Alpha Bank analysts are optimistic about the year ahead for tourism in Greece despite imminent challenges, according to the bank’s annual report released this week.
More specifically, Alpha Bank expects 2024 to be another record year for the Greek tourism sector, which appears to be resilient to market shocks.
At the same time, bank analysts list three major challenges which may impact tourism performance this year. Topping the list is climate change which is expected to directly affect everything from tourist flows and quality of services offered to the length of the tourism season.
Staff shortages are next in line affecting the smooth operation of tourism enterprises, mainly hotels, and the quality of services offered. Indicatively, last year, despite a rise in employment figures, Greek hotels were short of some 53,000 employees, or 20 percent of all positions in hotels.
Expected also to directly affect tourist flows are investments in tourism infrastructure and the speed with which RRF funds will be absorbed.
Alpha Bank cites a PWC study according to which dozens of key tourism projects, including the redevelopment of Hellinikon, the Kastelli Airport on Crete as well as works on regional airports, marinas and ports are expected – once completed – to give the sector an added boost. Additionally it notes that a total of 761 million euros were invested in hotel upgrades in 2023 up from 621,000 euros in 2022.
