NBG: Greece’s Tourism Sector Still on Track Despite Natural Disaster Toll

Hellenic Parliament, Athens, Greece. Photo © Maria Theofanopoulou

Greece’s tourism sector is set for a record year in terms of revenues despite 1.2 billion euros in losses as a result of fires and floods in 2023, according to the latest report released by the National Bank of Greece (NBG).

More specifically, according to NBG’s “Business Trends” study, Greece’s tourism sector is expected to break a new record in arrivals up by 4% compared to pre-Covid 2019 generating more than 20 billion euros in revenues, or a 13% increase over record year 2019.

NBG analysts describe this performance as “exceptional” despite the toll of fires and floods which cost the sector 1.2 billion euros in losses as result of cancellations.

According to the report, key factors affecting the sector’s performance in 2023 included:

– the effects of the climate crisis which cost Greece 0.5 million arrivals or 0.3 billion euros in revenues

– the cost of living crisis which forced tourists to slash their budgets for travel. Indicatively, average tourist spending per arrival dropped by 5 percent over 2019

– limited consumption cost Greece 0.9 billion euros in revenues.

Looking ahead, NBG analysts expect the geopolitical instability, the climate crisis and inflationary pressures to remain as challenges.

At the same time however, prebooking data for 2024 reveals a 37 percent increase over 2019 and a 34 percent rise against 2022.

Additionally, the extended tourism season and the increasing traveler interest to visit off season can further boost demand for lesser-known destinations beyond the peak summer months.

According to a study released by the Institute of Tourism Research and Forecasts (ITEP) earlier this week, Greek hoteliers in Thessaly and on Rhodes suffered 96 million euros in losses as a result of floods and fires this year.