IOBE: Germany Tops Greek Tourism Income in 2023 with 17.3%

IOBE study: Germany was the leading contributor to Greece’s tourism income in 2023

Greece in 2023 recorded a significant trade surplus in services with Germany, the largest economy in the European Union. This milestone is highlighted in the fourth consecutive annual report by Greece’s Foundation for Economic and Industrial Research (IOBE), released recently.

According to the report, income from services reached a historic high of 4.9 billion euros in 2023. Of this amount, 3 billion euros were generated from tourism alone from the beginning through the third quarter of the year. Germany led the country rankings for Greece’s tourism receipts, contributing 17.3 percent of the total income in 2023.

Source: IOBE

In terms of arrivals from Germany, 2023 was also a record year for Greece, with 4.8 million visits, representing a full recovery after the pandemic. Notably, German visitors spent an average of 750 euros per trip to Greece in 2023, compared to the overall average of 571 euros per visitor. This difference of 179 euros aligns with the long-term trend of higher spending by German tourists.

Source: IOBE

The study was conducted by IOBE on behalf of the Hellenic-German Chamber of Commerce and Industry, focusing on Greece’s bilateral economic relations with Germany.

Key statistics from the study reveal that Greece received 3.6 billion euros in 2023 from German travelers. Additionally, many Greek regions received a significant portion of their tourist income from German visitors. Notably, Western Macedonia saw 37.7 percent of its tourist income from Germans, while Crete received almost 25 percent.

Source: IOBE

German investments in Greece at 7.7bn euros

According to the study, Germany was confirmed as one of Greece’s most important trading and investment partners.

In 2023, Germany ranked second only to Luxembourg in terms of total capital stock from Foreign Direct Investment (FDI), holding 16.2 percent of the total, which amounted to 7.7 billion euros.

Source: IOBE

Yet, FDI from Germany to Greece showed a steep decline in 2023, dropping to 516 million euros after having risen exceptionally to 948 million euros in 2022. However, German capital continued to be invested in Greek real estate, with a net inflow of 145 million euros in 2023, accounting for 6.8 percent of total FDI in properties in Greece.

Source: IOBE

It was well documented that the activities of the German business community in Greece provided significant support to the Greek GDP, contributing an estimated 7.9 billion euros in 2022, equivalent to 3.8 percent of the total GDP. In terms of employment, German investments accounted for 75,000 jobs in 2022, representing 1.6 percent of total employment.

Regarding trade, Greek exports to Germany were valued at 3.3 billion euros in 2023, equal to 6.6 percent of Greece’s total exports. Conversely, German exports to Greece amounted to 8.4 billion euros, accounting for 10.4 percent of Greece’s total imports last year.

IOBE’s report was publicly discussed during a presentation by the Greek-German Chamber of Commerce, celebrating its centenary.

Greek Minister of State Makis Voridis, Board Member and Head of Research at the German Institute for Economic Research (DIW) and Professor of Economics at Potsdam University Alexandros Kritikos, and Head of Macroeconomic Analysis and Policy at IOBE Svetoslav Danchev were the main commentators.

During the presentation, Voridis mentioned that the Greek government supports the establishment of “one more, non-systemic banking institution, to enhance competition and to help reduce loan costs in Greece”.