasilova Adriana Rodriguez Diaz

DISCLAIMER

By the European Commission, Directorate General Internal Market, Industry, Entrepreneurship and SMEs. The information and views set out in this study are those of the author(s) and do not necessarily reflect the official opinion of the Commission. The Commission does not guarantee the accuracy of the data included in this study. Neither the Commission nor any person acting on the Commission’s behalf may be held responsible for the use which may be made of the information contained therein.

ISBN 978-92-79-84008-1 doi: 10.2873/857237

TABLE OF CONTENT 1 Overview of the accommodation sector...... 5 1.1 Main players in the collaborative economy accommodation sector ...... 6 1.2 Overview of economic development of the collaborative economy accommodation market...... 8 1.3 Overview of applicable local rules and regulatory developments ...... 9 1.4 Summary of indicators ...... 11 2 Real estate and housing availability ...... 13 2.1 Overview of average rental market prices ...... 13 2.2 Overview of number of available properties ...... 17 2.3 Overview of occupancy ...... 19 3 Income and other tourism indicators ...... 22 3.1 Income indicators ...... 22 3.2 Tourism indicators ...... 23 4 Impact on local communities ...... 24 4.1 Development of ancillary services...... 24 4.2 Housing supply changes ...... 24 4.3 Inhabitants’ perception of collaborative short-term rental platforms ...... 25 4.4 Impact on public services ...... 25 5 Future developments ...... 26 6 ANNEX 1: List of interviewees ...... 27 7 ANNEX 2: List of references ...... 27

FIGURES Figure 1: Map of Athens ...... 6 Figure 2: Total available listings in AirBnB, Athens ...... 9 Figure 3: Long-term rent for one bed-room apartments in Athens (in EUR) ...... 14 Figure 4: Average daily rates: AirBnB entire place and hotel room ...... 15 Figure 5 Range of rates per night for properties listed on Airbnb in Athens, October 2014 ...... 16 Figure 7: Occupancy rates AirBnB all listings and hotel room ...... 20 Figure 8: Average cost of a standard double room in Athens from January 2015 to December 2016, by month (in euros) ...... 21 Figure 9: Revenue for Airbnb entire place ...... 22

TABLES Table 1: Summary of indicators ...... 11 Table 2: Average monthly rents for long-term rentals in 2016 ...... 14 Table 3: Average daily and monthly rates for AirBnB listings and hotel room in 2016 ....15 Table 4: Summary overview of average rental market prices for long- and short-term rentals – Athens ...... 16 Table 5: Summary overview of number of available properties – Athens...... 19 Table 6: Summary overview of occupancy – Athens ...... 21 Table 7: Summary overview of income indicators – Athens ...... 23 Table 8: Summary overview of income indicators – Athens ...... 23

Task 4 – Annex 2 - Market Case study – Athens

DEFINITIONS

The key terms used in the case study are defined below. It should be noted that these definitions may differ from the definitions used by the European Commission.

Primary residences: those residences (dwellings) where the person resides more than 180 days per year.

Secondary residences: those residences (dwellings) where the owner spends at least some days per year.

Short-term rental: the rental of an accommodation (room or entire property) on a short- term basis. “Short-term” can be defined by local laws as the maximum period per year during which an accommodation provider can rent out their property or part thereof under specific circumstances.

Long-term rental: the rental of an accommodation (room or entire property) on a long- term basis. “Long-term” can be defined as a period exceeding any short-term threshold imposed by local, regional or national laws (see definition of “short-term rental”).

Vacant property: A residence (dwelling) that is not occupied by their owners or any tenants.

Peer provider: For the purpose of this study, the term is used to designate all providers of short-term rentals on collaborative platforms. In certain cases, where data are available, the text makes a distinction between “peer” and “professional” provider. In this case, “peer provider” refers to individuals who do not conduct such activities on a professional basis, i.e. earning the majority of their income through to short-term rentals.

Conventional dwelling: The term is defined according to its definition on EUROSTAT, namely a room or a suite of rooms and its accessories in a permanent building or structurally separated part thereof which by the way it has been built, rebuilt or converted; it is designed for habitation by one private household all the year round and is not at the time of the census used wholly for non-residential purposes.

Vacant conventional dwelling: According to EUROSTAT, vacant conventional dwellings are conventional dwellings (see above) which have no usual residents at the time of the census but are available to become the principal usual residence of at least one person. Vacant dwellings could be either: seasonally vacant, holiday homes, seasonal workers' quarters, non-seasonally vacant, secondary residences, for rent, for sale, for demolition, or for other purposes.

Task 4 – Annex 2 - Market Case study – Athens

1 Overview of the accommodation sector

This section gives an overview of the short-term accommodation sector in Athens. It describes the main players, and gives an insight of the economic development, and explains the main local rules shaping the short-term rental market.

Facts and figures – Athens

Athens is the capital of Greece, located in the region of Attica. According to the last population census, in 2011, the city had 664,046 inhabitants, which represented 6% of Greece’s total population. The area of Greater Athens, embracing four administrative units, had in 2011, 2,640,701 inhabitants which accounted for a quarter of the country’s population.1

The tourism industry accounts for a great part of the Greek economy. In 2014, the total contribution of travel and tourism to the Greek Gross Domestic Product (GDP) was EUR 29.4 billion, which represented 17.3% of total national GDP.2 Athens has welcomed 4.2 million international arrivals in 2015, the 14th most visited city in Europe.3

The City of Athens is divided into seven municipal districts, and sub-divided into several neighbourhoods.4 The most popular neighbourhoods of Athens are Omonia, Exarhia, Kolonaki, Mets, Koukaki, Plaka, Syntagma, Monastiraki, Psiri, and Thisio. The Mayor of Athens governs the city with a number of Vice Mayors.5 The city of Athens is the core of the area of Greater Athens, which consists of the city of Athens and 34 additional municipalities, grouped in four regional units. The Athens Urban Area is composed of the Greater Athens and Greater Piraeus areas, Athens port.6

The map on the following page shows the city of Athens and its different neighbourhoods.

1 Hellenic Statistical Authority, 2011 Population and Housing Census. Available at: http://www.statistics.gr/en/statistics/- /publication/SAM03/-, accessed on 19/05/2017. 2 World Travel & Tourism Council, The Economic Impact of Travel & Tourism 2015 – Greece, p. 1. 3 International arrivals by city includes visitors from abroad who arrive at the city under review as their first point of entry, and also includes those visitors to the city who arrived in the country via a different point of entry, but then go on to visit the city in question during their trip. Source: Euromonitor International, Top 100 City Destinations Ranking 2017. Available at: http://blog.euromonitor.com/2017/01/top- 100-city-destination-ranking-2017.html, accessed on 19/05/2017. 4 Please note that the division between neighbourhoods is not administrative but informal – made by the inhabitants themselves – so their exact number is not known. 5 City of Athens website, City of Athens organisational structure. Available at: https://www.cityofathens.gr/en/cityofathens, accessed on 19/05/2017. 6 Please note that, unless stated otherwise, this case study only covers the area of the City of Athens. This is due to lack of data and information regarding the situation of the short-term rental market in the outskirts of Athens. An interview with the Athens Convention & Visitors Bureau has confirmed that the quasi-totality of the short-term rental offer was located in the city centre of Athens, which further justifies this focus. Source: Interview with a Athens Convention & Visitors Bureau representative, 23/05/2014. 5

Task 4 – Annex 2 - Market Case study – Athens

Figure 1: Map of Athens

1.1 Main players in the collaborative economy accommodation sector

At national level, the Ministry of Economy, Development and Tourism is responsible for drafting and implementing tourism policy in Greece, along with the Greek National Tourism Organisation.7 The Independent Authority of Public Income, an agency attached to the Ministry of Economy, Development and Tourism, oversees taxation matters, and therefore potential tax issues arising from the development of collaborative economy in the tourism accommodation sector.8 The agency has been made responsible for registering short-term rental properties, according to the new law regulating short-term rentals that passed in May 2017 (see section 1.3).

