Greek Tourism Shows Promise Despite Challenges, Says Square Lime

Photo source: Square Lime

Data from Greece’s current tourism season reflect both positive trends and challenges, according to boutique hospitality strategists at Square Lime.

Specializing in managing boutique hotels and villas across popular Greek destinations — such as Mykonos, Santorini, Crete, the Peloponnese, and Athens — Square Lime shared insights on the boutique hospitality market as the summer season comes to a close.

The company’s analysts report mixed trends this year.

In particular, the Cyclades region showed a two-speed performance. Mykonos and Santorini saw declines in both occupancy rates, which decreased by 5 to 15 percent, and in average daily rates (ADR), which fell by 5 to 20 percent. Despite these declines, Square Lime’s properties in these areas maintained last year’s strong performance, showcasing the company’s resilience in key markets.

In other destinations, including Crete, the Peloponnese, and Athens, increased tourist arrivals were offset by a surge in bed capacity, largely driven by short-term rentals. According to Square Lime, this expansion led to lower occupancy and revenue for many hotels.

Nevertheless, Square Lime stood out with an innovative approach, achieving record results. Occupancy at the company’s properties increased by 5 to 25 percent, with profitability rising due to an optimized booking mix, where direct bookings accounted for up to 85 percent of reservations at some locations. In Athens, both occupancy and ADR rose by 5 to 10 percent.

Tourism demand fluctuates amid global uncertainty

Photo source: Square Lime

According to Square Lime, factors such as ongoing conflicts, inflation, the upcoming U.S. elections, and major European events like Euro 2024 and the Paris Olympics have affected tourist traffic, with July and August reflecting signs of weakening demand.

However, May, June, September, and October have shown positive performance so far. Notably, earlier forecasts for September and October were promising, though there has been a slowdown in last-minute bookings.

Looking ahead to 2025, Square Lime’s plans

Photo source: Square Lime

Square Lime’s analysts emphasize that pricing strategy will be a key challenge for the Greek tourism sector in 2025, given the many volatile factors shaping the industry.

Geopolitical uncertainties, particularly the impact of ongoing conflicts, could significantly disrupt global travel and economic conditions. Economic difficulties in Europe may dampen consumer purchasing power, while emerging destinations like Montenegro and Albania are adding to regional competition. Additionally, the U.S. elections may cause economic shifts with global consequences, further influencing the tourism landscape.

Square Lime, however, said it remains “committed to innovation” and will adapt its services to meet the evolving challenges.

The company plans to expand its sales department and increase participation in international exhibitions, with a focus on tapping into emerging markets such as Australia and Asia.

“Through continuous improvement and strategic expansion, Square Lime aims to bolster its market position and competitiveness globally,” the company’s management said.