Greece’s Tourism Sector GDP Contribution Still Down on 2019

Travel receipts recorded in 2023 in Greece are up compared to 2022 but down over pre-Covid 2019 with the sector’s direct contribution to the Greek economy still below pre-pandemic levels, found a report released recently by Eurobank.

According to Eurobank, travel receipts in 2022 came to 17.7 billion euros up by more than 68 percent year on year but down by 3 percent compared to 2019.

The tourism sector’s direct contribution to the Greek economy exceeds 10 percent of GDP and reached 20 percent when taking into account its indirect effect.

Citing central bank data for the first quarter of the year, Eurobank expects 2023 to be a good year for tourism, with travel receipts surpassing both last year’s levels and those of 2019.

Bank analysts are forecasting travel receipts to reach an average 22 billion euros up by 20 percent over 2019 driven by an expected increase in the number of arrivals this year but with reduced spending per trip.

Analysts note that average spending per day appears to have remained unchanged over the 2005-2022 period. Indicative spending according to Bank of Greece data in the 2005-2010 period: 71.4 euros; in 2011–2016: 72.1 euros; and in 2017–2022: 73.5 euros.)

Average length of stay also dropped from 9.9 overnight stays in 2005–2010 to 7.9 overnights in 2011–2016 and to 7.6 night stays in 2017–2022.

According to bank analysts, “combined with the fact that there are no signs of a regular  ‘extension’ of the tourist season, it is another indication of the need to transition to a more qualitative and sustainable model of tourism operation and development”.