At local level, the municipality of Athens has a department dedicated to tourism.9 The Athens Convention & Visitors Bureau is the public organisation that promotes tourism in the Greek capital.

The main collaborative short-term rental platforms available in Athens (and elsewhere in Europe) include: AirBnB, Wimdu, 9flats, HomeAway, HomeExchange, GuestToGuest and LoveHomeSwap. There is no platform that is de facto established in Athens or that operates only in Greece, but some are particularly popular among Greek tourists, i.e. Flipkey and Housetrip.10

AirBnB has a strong presence in Greece, and, according to a Hellenic Chamber of Hotels report (2016), is the most important player of the Greek collaborative accommodation sector.11 As of May 2017, there were approximately 3,000 hosts with 4,500 available

7 The Hellenic Chamber of Hotels, 2015, Operation and impact of the sharing economy on the Greek hotel industry, p. 26. 8 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 9 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 10 The Hellenic Chamber of Hotels, 2016, Sharing economy and the tourism and hospitality sector in Greece, p. 17. 11 The Hellenic Chamber of Hotels, 2016, Sharing economy and the tourism and hospitality sector in Greece, p. 17. 6

Task 4 – Annex 2 - Market Case study – Athens

listings.12 Data from AirBnB highlights that, in 2016, the platform has received 243,000 guests in the Greek capital.13

While AirBnB is the largest collaborative short-term rental platform in the city, other platforms are also present. Among European players, Wimdu, a German-born peer-to- peer accommodation rental platform, offers about 600 listings in Athens.14 9flats, a similar German platform, offers 156 listings.15 HomeAway, a US-based competitor of AirBnB featured about 300 listings in Athens.16 GuestToGuest, a French home swapping platform, offers 80 listings in Athens17 (84 with the additional four listings published on HomeExchange, a US-based home swapping platform acquired by GuestToGuest in March 2017).18 Flipkey a US-based vacation rental website, lists 1,328 rentals in Athens.19 Housetrip, a Swiss vacation rental website, offers 1,255 listings.20 Lastly, LoveHomewap, a UK home swapping platform, lists 7 properties in the city.21 In addition, hotel booking websites such as Booking.com or TripAdvisor also include peer-to-peer listings. For instance, TripAdvisor owns the collaborative short-term rental platforms HouseTrip and FlipKey.22

The tourism and hospitality industry also participate in the debate over collaborative economy platforms through representative associations. The Hellenic Chamber of Hotels is active in researching the impact of the collaborative economy in the accommodation sector. The organisation, which represents Greek hospitality businesses, has published two reports on the topic in 201523 and 201624 and has called the Greek government to take policy initiatives in the field. The Hellenic Chamber of Hotels has notably raised concerns over taxation, licensing, safety and security, and impact on neighbourhoods of the collaborative economy in the accommodation sector.25

Another organisation is the Athens – Attica & Argosaronic Hotel Association, which represents the hotel industry and promotes tourism in the Attica region. Although the association is not directly involved in collaborative economy matters, the organisation collects data on hotels in the area that can help assessing the impact of the collaborative economy in the tourism accommodation sector.

Lastly, hotel booking websites, such as Booking.com and Tripadvisor, also offer peer- to-peer short-term rentals. For instance, Booking.com offers 1,131 listings, all of which are

12 AirDNA, Athens, Greece. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. Active listings are listings that are displayed on AirBnB.com on a given date. Active hosts are hosts with at least one property live on the site within the previous 30 days. 13 Airbnb data received on 01/04/2017. Host is defined as an AirBnB community member who rent space on AirBnB. Guest is defined as AirBnB community menbers who stay in AirBnB listings. 14 Snapshot of http://www.wimdu.co.uk/search?utf8=%E2%9C%93&city=Athens&page=1&search_geolocation=1983- athens&checkin_date=&checkout_date=&city=Athens&guests=2 as of 22/05/2017. 15 Snapshot of https://www.9flats.com/athens-athina-attica-greece as of 22/05/2017. 16 Snapshot of https://www.homeaway.co.uk/results/greece/athens/region:4964 as of 22/05/2017. 17 GuestToGuest data received on 24/04/2017. 18 Snapshot of https://www.homeexchange.com/en/search/Athens_Greece as of 22/05/2017. 19 Snapshots of https://www.flipkey.com/sr/athens/ as of 22/05/2017. 20 Snapshot of https://www.housetrip.com/search-rentals/athens/413619 as of 22/05/2017. 21 Snapshot of https://www.lovehomeswap.com/preview?search=athens as of 16/08/2017. 22 Snapshot of https://www.booking.com/searchresults.en-gb.html?aid=304142&label=gen173nr- 1FCAEoggJCAlhYSDNiBW5vcmVmaFCIAQGYAS7CAQp3aW5kb3dzIDEwyAEP2AEB6AEB- AELkgIBeagCAw&sid=3e9f60929e87cd6ada1152ed9584acea&class_interval=1&dest_id=- 814876&dest_type=city&dtdisc=0&group_adults=2&group_children=0&inac=0&index_postcard=0&label_click=undef&mih=0&no_rooms =1&postcard=0&raw_dest_type=city&room1=A%2CA&sb_price_type=total&search_selected=1&src=index&ss=Athens%2C%20Attica%2 C%20Greece&ss_all=0&ss_raw=athens&ssb=empty&sshis=0&unchecked_filter=hoteltype&unchecked_filter=hoteltype&unchecked_filter =hoteltype&unchecked_filter=hoteltype&unchecked_filter=hoteltype&nflt=ht_id%3D201%3Bht_id%3D213%3Bht_id%3D215%3Bht_id% 3D220%3Bht_id%3D222%3Bht_id%3D223%3B&lsf=ht_id%7C223%7C1 as of 22/05/2017. 23 The Hellenic Chamber of Hotels, 2015, Operation and impact of the sharing economy on the Greek hotel industry. 24 The Hellenic Chamber of Hotels, “Sharing Economy and the Tourism and Hospitality Sector in Greece”, 2016. 25 The Hellenic Chamber of Hotels, op. cit., p. 11. 7

Task 4 – Annex 2 - Market Case study – Athens

entire properties.26 Tripadvisor offers 1,400 holiday rentals,27 but its platforms like HouseTrip and FlipKey list up to 3,030 entire properties28.

It is important to note that peer providers can simultaneously use more than one collaborative short-term rental platform to advertise their listing. This leads to a likely double counting of listings on such websites. Due to lack of data available on the number of double listings, the information presented in this case study regarding the total number of listings on collaborative short-term rental platforms (see sub-section 2.2) should be taken as an approximation.

