NBG: Climate Change Boosts Travel Demand for Lesser Known Greek Destinations

Kavala, Greece. Source: Visit Kavala.

Climate change and high temperatures are set to increase demand for lesser-known Greek destinations, according to the latest report released by the National Bank of Greece (NBG).

According to the bank’s third-quarter bulletin for tourism, climate change is creating new trends in post-Covid travel requiring a redefinition of the tourism map and the extension of the tourist season across Greece.

Indicative of the trend, arrivals to all-time favorite Mykonos in June dropped by 7 percent while not so popular northern destinations including Kavala and Lesvos saw arrivals increase by 20-25 percent.

Lesvos, Greece.

At the same time, thanks to high air traffic, strong traveler demand, recovering road arrivals, in addition to improving consumer confidence in main source markets, Greece can expect good tourism performance in 2023. NBG analysts expect 2023 to generate up to 21 billion euros in tourism receipts.

At the same time, individual traveler bookings (travel agencies not included), are up by 10 percent against to 2019 compared to 2 percent in other Mediterranean rival markets.

Turkey and Albania are Greece’s main competitors this year.

Source: NBG.

According to NBG analysts, the summer peak season (June, July and August) is expected to cover a smaller percentage of annual arrivals reflecting an extension of the tourist season. In June, total arrivals by air increased by 12 percent compared to 2022.

On the downside, NBG analysts point to the insecurity created by the possibility of fires and heat waves.

“Despite this pressure, the prevailing dynamics and the exceptional image of hospitality have preserved Greece’s reputation and at the same time are keeping high the probability that this year’s arrivals will exceed the highs of 2019. Given this and taking into account inflationary pressures, 2023 tourism receipts could approach 21 billion euros,” the bank said.