Analysis: Greek Tourism ‘Slowly’ Moving Away from Seasonality

Greece is on track for a record year in tourism, with 36 million expected arrivals, reflecting a 10 percent increase over the previous year, according to analysts from the National Bank of Greece.

However, according to the analysts, beneath the surface of these impressive numbers, there is a “quieter” but highly significant transformation happening in the country’s tourism sector: Greece’s market is shifting away from its traditional seasonality, aligning with global tourism trends.

A shift towards year-round tourism

The National Bank’s financial analysis points to a growing trend of reduced seasonality in Greek tourism. The shift reflects international demand for less concentrated peak-season travel, offering substantial long-term benefits. The foundation for this year’s success was largely laid in the first half of the year, with tourist arrivals increasing by 16 percent overall and a notable 21 percent surge in the spring, compared to the same period in 2023.

Photo Source: Visit Greece

Positive impact on employment

According to the analysis, the upward trend in Greek tourism has had a direct impact on the job market, contributing to a 5 percent increase in hiring on an annual basis. Greece has maintained a competitive edge in the Mediterranean tourism sector, with a 21 percent increase in tourist arrivals since 2019, outperforming the region’s average of 9 percent growth during the same period.

Steady growth in second half of 2024

The bank’s analysts say that projections for the second half of 2024 indicate continued growth, albeit at a slower pace. A projected 8 percent rise in tourist arrivals is expected compared to the second half of 2023, with road arrivals playing a key role in this growth, especially during the fall. In July and August alone, arrivals increased by 6.7 percent, and early data suggests a 9 percent rise in the fall months, supported by road travel trends.

Hotel and airport performance remain strong

Moreover, according to the analysis, the Greek hotel industry is performing above historical averages, with a future activity index showing a positive 26-point difference during the peak months of July and August. Additionally, air travel has maintained its summer momentum, with a 6 to 7 percent increase in flights and available seats during September and October.

Evolving tourist preferences

Photo Source: Visit Greece / © P Merakos

The analysis also highlights that there is a noticeable shift in tourist preferences toward more authentic experiences in Greece. According to research from the Bank of Greece, tourists are increasingly seeking local activities and products over traditional all-inclusive “mass tourism” services. This change is driving many in the hospitality sector to adapt. Forty-four percent of the market has already responded to these new preferences, with another 25 percent planning to adjust their offerings. Larger hotels are leading these changes, but smaller hotels are also making efforts to adapt to the evolving demands of travelers.

Building stronger local ecosystems

One of the most critical opportunities for smaller hotels, according to the Bank’s analysts, lies in forging closer relationships with local businesses to create tourism “ecosystems”. These collaborations enhance the customer experience by connecting visitors with local culture, services, and products. Small hotels are increasingly capitalizing on this trend, with three-quarters of their bookings made through direct contact, fostering stronger ties with both customers and employees. Seventy percent of their staff work on a permanent basis, contributing to the stability and growth of this segment.

Conclusion: A bright future for less seasonal tourism

The Bank of Greece’s report concludes that Greece has significant potential to further reduce seasonality in tourism, particularly in the spring months, bringing the country more in line with other Mediterranean destinations. The country’s ability to adapt to these global trends will be key to sustaining growth and enhancing its competitiveness in the global tourism market.