1.2 Overview of economic development of the collaborative economy accommodation market

The tourism and hospitality sector is an important source of economic growth in Greece. In 2015, the tourism industry has generated EUR 14.2 billion revenue, 24% of the national GDP.29 The number of tourists visiting Greece has boomed over the past years30 and it increased by 160% between 2010 and 2016.31 Athens accounts for 16% of international arrivals and 13% of bed nights in the country.32 In 2015, Athens welcomed 4,2 million international arrivals, which constituted an upsurge of 22.6% compared to 2014.33 According to the Hellenic Chamber of Hotels, this important increase can be partly attributed to the political tensions in the Mediterranean region, that redirect tourism from North Africa and Turkey to Greece.34

The peer-to-peer short-term rental market in Athens has grown significantly. For instance, the number of available listings on the main short-term rental platform AirBnB has quasi-doubled between August 2015 and August 2016, as Figure 2 shows.35 In 2015, the Athens neighbourhood of Koukaki was the second fastest-growing destination for AirBnB bookings in Europe (after the neighbourhood of the Capucins in Bordeaux, France), and the fifth in the world.36 According to the Hellenic Chamber of Hotels, Athens has the biggest collaborative accommodation offer in Greece.37

26 Snapshot of https://www.booking.com/ as of 10/08/2017. 27 Snapshot of https://www.tripadvisor.co.uk/ as of 10/08/2017. 28 Snapshot of https://www.flipkey.com/ and https://www.housetrip.com/ as of 09/08/2017. 29 The Guardian, 28 May 2016, “Miracle in Athens as Greek tourism numbers keep growing”. Available at: https://www.theguardian.com/business/2016/may/28/greece-tourism-boom-athens-jobs-growth, accessed on 26/05/2017. 30 The Guardian, 28 May 2016, “Miracle in Athens as Greek tourism numbers keep growing”. Available at: https://www.theguardian.com/business/2016/may/28/greece-tourism-boom-athens-jobs-growth, accessed on 26/05/2017. 31 World Bank, International tourism, Number of arrivals. Available at: http://data.worldbank.org/indicator/ST.INT.ARVL?locations=GR, accessed on 06/06/2017. 32 Bank of Greece data (2016) received from the Athens Convention & Visitors Bureau on 29/05/2017. 33 Euromonitor International, Top 100 City Destinations Ranking 2017. Available at: http://blog.euromonitor.com/2017/01/top-100-city- destination-ranking-2017.html, accessed on 19/05/2017. 34 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 35 AirDNA – Athens Market Report. 36 Airbnb data on Statista.com. Available at: https://www.statista.com/statistics/517133/fastest-growing-destinations-for-airbnb- bookings/, accessed on 19/05/2017. 37 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 8

Task 4 – Annex 2 - Market Case study – Athens

Figure 2: Total available listings in AirBnB, Athens38

4500 4000 3500 3000 2500 2000 1500 1000 500 0

Entire Place Private Room Shared Room

Source: AirDNA

This boom of peer-to-peer short-term rentals can be explained by the low price of short- term rentals. Indeed, AirBnB data from December 2014 shows that Athens was the ninth most affordable European city for AirBnB accommodation, with an average price per night of EUR 50.39 More importantly, according to the Hellenic Chamber of Hotels, the Greek economic crisis has generated a fall in housing prices, making it more profitable for home owners to rent their apartment to tourists rather than to long-term tenants.40 Related to this, the difficult economic situation in Greece has pushed people to earn money through additional means, therefore, there is a tendency to engage further in the collaborative economy by acquiring assets at lower price.41

According to the Athens Convention & Visitors Bureau and the Hellenic Chamber of Hotels, the expansion in short-term rental in Athens has concentrated in the city centre, where the most touristic places are located.42

1.3 Overview of applicable local rules and regulatory developments

This sub-section provides a brief overview of the regulatory framework applied to collaborative short-term rental platforms and to peer-to-peer rentals in Athens. More detailed information regarding this framework is available in Task 1 reports. Note that, while the Task 1 report assesses all relevant regulation passed up to January 2017, this case study expands the timeline to June 2017. Because of the different timelines, some small differences in the regulatory information presented may exist.

Until 2016, there was no legal framework for the short-term rental of property. In 2016, the Greek Parliament passed Law 4446/2016 that allowed property owners to rent out their private homes as short-term holiday rental, provided they met all the following conditions:43

38 The count of Airbnb listings that were advertised for rent during the month or had a booked day in the month. 39 USD 56. Converted om https://sdw.ecb.europa.eu/curConverter.do?sourceAmount=56&sourceCurrency=USD&targetCurrency=EUR&inputDate=26-05- 2017&submitConvert.x=100&submitConvert.y=11 with the exchange rate of 25/05/2017. Source: Airbnb data on Statista.com. Available at: https://www.statista.com/statistics/376789/most-affordable-cities-for-airbnb-accommodation-worldwide/, accessed on 19/05/2017. 40 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 41 The Hellenic Chamber of Hotels, 2016, op. cit., p. 7. 42 Interview with a Athens Convention and Visitors Bureau representative, 23/05/2017. 43 Article 111, Law no. 4446/2016, Government Gazette A240/12.22.2016. 9

Task 4 – Annex 2 - Market Case study – Athens

 Owners must register to the Ministry of Economy, Development and Tourism;  Owners cannot lease more than two properties;  Properties cannot be leased for more than 90 calendar days (60 on islands of fewer than 10,000 inhabitants), unless the lessor’s income from all properties leased is less than 12,000 per year;  The property must have: - A minimum of nine square meters; - Have natural lighting, ventilation and heating; - Be furnished and do not offer any additional services than the provision of linens; - Have received all necessary building permits or have been maintained in accordance with other provisions of Greek law (i.e. l. 3843/2010 (A 62) or article 24 of l. 4014/2011 (A 209). The law foresees a fine of EUR 5,000 in case those conditions were not met. However, according to a Hellenic Chamber of Hotels representative, the government did not enforce the law as it was waiting for the implementing act (see below), but also because it was criticised for being too complex and restrictive of collaborative economy activities.44 In addition, the implementing act, which can facilitate enforcement, therefore addressing some initial criticism, was passed only in 2017 (see below).

In May 2017, the Parliament has passed the implementing act (Law 4472/201745) for the 2016 legislation (mentioned above). The objective was to provide guidance to authorities and targeted stakeholders on how the law will be implemented, thus ensuring more legal clarity and addressing some earlier concerns regarding the law’s complexity. For example, the implementing law defines a short-term lease as “property lease which is concluded via digital platform for a lease term of less than a year.” It allows short-term rentals under the following conditions:

 Property administrators (owners, lessors, sub-lessors or other administrators) must register to the “Register of Short-Term Lease Property”, which is held at the Independent Authority of Public Income. The registration number must be displayed on the platform listing and any other place where the listing is promoted.  Property administrators cannot lease more than two properties.  Properties cannot be leased for more than 90 days (60 on islands of fewer than 10,000 inhabitants), unless the leasor’s income from all properties leased is less than EUR 12,000 per year.  Properties must be furnished and rented out without the provision of any service except for bed linen.  The leasehold is exempt from VAT.  Property administrators are taxed exactly as the owners who rent their houses to inhabitants by the month (i.e. 15% tax for property income up to EUR 12,000 a year, 35% tax for income more than EUR 12,001-35,000 a year and 45% for property income more than EUR 35,001 a year). There can be exceptions by ministerial decision for housing reasons in certain geographical areas where there can be restrictions to short term rentals). As with the 2016 law, the implementing law foresees a fine of EUR 5,000 in case of non-compliance.46

44 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 45 Articles 83 and 84 of Law 4472/2017 Government Gazette 74 A. 46 Translated from the Greek by a Hellenic Chamber of Hotels representative in an email dated from 29/05/2017. 10

Task 4 – Annex 2 - Market Case study – Athens

1.4 Summary of indicators

Table 1 presents an overview of indicators collected throughout the case study. Further information is provided in the following sections.

