INSETE: Greek Tourism Drives Growth, Creates Jobs in 2018

Temple of Zeus, Athens. Photo: GTP

The Greek tourism industry’s direct contribution to the country’s GDP came to 21.6 billion euros or 11.7 percent, attracting 5 billion euros worth of investments and employing overall up to 44 percent of the workforce in 2018, according to data released this week by SETE Intelligence (INSETE), the research department of the Greek Tourism Confederation (SETE).

More specifically, according to INSETE’s study titled “Contribution of Tourism to the Greek Economy in 2018”, the sector’s direct contribution to GDP increased by 13.3 percent, or 2.5 billion euros, against 2017. The sector’s overall GDP contribution in 2018 ranged between 25.7 percent (47.4 billion euros) and 30.9 percent (57.1 billion euros).

In terms of job creation, during peak season, tourism employed some 411,000 people in accommodation and catering, contributing 16.7 percent and overall (directly and indirectly) between 36.7 percent and 44.2 percent, reducing at the same time unemployment, especially among young people and women.

According to the INSETE study, 90 percent of tourism revenue comes from abroad, including cruise, aviation and sea transport receipts, which came to 18.2 billion euros, up by 11.3 percent or 1.8 billion euros against 2017.

Inbound tourism, meanwhile, demonstrated a positive momentum in 2018 with an improvement in all indicators apart form average length of stay, which followed the global downward trend.

On the downside, seasonality remained high, with 68.4 percent of arrivals and 72.5 percent of revenue recorded during peak season between June and September.

Broken down, tourism contributed 47.2 percent to Crete’s GDP, 71.2 percent to Ionian islands growth, and 97.1 percent to the South Aegean region’s economy – all three regions recording the highest per capita GDP in the country.

With regard to investment activity, tourism brought in a total of 5 billion euros in investment, 1.9 billion euros of which in domestic value added.

The study figure indicate that every single euro of travel spending generates an additional 1.2-1.65 euros of additional economic activity.

While 1 euro of tourist revenue boosts the country’s GDP by 2.2-2.65 euros.