Greece’s tourism sector faces a critical shift as visitor numbers grow but average spending per traveler declines, raising questions about the long-term sustainability of the industry, according to a new Eurobank study.
The report titled “Tourism Pillar: Key Characteristics, Economic Impact, Challenges, Opportunities, and Policy Proposals”, authored by economist Tasos Anastasatos and the Economic Analysis & Research Unit, highlights that future growth will rely less on attracting more arrivals and more on increasing the economic contribution of each visitor.
Changing visitor patterns
Reflecting global travel trends, Greece is seeing more short-term trips and fewer extended stays, especially in urban centers like Athens and northern regions such as Central Macedonia and Epirus. The rise of city breaks and overland arrivals from neighboring Balkan countries contribute to this shift, leading to shorter average stays and lower per-trip spending.
The study warns that continuing to prioritize volume over value risks straining the environment and local infrastructure, potentially harming the quality of Greece’s tourism offering.
Declining average spend despite rising arrivals
While international arrivals surged at an average annual rate of 7.1 percent between 2011 and 2024, reaching 40.7 million visitors in 2024, average spending per visitor fell from around 640 euros in 2011 to 530 euros in 2024. Total tourism revenue grew at a slower pace — 5.8 percent annually — amounting to 21.6 billion euros in 2024, or 9.1 percent of GDP.
Though average spend per overnight stay increased nominally from 68.6 euros in 2010 to 89.7 euros in 2024, inflation adjustments suggest minimal real growth, indicating that revenue gains have largely come from higher visitor numbers rather than increased spending intensity.
A roadmap for sustainable, high-value tourism
Eurobank’s report outlines ten policy priorities to transition toward a sustainable tourism model focused on higher-value visitors:
- Enforce laws against illegal construction to protect natural and cultural landscapes
- Regulate tourism facility development for environmental harmony
- Promote investment in premium hotels and infrastructure
- Upgrade public spaces and environmental quality
- Invest in workforce training for better service and higher wages
- Support alternative tourism types like cultural, agrotourism, and city breaks
- Encourage green business practices and circular economy initiatives
- Regulate short-term rentals to stabilize markets and housing
- Implement climate adaptation and off-season incentives
In conclusion, Eurobank’s report says Greece’s tourism industry has successfully increased visitor numbers over the past decade, but the next phase demands a strategic pivot.
“By focusing on visitor spend, improving quality, managing growth, and embracing sustainability, Greece can ensure the sector remains resilient, economically robust, and environmentally responsible,” the banks experts note.
Source: news.gtp.gr