Table 1: Summary of indicators No. Indicators Categories Value Average market rental One bedroom EUR 282.235 prices for long-term Two bedrooms N/A rentals (2016, Three bedrooms EUR 501.73 monthly)47 All categories N/A A1 AirBnB single room EUR 760 Average market rental AirBnB shared room N/A prices for short-term AirBnB entire home/apartment EUR 1,790 rentals (2016, AirBnB all listing categories EUR 1,764 monthly)48 Hotel room EUR 2,859 Rooms 694 Rooms or residences Entire primary and secondary A2 available for short-term residences or touristic 5,426 rental49 houses50 A3 Number of available residences (housing stock)51 N/A Number of available properties for long-term rental A4 24,844 (vacant dwellings)52 Number of available properties offered through A4 9,855 collaborative short-term rental platforms For short-term rentals 53% (AirBnB) Short-term occupancy For hotel rooms 76.2% A6 rate53 Number of nights peer providers rent out their N/A property (AirBnB - median) For short-term rentals A7 Average length of stay54 N/A (AirBnB)

47 Average rental price for renting an entire property for long-term (more than 90 days) in the urban area considered. The value corresponds to the monthly average rent paid in the last reference year considered in this study. 48 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days) in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30.4167 (in order to represent both months with 30/31 days). Note that the value does not consider potential discounts offered for renting a place for more than a day, even though such discounts are common on collaborative short-term rental platforms and in some hotels. The rooms considered in this indicator can accommodate up to two guests. 49 The sum of all listings, divided by rooms and entire places, found on the EU-level and local collaborative short-term rental platforms considered in this case study. Note that the values do not take into account the possibility of double listings, i.e. the same room or property being listed on multiple collaborative short-term rental platforms. The value, however, excludes listings in hotels, but it may include rooms in hostels or other type of touristic houses (e.g. B&Bs) that operate as businesses. 50 The information presented on collaborative short-term rental platforms does not allow us to distinguish between primary and secondary residences, or between residences (dwellings) and touristic houses. Where available, such distinctions for one or several collaborative short-term rental platforms are indicated in the text, while the indicator value corresponds to the sum of all entire listings available on the EU-level and local collaborative short-term rental platforms considered. 51 The total number of registered residences (dwellings) available in the urban area under study in the latest reference year considered. The number excludes all dwellings serving purposes other than residential ones. 52 The number of vacant residences (dwellings) out of the total number of registered residences (dwellings) in the urban area under study in the latest reference year considered. 53 The occupancy rate refers to the percentage of nights a given property is rented out, out of the total number of nights that property is available. Note that, depending on local laws, properties listed on collaborative short-term rental platforms may be subject to a maximum limit of calendar days of availability. This aspect is considered in the indicator: the ratio refers to the actual occupancy rate (i.e. considering the number of days the listing is available), rather than a theoretical occupancy rate, which assumes availability up to the maximum limit permitted, or up to the maximum number of calendar days per year. 54 The value refers to the average monthly length of rental for a property, either on collaborative short-term rental platforms using AirBnB as a proxy, or in conventional accommodation providers such as hotels. 11

Task 4 – Annex 2 - Market Case study – Athens

No. Indicators Categories Value For hotels or conventional 5.5 accommodation providers AirBnB providers (AirBnB) N/A Income gained through AirBnB providers EUR 5,592 A8 short-term rental (InsideAirBnB, average) activities55 Hotels or conventional N/A accommodation providers Percentage of total provider revenues accounted for by A9 N/A short-term rental activities (AirBnB)56 Number of tourists Total number of tourists on 243,000 using collaborative AirBnB (2016)57 B1 short-term rental Total number of nights spent N/A platforms in AirBnB locations (2016)58 Share of collaborative Nights spent (2016)59 N/A economy users out of

B2 tourists using 60 conventional Number of tourists (2016) 12.15% accommodation services

55 The value refers to the yearly median or average income gained from the rental of an average listing on collaborative short-term rental platforms using AirBnB as a proxy, or for an average room rented via a conventional accommodation provider. Note that for collaborative short-term platforms, various sources are indicated, so as to provide a more impartial value for this indicator. 56 The value refers to the percentage of annual income of the peer provider accounted for by revenues deriving from their collaborative short-term rental platform activities. Due to data availability, the indicator uses AirBnB statistics as a proxy for all collaborative short- term rental platforms in the urban area under study. 57 The value refers to the yearly number of individuals that used collaborative short-term rental platforms for accommodation, taking AirBnB as a proxy for the industry. Note that this is not the same as the total number of nights spent in AirBnB listings, since tourists may rent out properties as a group, rather than as individuals. The value also ignores the number of nights stayed per guest, which is considered in the indicator “Total number of nights spent in AirBnB locations”. 58 The value refers to the total number of nights during which listings on the collaborative short-term rental platform AirBnB were rented during the latest year considered in this study. The value is computed using the following formula: [(total number of tourists using AirBnB listings as accommodation in the given year) x (average length of stay in an AirBnB listing)] / (average size of the group renting an AirBnB property). 59 The value refers to the ratio between the number of nights spent in AirBnB listings, taking AirBnB as a proxy for all collaborative short- term rental platforms activity, and the number of nights spent in conventional accommodation providers. 60 The value refers to the ratio between the number of tourists using AirBnB listings for their accommodation, taking AirBnB as a proxy for all collaborative short-term rental platforms activity, and the number of tourists using conventional accommodation providers. 12

Task 4 – Annex 2 - Market Case study – Athens

2 Real estate and housing availability

This section gives an overview of the real estate market and housing availability in Athens, notably rental prices, number of available properties, and occupancy rates.

Due to the lack of data on other collaborative short-term rental platforms and given the comparative size of AirBnB’s offer (about 4.5 times more active listings on Airbnb than on FlipKey, its closest short-term rental competitor platform in Athens), AirBnB is used as a proxy for the collaborative economy market when no other data are available.

2.1 Overview of average rental market prices

Athens prices for short- and long-term accommodation are fairly low (compared to other cities within the scope of Task 4) and have considerably dropped as a result of the economic crisis.

The average market price for long-term rentals61, as the monthly rental cost of a two-room furnished apartment, was EUR 660 in 2015.62 A 2016 report from the Bank of Greece highlights that real estate prices in the city have dropped by 43% between 2008 and 2016.63 The same source noted that real estate prices dropped by 27% when looking at the post-crisis period – mid-2012 to 2014. Interviews with stakeholders have confirmed that this fall in real estate prices could also be applied to rental prices.64

One element important to note is that local authorities have noticed an increase in rental prices in central and tourist neighbourhoods, contrary to the general trend noticeable in the city. Although no figures have been provided to confirm this phenomenon, local authorities attribute this rise to the increase in short-term rental offer.65

See Figure 3, for an overview of the long-term rent of one bed-room apartments in Athens inside the city centre and outside of the city centre and Table 2 for the average monthly rents for long-term rentals in 2016.

61 In this study, long-term rentals are understood to be rooms or entire properties rented out over a period exceeding any short-term threshold imposed by local laws (see definition of “short-term rental”). See sub-section 1.3 for a description of such thresholds. Where there is no such threshold, it is assumed to be a period longer than 120 days per year. 62 CEOWORLD Magazine, Monthly rental cost of furnished two-room apartment in leading European cities as of 2015 (in U.S. dollars). Available at: https://www.statista.com/statistics/503130/furnished-two-room-apartment-monthly-rental-costs-europe/, accessed on 22/05/2017. USD converted into EUR with the USD/EUR exchange rate of 26/05/2017. 63 Ekathimerini.com, 5 January 2016, “House prices set to fall further. Available at: http://www.ekathimerini.com/204821/article/ekathimerini/business/house-prices-set-to-fall-further, accessed on 25/05/2017. 64 Athens rental prices are estimated to have dropped between 20% and 50% depending on the area since 2012, according to the Athens Convention & Visitors Bureau. Source: Athens Convention & Visitors Bureau email received on 30/05/2017. 65 Athens Convention & Visitors Bureau email received on 30/05/2017 13

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Figure 3: Long-term rent for one bed-room apartments in Athens (in EUR)

350

300

250

200

150

Rent Rent price EUR in 100

0 2012 2013 2014 2015 2016 2017

Inside the city centre Outside of the city centre

Source: https://www.numbeo.com/cost-of-living/

Table 2: Average monthly rents for long-term rentals in 2016 Categories Average (EUR) One bedroom 282.235 Two bedrooms N/A Three bedrooms 501.73

Source: Calculated using data from https://www.numbeo.com/cost-of-living/, computed as the average rent between one city centre and one outside city centre apartment The average market price for short-term rentals, using the average nightly rate of an AirBnB listing as proxy, was about EUR 58 as of May 2017.66 There are differences depending on the listing category, from about EUR 25 for a private room67 to about EUR 164 for a large entire place. This is less than the average prices reported for a hotel room, which was of EUR 94 in 2016.68 It should be noted that prices vary depending on the time of the year, as Figure 4 shows.69

This study uses the price of AirBnB entire place average as a comparable alternative to hotel room (double-bed standard room). This alternative is considered comparable because it offers the same level of privacy (e.g. own key, own entrance and private bathroom facilities). Hotel rooms, in this study, are not compared with AirBnB listed rooms because the level of privacy is lower on AirBnB.

