ITEP Releases Results On Greek Tourism 2012 Performance

The average room rate of Greek hotels in August 2012 increased two percent to 100.2 euros compared to the same month of 2011, according to the annual survey of the Research Institute for Tourism (ITEP) presented yesterday, 28 March, by the Hellenic Chamber of Hotels.

The survey showed that during the same month last year, hotel occupancy increased by 0.1 percent and reached 77.8 percent and employment grew by 0.8 percent.

Meanwhile, in May 2012, employment and hotel occupancy decreased by 2.3 percent and 6.2 percent respectively and the average room rate recorded a minor increase (1.14 percent).

Greek tourism figures in 2012

Incoming tourism in Greece decreased in 2012 by 5.5 percent compared to 2011. Greater was the reduction in the arrivals from the EU-27 countries (-8.5 percent) due mainly to the decline of tourists from France (-15 percent) and Germany (-5.9 percent).

In regards to other countries, arrivals from Russia grew by 18.4 percent while arrivals from the US dropped by 23 percent.

According to the survey, Greece received 4.6 percent less revenue in 2012 than the previous year.

International tourism expenditure drops in Greece

With regard to tourism expenditure, according to the survey, China was once again by far the faster growing spender for trips abroad with annual growth of 42% compared to 2011, followed by Russia which increased its expenditure by 31%. In monetary terms, the U.S. market expanded by 7%, the UK by 5% and Germany by 3%.

Instead, the markets of the countries of Southern Europe applying austerity programs shrank, in order to improve their fiscal imbalances. In France, travel expenditure fell by 7%, in Italy by 2%, in Spain by 4% and in Greece by 18.5%.

Greece has a seasonality problem

According to the results of the Border Survey of the Bank of Greece, in 2012, 68.9 percent of the total tourist traffic corresponds to the June-September period while 85 percent to the May-October period.

“At present, winter tourism is a comparatively small part of total tourism activity, though with significant growth potential,” ITEP noted.

Investment drop in 2012

The survey also showed that private investment in Greece was shrinking.

According to data from the draft budget for 2013, total investments decreased by 21.3 percent in the first quarter of 2012, while public investment for the same period noted single digit change.

To read the full version of ITEP’s survey “Performance of Greek Tourism & developments in the basic figures of the Greek Hotel Market 2012” (in English), press here.