SETE: Greek Tourism Jan-May Data Calls for ‘Cautious Optimism’

Greek Tourism Confederation (SETE) President Yiannis Paraschis.

Greece’s tourism data from the first five months of 2024 provides grounds for “cautious optimism” regarding the course of arrivals and revenues in Greek tourism, according to Greek Tourism Confederation (SETE) President Yiannis Paraschis.

Speaking during the confederation’s 32nd General Assembly on Thursday, Paraschis emphasized the importance of 2023 as a milestone year for Greek tourism. He underlined the need for continuous improvement and adaptation within the industry to sustain its positive momentum and competitiveness in the post-pandemic era.

Last year, according to official data, arrivals to Greece reached 36.1 million, recording an increase of 6.1 percent compared to 34 million in 2019. Additionally, revenue increased by 13.3 percent to 20.6 billion euros in 2023, up from 18.2 billion euros in 2019. The direct impact of the sector on the Greek economy in 2023 was 28.5 billion euros, corresponding to 13 percent of the country’s GDP.

“If we include the indirect contribution of the sector, accounting for economic multipliers, then this percentage reaches 30 percent of the country’s GDP.”

January-May 2024 data is positive

Regarding 2024, he expressed “cautious optimism” based on the data from the first five months:

– Air arrivals compared to 2023 show a 12.4 percent increase in the first five months (Athens Airport: +16.4 percent and regional airports: +9.5 percent).
– Planning for seat capacity of airlines to Greece is up 8.2 percent for the year as a whole.
– Road tourism has increased by around 11 percent during January-May, while average expenditure per capita in the first quarter saw a 3 percent increase.

“The growth momentum of the strong brand ‘Greece,’ built in recent years, shows considerable resilience,” he pointed out.

“Despite intensifying competition from neighboring markets, reduced intensity of the so-called ‘revenge travel’ post-pandemic, ongoing geopolitical crises in our region including conflicts in Ukraine and Gaza, natural disasters, persistent inflation affecting incomes, and broader social issues highlighted by European elections.”

Success is not guaranteed

However, Paraschis cautioned against assuming success is guaranteed. “In order to maintain our positive path, we must systematically address current challenges and seek consensus on the future development model of Greek tourism in the coming years,” he said.

Paraschis reiterated five priorities directly linked to the national tourism strategy for 2030, prepared by SETE. These priorities emphasize tourism investments and competitiveness, infrastructure, destination management and promotion, the labor market, and sustainability.

Tourism investments reach 5.1 billion euros

Referring to tourism investments, Paraschis noted they reached 5.1 billion euros in 2023, nearly double the amount from 2019 (2.7 billion euros). “This has significantly contributed to narrowing the critical investment gap,” he emphasized.

SETE’s president added that the investment trend is expected to remain positive, contingent upon several factors that directly impact the attractiveness and competitiveness of tourism investments.

‘It’s unreasonable to charge tourism due to lack of infrastructure’

During his speech, Paraschis expressed SETE’s objections to the potential increase of the municipal duty (known in Greek as “τέλος διαμονής παρεπιδημούντων”) paid by hotels to municipalities, or for hotels to contribute a portion of their turnover to local authorities to cover the “burden” tourism places on destinations.

“It is unreasonable to burden a single economic activity, tourism, once again due to infrastructure weaknesses and ineffective destination management,” he stated, emphasizing that the benefits of tourism extend throughout the economy and society.

“On the contrary, our position is that taxes and fees from tourism should be reinvested into actions that improve the quality of life for residents and enhance the visitor experience in the areas from which they are collected,” Paraschis stressed.

He also noted that late last year, the Greek government announced a climate resilience levy to be imposed on hotels, with revenues directed to a specially created emergency fund for natural disasters.

Paraschis then highlighted the absence of a large conference center in Greece.

“I particularly focus on the lack of conference infrastructure in Athens, as well as the need to upgrade relevant facilities in Thessaloniki. This deficit not only results in job and revenue losses but also hinders our ability to attract major conferences and mitigate the effects of seasonality,” he explained.

DMMOs, Labor market, Sustainability

Addressing the management and promotion of destinations, Paraschis referres to the Destination Management and Marketing Organizations (DMMOs) and stressed the need for improvements.

“We have proposed enhancements to the legislative framework governing DMMOs, advocating for a model that includes greater involvement from the private sector and local communities,” he said.

Regarding the labor market, Paraschis mentioned SETE’s ongoing discussions with relevant ministries to enhance working conditions and mitigate seasonality through programs aimed at attracting, training, and continuously improving the skills of human resources.

On the topic of sustainability, SETE’s president emphasized its crucial importance for tourism businesses, particularly small and medium-sized enterprises.

“Sustainability is the only viable path forward,” he asserted, calling for SETE to lead efforts in the sector’s green transition supported by recovery funds and other financial tools, alongside voluntary self-regulation for social and environmental sustainability.