66 Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 25/05/2017. 67 AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. USD converted into EUR with the USD/EUR exchange rate of 26/05/2017. 68 Trivago Hotel Price Index 2017. Available at: https://www.statista.com/statistics/614099/overnight-accommodation-costs-athens-city/, accessed on 19/05/2017. 69 Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 25/05/2017. 14

Task 4 – Annex 2 - Market Case study – Athens

Table 3: Average daily and monthly rates for AirBnB listings and hotel room in 201670 Categories Average daily (EUR) Average monthly (EUR) AirBnB all listing categories 58 1,764 AirBnB entire home/apartment 59 1,790 AirBnB single room 25 760 AirBnB shared room N/A N/A Hotel room 94 2,859

Source: AirDNA data for AirBnB listings in 2016, calculated as an average of all monthly daily rates Figure 4: Average daily rates: AirBnB entire place and hotel room71

€140

€120

€100

€80

€60

€40

€20

€0

Athens AirBnB Athens Hotel

Source: AirDNA.

According to the website AirDNA, prices for an Airbnb listing range from EUR 25 to EUR 42 per night for a private room or a studio, to EUR 192 for a four-bedroom apartment.72 Table 2 shows average market prices for short-term rentals spread by rental category.

According to a Hellenic Chamber of Hotels report (2015), 68% of the properties advertised in Athens in October 2014 costed less than EUR 73 per night, as Figure 5 shows.73

70 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days) in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30.45 (in order to represent both months with 30/31 days). Note that the value does not consider potential discounts offered for renting a place for more than a day, even though such discounts are common on collaborative short-term rental platforms and in some hotels. The rooms considered in this indicator can accommodate up to two guests. 71 The average daily rate charged per booked entire place listing. ADR includes cleaning fees but not other Airbnb service fees or taxes. 72 AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. 73 The Hellenic Chamber of Hotels, op. cit., p. 17. 15

Task 4 – Annex 2 - Market Case study – Athens

Figure 5: Range of rates per night for properties listed on Airbnb in Athens, October 2014

Source: The Hellenic Chamber of Hotels, based on Airbnb data, October 2014.

Table 4Error! Reference source not found. below shows an overview of average rental market prices for long- and short-term rentals in Athens. Reported to monthly rates, the price for a two-room apartment in a short-term rental is 2.7 times higher than for a room in a long-term rental.

Table 4: Summary overview of average rental market prices for long- and short- term rentals – Athens No. Indicators Categories Value (EUR) One bedroom 282.235 Average market rental prices for long- Two bedrooms N/A term rentals (2016, monthly)74 Three bedrooms 501.73 All categories N/A AirBnB single 760 room A1 AirBnB shared N/A Average market rental prices for short- room term rentals (2016, monthly)75 AirBnB entire 1,790 home/apartment AirBnB all listing 1,764 categories

74 Average rental price for renting an entire property for long-term (more than 90 days) in the urban area considered. The value corresponds to the monthly average rent paid in the last reference year considered in this study. 75 Average rental price for renting a room or entire property on AirBnB or an average hotel on a short-term basis (less than 90 days) in the urban area considered. The value corresponds to the average daily rate on AirBnB or an average hotel multiplied by 30. Note that the value does not consider potential discounts offered for renting a place for more than a day, even though such discounts are common on collaborative short-term rental platforms and in some hotels. The rooms considered in this indicator can accommodate up to two guests. 16

Task 4 – Annex 2 - Market Case study – Athens

Hotel room 2,859 2.2 Overview of number of available properties

According to local authorities in Athens, the situation of the housing market has deteriorated in central and tourist areas, where the increase in rents tends to displace residents towards less central neighbourhoods.76 Yet, in general, the short-term rental offer does not seem to impact the city’s housing supply in terms of properties available. This finding is partly supported by a 2015 impact assessment conducted by the Hellenic Chamber of Hotels, although the analysis looked primarily at the collaborative short-term rentals’ impact on hotels77. Further data with exact numbers of available dwelling and vacant dwellings, for instance on EUROSTAT, is not available for Athens.

With regards to the number of available properties for short-term rental in Athens, we aggregated the data from the main collaborative short-term rental platforms mentioned in section 1. Note that, as explained in sub-section 1.1, the counting does not make any provision for potential double listings, i.e. properties listed on more than one platform, and therefore double counted:  AirBnB: 4,593 available listings78, among which: - 644 rooms accounting for 14% of all listings; - 3,908 entire homes accounting for 85.2% of all listings. - 35 shared rooms, or 0.8% of all listings.  Wimdu: 581 available listings, among which 49 private rooms and 532 apartments and “holiday homes”;79  9flats: 156 available listings, among which 155 entire places and one private room;80  Housetrip: 1,255 listings, all of which are entire properties; 81  HomeExchange: 4 available listings, all of which entire houses;82  GuestToGuest: 1,100 available listings, all of which home-shared;83  LoveHomeSwap: 7 available listings, all of which properties;84  Booking.com: 831 available listings, among which apartments, holiday homes, homestays, country houses, boats and villas;85  Flipkey: 1,328 available listings, all of which are entire properties86

This study does not make a distinction between primary and secondary residences, and between residences and holiday homes. This is because there is no indication on the collaborative short-term rental platforms of the type of residence the listing is. Even though

76 According to the social impact of the impact assessment, suggesting that the collaborative economy can cause displacements of citizens. 77 Hellenic Chamber of Hotels (2015). Operation and impact of the sharing economy on the Greek hotel industry. 78 AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. 79 Snapshot of http://www.wimdu.co.uk/search?utf8=%E2%9C%93&city=Athens&page=1&search_geolocation=1983- athens&checkin_date=&checkout_date=&city=Athens&guests=2 as of 22/05/2017. 80 Snapshot of Snapshot of https://www.9flats.com/athens-athina-attica-greece as of 22/05/2017. https://www.9flats.com/searches?utf8=%E2%9C%93&mode=list&search%5Bcurrency%5D=GBP&search%5Bsort_by%5D=top_ranking& search%5Bradius%5D=25&search%5Bwoeid%5D=946738&search%5Blat%5D=37.9792&search%5Blng%5D=23.7166&search%5Bgeo_r egion%5D=false&search%5Bpoint_of_interest%5D=false&search%5Bquery%5D=Athens%2C+Athina&search%5Bstart_date%5D=&sear ch%5Bend_date%5D=&search%5Bnumber_of_beds%5D=2&number_of_adults=2&search%5Bnumber_of_children%5D=0, as of on 22/05/2017. 81 Snapshot of https://www.housetrip.com/search-rentals/athens/413619 as of 22/05/2017. 82 Snapshot of https://www.homeexchange.com/en/search/Athens_Greece as of 22/05/2017. 83 Information received from GuesttoGuest on 24/04/2017. 84 Snapshot of https://www.lovehomeswap.com/location/greece/attica/athens as of 22/05/2017. 85 Snapshot of https://www.booking.com/searchresults.en-gb.html?aid=304142&label=gen173nr- 1FCAEoggJCAlhYSDNiBW5vcmVmaFCIAQGYAS7CAQp3aW5kb3dzIDEwyAEP2AEB6AEB- AELkgIBeagCAw&sid=3e9f60929e87cd6ada1152ed9584acea&class_interval=1&dest_id=- 814876&dest_type=city&dtdisc=0&group_adults=2&group_children=0&inac=0&index_postcard=0&label_click=undef&mih=0&no_rooms =1&postcard=0&raw_dest_type=city&room1=A%2CA&sb_price_type=total&search_selected=1&src=index&ss=Athens%2C%20Attica%2 C%20Greece&ss_all=0&ss_raw=athens&ssb=empty&sshis=0&unchecked_filter=hoteltype&unchecked_filter=hoteltype&unchecked_filter =hoteltype&unchecked_filter=hoteltype&unchecked_filter=hoteltype&nflt=ht_id%3D201%3Bht_id%3D213%3Bht_id%3D215%3Bht_id% 3D220%3Bht_id%3D222%3Bht_id%3D223%3B&lsf=ht_id%7C223%7C1 as of 22/05/2017. 86 Snapshot of https://www.flipkey.com/sr/athens/ as of 22/05/2017. 17

