In a remarkable development, Greek tourism is poised to achieve a record-breaking year, reaffirming its pivotal role as a cornerstone of the nation’s economy, as elucidated by the latest data released by the Bank of Greece.
According to official figures, the first five months of 2023 witnessed an impressive influx of international tourists, totaling a staggering 5.76 million, marking a substantial surge of 32.9% in comparison to the analogous period in 2022. Furthermore, recent statistics pertaining to international arrivals at Athens International Airport, considered a reliable proxy for overall visitor volume, have unveiled a remarkable year-on-year ascent of 30% during the seven months encompassing July. This surge also outpaces the corresponding period in 2019, the erstwhile record-breaking year, by an impressive 8%. This monumental momentum has been echoed by the National Bank of Greece in a recent report, where they remarked, “The momentum in spring, the first positive indications from summer bookings, and an improvement in consumer confidence in major markets have set the stage for record arrivals in 2023.”
Anticipating an exceptionally fruitful year, the report postulates that tourism revenues for the ongoing year could potentially surpass the preceding record established in 2019 by an impressive margin of 20%, potentially reaching a remarkable sum of €21 billion. This considerable increase in revenue is largely attributed to higher price levels driven by inflation, which are anticipated to offset the slightly curtailed duration of visitors’ stays.
The report delineates two emerging trends that could significantly influence the tourism landscape in the forthcoming years. Firstly, the ascendance of new and less-crowded tourist destinations such as Mytilene, the capital of the island of Lesvos, and Kavala, a city in northern mainland Greece. Secondly, the growing competition from countries like Turkey, which has expanded its share of the Mediterranean holiday market from 19% in 2019 to 22% in 2022, in contrast to Greece’s stable share of 13%, and Albania, whose modest share has nevertheless surged by 24% since 2019.
The resounding success of Greek tourism in 2023 can be attributed in part to the considerable contribution of American visitors, whose substantial average spending of €1,000 (compared to the overall average of €599) has significantly bolstered the sector’s revenue. Conversely, arrivals from the United Kingdom experienced a minor downturn of 5% in comparison to 2022, reflecting a commensurate decrease in average spending (€668 from €713).
A noteworthy shift highlighted in the report is the early commencement of the tourist season in 2023, with metropolitan hubs, particularly Athens, reaping the benefits. City hotel sales, which constituted 38% of the total in 2019, have ascended to 41% in early 2023, while the islands’ market share has slightly receded from 51% to 48%. Athens is no longer merely a transient pitstop en route to the islands; it has evolved into a compelling destination in its own right.
However, the report also underscores the impact of the July wildfire in Rhodes, estimating a potential 1% decrease in visitor numbers. The southeastern Aegean island accounted for an impressive 16% of all visitors in 2022, contributing to 17% of guests in 4 and 5-star accommodations.
Reflecting on the past five years, Greece’s hospitality sector has witnessed an infusion of investment, yielding over 150 new and revamped hotels, predominantly falling within the 4 and 5-star categories. Notably, this includes an impressive tally of over 60 establishments in the heart of Athens itself. The discernible surge in tourism and corresponding investments underscore Greece’s enduring appeal as a premier travel destination.
