Warning Sign for Greek Tourism: Revenues Fell Hard Since 2005

by on 22 May 2019

Hopes for another record tourism season that has helped bring Greece a slow recovery from a nine-year economic recession were set back after data showed the failure to go after higher-income visitors is bringing far less revenues than hoped.

With many visitors from the Balkans and Eastern Europe who spend less, and fewer wealthy tourists – despite Greece’s allure for celebrities and a bevy of new high-end luxury resorts – there’s been a 30.3 percent drop in per capita spending since 2005..

That period includes the last few years when there’s been a consecutive run of record numbers of people coming and with tourism accounting for as much as 18 percent of the country’s Gross Domestic Product (GDP) of 179.53 billion euros ($200.3 billion.)

The figures were compiled by the Institute of the Greek Tourism Confederation (INSETE) and showed the revenue decline was also pushed by a reduction in the average stay by at least one day, reported Kathimerini.

In 2018, the average per capita expenditure of visitors to Greece was 519.6 euros ($579.71) compared to 2005, when it was 745.7 euros ($831.97) per trip, a drop of 226.1 euros ($252.26.).

Almost two-thirds of that reduction (63.2 percent or 143 euros -$159.54 ) is attributed to the shortening of the average stay, and 29 percent, or 65.5 euros ($73.08), to the change in the mix of markets that comprise critical Greek tourism.

Considering that 100 euros ($111.57) buys less in 2018 than it did in 2005, due to inflation, the actual reduction of tourists’ spending is even greater.

INSETE’s General Director Ilias Kikilias told the newspaper that to get tourism spending cranked up that Greece needs “the creation of a more sophisticated product with higher-quality features that would upgrade the overall experience of the visitor and concern all links of the value chain that make up the tourism product.”

Also, he added, “A more efficient management of destinations with specific strategic planning, merging of forces and broader cooperation on a central and local level, along with the modernization of infrastructure for energy sufficiency, cleanliness, policing, healthcare etc. as to cover the requirements of the tourists as well as the inhabitants of this country.”