Task 4 – Annex 2 - Market Case study – Athens

platforms may indicate whether the listing is an apartment, house or other (e.g. castle, boat, bungalow, etc), it is not clear whether they are the owner’s primary or secondary residences. The same is true for rooms, which could be in a primary or secondary residence.

The number of available properties offered through collaborative short-term rental platforms is, therefore, 9,855. This is the sum of all rooms and properties offered through the collaborative short-term rental platforms considered in this study. The figure generally excludes accommodation provided via traditional means, such as hotels, hostels or bed and breakfasts. However, in certain circumstances, hostel and bed and breakfasts managers list their properties on collaborative short-term platforms (e.g. AirBnB), and it is difficult to immediately distinguish between peers and professionals. While the figure for the number of available properties offered through collaborative short-term rental platforms tries to exclude professionals (e.g. by avoiding hotels/hostels from the counting on websites such as Booking.com, or by only considering “holiday rentals”, rather than “hotels” on TripAdvisor), it may nevertheless include some.

The number of properties available for short-term rental has been increasing over the past years, as mentioned in sub-section 0. This success can be explained as short-term rentals are more affordable for visitors, as prices are significantly lower than hotels (3.8 times for an AirBnB room compared to an hotel room, as Error! Reference source not found. REF _Ref482691368 \p \h Error! Reference source not found. shows). In addition, short-term rentals offer a higher return to landlords than long-term tenants, as the average rental price for short-term properties is higher than for long-term lets – about 2.7 as much for a two-bedroom flat, as Error! Reference source not found. Error! Reference source not found. shows.

The sum of short-term rental listings in Athens should be taken as an approximation. First, it is difficult to list all collaborative short-term rental platform due to the size of the accommodation offer. Second, attention must be paid to the duplication of listings, as hosts may advertise the same room or property across multiple platforms.

Despite this growth in the offer of short-term rentals, hotels form an important part of the tourism accommodation supply. In December 2016, the Hellenic Chamber of Hotels counted 226 hotel units, i.e. 14,985 rooms, compared to 644 rooms available on AirBnB.87

The number of rooms and properties offered through online means is the same as the number of properties available for short-term rentals, i.e. 9,855. However, the figure excludes accommodation provided via traditional means, such as hotels, hostels or bed and breakfasts.

The number of available properties for long- and short-term rental, as the number of vacant dwellings in the city of Athens was 24,844 in 2011.88 This number is 2.5 times higher than the estimated number for short-term rentals, which may suggest that an important part of the housing supply in Athens still goes to long-term rather than short- term lets.

Figures show that short-term rentals do not have a strong negative effect on long- term rentals and the overall housing availability for Athens residents (nor on the

87 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 88 Including dwellings for sale, seasonal use and secondary use. According to the Hellenic Statistical Authority, there were 144,096 vacant dwellings in the region of Attica in 2011. Given the fact that the population of Athens is 5.8 times lower than the Attica region, the number of vacant dwellings for Athens can be estimated to 24,844. Source: Hellenic Statistical Authority, 2011 Population and housing census, Characteristics and amenities of dwellings. 18

Task 4 – Annex 2 - Market Case study – Athens

supply of traditional forms of tourism accommodation, i.e. hotel rooms). However, the Athens Convention & Visitors Bureau highlights that the increase in rental prices combined with the limited number of properties available in central and tourist areas may displace residents towards less central neighbourhoods. Table 5 Error! Reference source not found. provides an overview of the findings illustrated in this sub-section.

Table 5: Summary overview of number of available properties – Athens No. Indicators Number Number of rooms on primary residences (AirBnB, Wimdu 694 and 9flats) Number of entire primary and secondary residences A2 (incl. investment flats) (AirBnB, Wimdu, 9flats, 5,426 Booking.com) Number of available properties for short-term rental 9,855 (sum of platforms) Number of available properties for long and short-term A4 24,844 rental (number of vacant dwellings) Number of available rooms/properties offered through A5 9,855 online means (sum of platforms)

2.3 Overview of occupancy

Short-term rental occupancy in Athens varies depending on seasons. Long-term rental occupancy figures are not available, but interviews with stakeholders have shown that it was rather common for Athens residents to own a secondary residence, which may suggest that long-term occupancy also varies throughout the year.89

With regards to the short-term occupancy rate for collaborative platforms, data are only available for AirBnB, which will be used as a proxy for the broader sector. The short-term occupancy rate for rooms/properties advertised online on AirBnB is estimated by InsideAirBnB at 29.6% in 2017.90 In comparison, in 2016, the occupancy rates for hotels was estimated at 76.2%.

According to AirDNA, short-term rental occupancy highly varies depending on seasons, as Figure 6 shows. Between April 2016 and April 2017, the highest occupancy recorded for AirBnB listings was 70% in September and the lowest 45% in January.91 See Figure 6 below for the occupancy rates of AirBnB entire places and hotels in Athens.

89 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 90 Taken as a proxy for short-term occupancy rate for rooms/properties advertised online. Estimate based on the average length of stay configured for each city, multiplied by the estimated bookings for each listing over a period. Source: Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/ 91 Taken as occupancy rate of entire place listings with at least 1 booking in the month. Source: AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. 19

Task 4 – Annex 2 - Market Case study – Athens

Figure 6: Occupancy rates AirBnB all listings and hotel room92

70,00%

60,00%

50,00%

40,00%

30,00%

20,00%

10,00%

0,00%

juil-16

avr-16 avr-17

oct-15 oct-16

déc-15 déc-16

nov-15 nov-16

mai-16

juin-16

févr-16 févr-17

janv-16 janv-17

sept-15 sept-16

août-15 août-16

mars-17 mars-16

Athens AirBnB Athens Hotel

Source: AirDNA

AirDNA estimates that 61% of listing are rented-out between one and three months per year. This number drops with to 21.1% between four and six months, 13.6% between seven and nine months, and only 4.4% all-year round.93

Data retrieved from the website Inside AirBnB leads to different conclusions. According to this source, 96.9% of AirBnB listings in Athens are made available for more than 60 days a year, with an average of 311 days per year. Also, according to the website Inside AirBnB, AirBnB listings in Athens are booked on average for 108 nights per year, which is beyond the 90-day threshold set by law.94 It suggests a commercial activity on AirBnB listings, as section 3.1 below will develop.

