ITEP: Energy Costs, Staff Shortages and War Weighing Down on Greek Hotel Sector

After the Covid-19 pandemic, the Russia-Ukraine war, soaring energy prices and lack of staff are taking a toll on Greece’s hotel sector, according to a study conducted by the Institute for Tourism Research and Forecasts (ITEP) on behalf of the Hellenic Chamber of Hotels (HCH).

More specifically, according to study findings presented during the HCH 10^th general assembly by ITEP president, Konstantina Svinou, the cost of food and drink supplies and of energy accounted for more than 50 percent of hotel turnover.

The cost of food and drink supplies as a percentage of annual hotel turnover was up by 23.9 percent compared to a year ago, while the cost of energy (electricity, fuel) for open hotels in the December 2021 – February 2022 period rose to 37 percent from 18.7 percent.

Looking at the impact of inflation on hotel operations, the ITEP study found that the increase in energy costs led to a 102.1 percent rise over 2019, with the corresponding increase in supplies coming to 45.8 percent compared to August of 2019.

Meanwhile, energy costs in June 2022 increased by 52.4 percent compared to the same month in 2019; 56.9 percent in July; 94.3 percent in August; 100.2 percent in September; and 102.1 percent in October. Additionally, the cost of supplies increased by 34.9 percent in June compared to 2019; 36 percent in July; and 45.8 percent in August.

ITEP analysts go on to refer to staff shortages as another main problem Greek hoteliers are facing with data revealing that 23 percent of positions at operating hotels remained empty last season leaving open 60,225 jobs.