SETE Forecasts 2024 as a Landmark Year for Greek Tourism

SETE President Yiannis Paraschis and journalist Sia Kossioni. Photo source: Reimagine Tourism in Greece

Greek tourism is on track to achieve a significant milestone in 2024, with an estimated growth of 25 percent compared to 2019, according to Greek Tourism Confederation (SETE) President Yiannis Paraschis.

During the recent “Reimagine tourism in Greece” conference in Athens, Paraschis highlighted that, unlike other European destinations still aiming to return to pre-pandemic levels, Greece has charted a different course, experiencing increased arrivals and revenues.

“Greek tourism has improved compared to last year; however, the growth in arrivals is outpacing the growth in revenues,” Paraschis noted.

He highlighted that from January to July, arrivals increased by 11 percent, while revenues grew by 5.5 to 6 percent, including figures from the cruise sector. These results mirror current travel trends, such as shorter stays, a rise in city-break visits, and a significant improvement in road tourism compared to previous years.

When asked about the decline in revenues and traffic observed in July, SETE’s president explained that the positive trend had reached a turning point by mid-summer compared to the same period in 2023, based on data from the Bank of Greece.

“The data from the Bank of Greece for July indicates a decline compared to last year,” Paraschis said, referencing a shift in tourism trends.

“It also serves as a reminder that the expectation of continuous improvement year over year post-pandemic is no longer guaranteed. We must concentrate on providing value for money in Greek tourism and maintaining the overall competitiveness of our offerings. While higher arrivals and revenues may occur, their sustainability beyond 2025 is uncertain.”

Inflation and overtourism

During the discussion, Paraschis was asked how tourism has adapted to the new economic conditions imposed by inflation.

“The international markets dictate what constitutes value for money, but Greece remains an attractive and competitive destination,” he noted.

“While there is often a focus on specific high-end destinations in the Cyclades, this does not encompass the entirety of Greek tourism. Greek tourism spans 13 regions and offers a diverse array of products, allowing visitors to choose from various accommodations, services, and locales, each with different price points.”

It’s important to highlight that certain Cycladic destinations, such as Santorini and Mykonos, attracted significant attention this summer due to large tourist crowds causing congestion and raising concerns about overtourism.

It is noted that on the first day of the conference, Greek Prime Minister Kyriakos Mitsotakis asserted that Greece does not face an overtourism problem, in contrast to destinations like Mallorca.

“The concept of overtourism has emerged in the post-pandemic era, driven by the robust rebound and growth that Greece has experienced. This has placed pressure on various systems, and in many areas, the concentration of tourists has clearly surpassed what the existing infrastructure can handle,” Paraschis said.

‘Airbnbs have fueled the perception of overtourism’

SETE’s president further noted that short-term rentals have contributed to the perception of overtourism, largely due to the absence of clear regulations distinguishing between occasional, amateur operators and professional management.

“Short-term rentals have rapidly expanded in comparison to the traditional hotel industry in recent years, often operating below the radar. We’ve reached a point where there are approximately 900,000 beds in hotels and another 900,000 in short-term rentals. In many areas, this has resulted in challenges related to traffic and infrastructure pressure.”

Paraschis acknowledged that short-term rentals are a global reality and a vital component of the accommodation sector. He also revealed that hotels generated 10 billion euros in turnover in 2023, while declared income from short-term rentals was 700 million euros.

“We support regulatory interventions, but I don’t believe short-term rentals should be blamed for all housing-related issues,” he added.

Climate change and the tourism economy

Photo source: Reimagine Tourism in Greece

During the conference, the discussion shifted to the new tax measures recently introduced by the Greek government to foster a more sustainable tourism ecosystem.

Paraschis underlined that tourism can significantly contribute to increasing public revenues, particularly when those revenues are reinvested to enhance infrastructure and operations within tourist destinations, directly benefiting the tourism product.

“Measures aimed at general revenue collection that lack checks, transparency, and accountability — and are not tied to the regions where the funds are generated — cannot have our support,” SETE’s president said.

“We are discussing 500 million euros being collected from these new measures,” he added, noting that this represents 5 percent of overall turnover and over 20 percent of profits.

“While we acknowledge the challenges posed by the climate crisis, tourism cannot shoulder the entire burden. Furthermore, we believe these measures should stem from a proper consultation process and be compensatory in nature,” Paraschis said.

Organized by Kathimerini, the annual “Reimagine Tourism in Greece” conference aims to promote sustainable tourism by bringing together leading thinkers, political and business leaders, and key figures from the hospitality industry.