Data on the average length of stay for collaborative accommodation users are not available. The Bank of Greece estimated that the average length of stay of visitors in Athens was of 5.5 days in 2016.95

Although section 0 above shows that the size of the short-term rental offer is negligible compared to the hotel supply, the increase in short-term rentals can have negative consequences for hotels’ occupancy as according to the Hellenic Chamber of Hotels, there has been a decrease in the frequentation of hotels over the past two years, in spite of the overall increase in the number of tourists in the city. As a result, hotel prices have dropped; the average price reported for a hotel room has decreased from EUR 107 in 2015 to EUR 94 in 2016, as Figure 7 shows.96

92 Booked Listing Nights divided by Available Listing Nights. 93 AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. 94 Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 19/05/2017. 95 Bank of Greece data, 2016. Source: Athens Convention & Visitors Bureau email received on 30/05/2017. 96 Trivago Hotel Price Index 2017. Available at: https://www.statista.com/statistics/614099/overnight-accommodation-costs-athens-city/, accessed on 19/05/2017. 20

Task 4 – Annex 2 - Market Case study – Athens

Figure 7: Average cost of a standard double room in Athens from January 2015 to December 2016, by month (in euros)

180 160 155 140 143 133 127 120 113 114 110 111 108 107 100 99 101 100 95 95 91 94 80 80 8283 83 8082 7476 75 60 40 20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Average

2015 2016

Source: Trivago, 2017

Table 6 Summary overview of occupancy – AthensTable 6 provides an overview of the findings presented in this section.

Table 6 Summary overview of occupancy – Athens No. Indicators Value Short-term occupancy rate for rooms/properties 53% A6 advertised online (AirBnB) Short-term occupancy rate for hotels 76.2% A7 Average length of stay of visitors 5.5

Task 4 – Annex 2 - Market Case study – Athens

3 Income and other tourism indicators

This section highlights the impact of the collaborative economy accommodation market on providers’ income and tourism in the city. In doing so, it aims to estimate the broader economic potential of the sector.

3.1 Income indicators

AirBnB data suggest that most collaborative economy providers only rent out one property, suggesting they are not businesses. According to AirDNA, more than 2,600 hosts had only one listing on Airbnb, compared to 563 with multiple listings.97 Inside AirBnB shows different conclusions, with 43.1% of hosts would advertise multiple listings, which advocates for the presence of commercial hosts in Athens98.

The revenues that Athens accommodation providers earn from their collaborative economy activity seem to form an important part of their income. This section uses the income earned by typical AirBnB hosts as a proxy, given the limited data availability on other collaborative short-term rental platform. According to Inside AirBnB, short-term rental activities yield on average EUR 5,592 per host per year in Athens, which is EUR 466 per month.99

AirDNA estimates that hosts renting out on AirBnB for at least 30 days have earned EUR 2,947 for private rooms, and EUR 5,875 for entire places, between April 2016 and April 2017. Figure 9 shows the revenue earned by hosts per available room per month.

Figure 8: Revenue for Airbnb entire place100

€ 50 € 40 € 30 € 20 € 10 € 0

Entire Place

Source: AirDNA

Given that the average monthly wage in Greece was of EUR 1,470 in 2015, it suggests that earnings generated through AirBnB are significant to Athens residents.101 Interviews have confirmed that some real estate agents advertise commercial properties on collaborative platforms, although there are no figures to evidence this practice.102

97 AirDNA – Athens. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. 98 Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 19/05/2017. 99 Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 19/05/2017. 100 Revenue Per Available Room = Entire Place ADR * Occupancy. Differing from the hotel industry, we consider entire place listings as a "room". 101 OECD, Average annual wages. Available at: https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE, accessed on 26/05/2017. 102 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. Athens Convention & Visitors Bureau email received on 30/05/2017. 22

Task 4 – Annex 2 - Market Case study – Athens

Table 7 provides a brief overview of the income indicators identified in this section concerning AirBnB hosts in Athens.

Table 7: Summary overview of income indicators – Athens No. Indicators Value (EUR) Average income gained through short-term rental A8 5,592/year activities (Inside AirBnB)

3.2 Tourism indicators

As mentioned in section 0, Athens welcomed 4,1 million international arrivals in 2015, which constituted an increase of 22.6% compared to 2014.103 In 2016, the city of Athens was expecting further growth to 4,5 million visitors.104

In terms of tourism indicators, two types of indicators are relevant, and are explored in this case study:

a) The number of tourists, or arrivals, per year; b) The number of nights spent, per year.

Using the number of guests hosted by AirBnB as proxy, in 2016, there were 243,000 tourist arrivals on collaborative short-term rental platforms. 105 In comparison, hotels welcome two million guests every year, according to the Athens – Attica & Argosaronic Hotel Association.106 Therefore, the share of incoming tourists in Athens staying in AirBnB properties, as a share of tourists staying in traditional accommodation locations equals to 12.15% (a). The number of nights spent in short-term rentals is not available for Athens, therefore this indicator cannot be calculated using the number of nights spent per year (b). The collaborative economy seems to have an impact on the number of tourists visiting Athens. A study from the Hellenic Chamber of Hotels shows that one third of tourists would not have come to Greece without staying with AirBnB.107 However, there are no figures to support this view. The Athens Convention & Visitors Bureau highlights that most short- term rental properties are located in the city centre of Athens, where are located the main tourist neighbourhoods108 as well as in a 2015 study by the Hellenic Chamber of Hotels, which assesses the development of the “sharing economy” in Greece109. This is also evident on the map illustrated by InsideAirBnB, which locates the positions of all AirBnB listings in the city110. Therefore, it does not seem that the collaborative economy offer deconcentrates the economic benefits to the city centre to less central areas. Table 8 summarises the main tourism indicators retrieved in this section.

Table 8: Summary overview of income indicators – Athens No. Indicators Value Total number of tourists using collaborative B1 EUR 243,000 economy platforms between in 2016

103 Euromonitor International, Top 100 City Destinations Ranking 2017. Available at: http://blog.euromonitor.com/2017/01/top-100-city- destination-ranking-2017.html, accessed on 19/05/2017. 104 The Guardian, 28 May 2016, “Miracle in Athens as Greek tourism numbers keep growing”. Available at: https://www.theguardian.com/business/2016/may/28/greece-tourism-boom-athens-jobs-growth, accessed on 26/05/2017. 105 Airbnb data received on 01/04/2017. Host is defined as an AirBnB community member who rent space on AirBnB. Guest is defined as AirBnB community menbers who stay in AirBnB listings. 106 Athens – Attica & Argosaronic Hotel Association Press release, 20 September 2012. Available at: http://www.all-athens- hotels.com/english/attica/webpage/press-releases, accessed on 22/05/2017. 107 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 108 Interview with a Athens Convention and Visitors Bureau representative, 23/05/2017. 109 Hellenic Chamber of Hotels (2015). Sharing Economy and the Tourism and Hospitality Sector in Greece. 110 http://insideairbnb.com/athens/ 23

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Ratio of collaborative platforms users to users of B2 12.15% traditional accommodation means 4 Impact on local communities

This section describes positive and negative implications of the collaborative economy accommodation offer on local communities.

4.1 Development of ancillary services

There are only a few data available on the economic benefits that collaborative economy tourists would bring to the city of Athens.

The Athens Convention & Visitors Bureau highlights notably that 40 visitors would support one job opening in Greece.111 Also, Bank of Greece data show that in 2016 the average spending of Athens visitor was of EUR 70 per night and EUR 381 per trip.112 An article from The Guardian notes that the economic recovery in Greece highly depends on the tourism sector.113 Since collaborative economy seemed to have an impact on the number of tourists visiting in Athens, it can be assumed that it also contributes to develop tourism-oriented businesses. Indeed, AirBnB reports that, between October 2013 and September 2014, the overall economic impact generated by its activity (including peer providers’ revenues and peer consumers’ spending) was EUR 69 million, supporting 1,060 total jobs. A detailed analysis on the methodology and calculations, however, is not available114.

Still, the Athens-Attica & Argosaronic Hotel Association highlights that tourist spending has decreased in the Mediterranean countries. In 2015, overall tourist spending in Greece fell by 5.5% compared to the year before, the fourth consecutive year.115 The Hellenic Chamber of Hotels noted that the economic situation of Greece was difficult for tourism service providers and received complaints from Athens-based businesses about low sales.116

4.2 Housing supply changes

As shown in sections 0 above, the number of short-term rental properties available in Athens has doubled between 2015 and 2016. According to the Athens Convention & Visitors Bureau, this phenomenon has been particularly noticeable in central and tourist neighbourhoods.

As mentioned in section 3.1 above, it is likely that there is a strong presence of commercial hosts in Athens, as shown by the fact that nearly half of AirBnB hosts advertise more than one listing. In fact, InsideAirBnB shows that, in July 2017, 91.6% of listings have a very high availability (over 60 days/year), while 43.8% of listings are multiple (i.e. whose providers have more than one listing in the city)117. This creates a risk that the housing stock is diverted away from the private sector, as it increases rental prices. This view is supported by the Athens Convention & Visitors Bureau, as mentioned in section 2.1 above, and by the Hellenic Chamber of Hotels, that notes that in central and tourist areas like the

111 Interview with a Athens Convention & Vistors Bureau representative, 23/05/2017. 112 Bank of Greece data (2016) received from the Athens Convention & Visitors Bureau on 29/05/2017. 113 The Guardian, 28 May 2016, “Miracle in Athens as Greek tourism numbers keep growing”. Available at: https://www.theguardian.com/business/2016/may/28/greece-tourism-boom-athens-jobs-growth, accessed on 26/05/2017. 114 http://blog.atairbnb.com/economic-impacts-in-athens/ 115 The Financial Times, 19 December 2016, “Greece’s travel chiefs want visitors to stay longer and spend more”. Available at: http://www.ft.com/cms/s/0/128303aa-b727-11e6-961e-a1acd97f622d.html?ft_site=falcon&desktop=true#axzz4iC5KAfNB, accessed on 26/05/2017. 116 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 117 http://insideairbnb.com/athens/ 24

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Acropolis, there was an increased number of short-term rental apartments at the expense of local inhabitants.118

4.3 Inhabitants’ perception of collaborative short-term rental platforms

There is no information on how Athens inhabitants perceive the collaborative economy accommodation offer. The Athens Convention & Visitors Bureau has highlighted that there were no evidence of protests nor complaints made to the City of Athens as regards the presence of collaborative short-term rental platforms nor tourists.

4.4 Impact on public services

There is no available information on the impact of the collaborative economy accommodation offer on public services.

118 Interview with a Hellenic Chamber of Hotels representative, 22/05/2017. 25

Task 4 – Annex 2 - Market Case study – Athens

5 Future developments

There has been a continuous increase in the number of tourists visiting Athens, and the short-term rental market has boomed in the city over the past years. Data suggest that the revenues that peer providers earn from their rental activity account for a significant part of their income. In addition, as explained above, there is evidence of a significant share of peer providers being active on popular collaborative short-term rental platforms like AirBnB. Although there is very little evidence, particularly provided by qualitative interviews with the local authority, and a brief analysis indicated in the Hellenic Chamber of Hotels’ 2015 analysis, the growth in the collaborative economy offer seemed to have a negative impact on the traditional tourism industry (lower frequentation of hotels) and the long-term housing supply in central and tourist areas (displacement of residents).

Collaborative economy short-term rental platforms are under the attention of Greek authorities, with a succession of two laws regulating the sector in 2016 and 2017. The main concern is over taxation of short-term rental activities. According to the Hellenic Chamber of Hotels study (2015), short-term rentals deprive the Greek State of between EUR 260 million to EUR 276 million.119 According to the Athens Convention & Visitors Bureau, the Greek government is expected to collect a total of EUR 48 million in 2018 with the provisions introduced by the 2017 law.120

119 The Hellenic Chamber of Hotels, 2015, Operation and impact of the sharing economy on the Greek hotel industry, p. 5. 120 Athens Convention & Visitors Bureau email received on 30/05/2017. 26

Task 4 – Annex 2 - Market Case study – Athens

6 ANNEX 1: List of interviewees Organisation Interview date Hellenic Chamber of Hotels 22/05/2017 Athens Convention & Visitors Bureau 23/05/2017

7 ANNEX 2: List of references AirDNA, Athens, Greece. Available at: https://www.airdna.co/city/gr/athens, accessed on 19/05/2017. Athens – Attica & Argosaronic Hotel Association Press release, 20 September 2012. Available at: http://www.all-athens-hotels.com/english/attica/webpage/press-releases, accessed on 22/05/2017. CEOWORLD Magazine, Monthly rental cost of furnished two-room apartment in leading European cities as of 2015 (in U.S. dollars). Available at: https://www.statista.com/statistics/503130/furnished-two-room-apartment-monthly- rental-costs-europe/, accessed on 22/05/2017. USD converted into EUR with the USD/EUR exchange rate of 26/05/2017. City of Athens website, City of Athens organisational structure. Available at: https://www.cityofathens.gr/en/cityofathens, accessed on 19/05/2017. Ekathimerini.com, 5 January 2016, “House prices set to fall further. Available at: http://www.ekathimerini.com/204821/article/ekathimerini/business/house-prices-set-to- fall-further, accessed on 25/05/2017. Euromonitor International, Top 100 City Destinations Ranking 2017. Available at: http://blog.euromonitor.com/2017/01/top-100-city-destination-ranking-2017.html, accessed on 19/05/2017. Hellenic Statistical Authority, 2011 Population and Housing Census. Available at: http://www.statistics.gr/en/statistics/-/publication/SAM03/-, accessed on 19/05/2017. Hellenic Statistical Authority, Gross Domestic Product 2016. Available at: http://www.statistics.gr/en/statistics/-/publication/SEL15/-, access on 19/05/2017. Inside AirBnB – Athens. Available at: http://insideairbnb.com/athens/, accessed on 25/05/2017. OECD, Average annual wages. Available at: https://stats.oecd.org/Index.aspx?DataSetCode=AV_AN_WAGE, accessed on 26/05/2017. The Financial Times, 19 December 2016, “Greece’s travel chiefs want visitors to stay longer and spend more”. Available at: http://www.ft.com/cms/s/0/128303aa-b727-11e6-961e- a1acd97f622d.html?ft_site=falcon&desktop=true#axzz4iC5KAfNB, accessed on 26/05/2017. The Guardian, 28 May 2016, “Miracle in Athens as Greek tourism numbers keep growing”. Available at: https://www.theguardian.com/business/2016/may/28/greece-tourism- boom-athens-jobs-growth, accessed on 26/05/2017. The Hellenic Chamber of Hotels, 2015, Operation and impact of the sharing economy on the Greek hotel industry. The Hellenic Chamber of Hotels, 2016, Sharing economy and the tourism and hospitality sector in Greece. Trivago Hotel Price Index 2017. Available at: https://www.statista.com/statistics/614099/overnight-accommodation-costs-athens- city/, accessed on 19/05/2017. 27

European Commission

Study on the Assessment of the Regulatory Aspects Affecting the Collaborative Economy in the Tourism Accommodation Sector in the 28 Member States

Luxembourg, Publications Office of the European Union

2018 – 27 pages

ISBN 978-92-79-84008-1 doi: 10.2873/857237

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doi: 10.2873/857237