SETE: Holistic Approach to Greece’s Tourism Development Needed

Greek Tourism Confederation (SETE) Executive Director Alexandros Thanos. Photo source: Olympia Forum

The importance of adopting a holistic approach to Greece’s tourism development was recently emphasized by Alexandros Thanos, the Executive Director of the Greek Tourism Confederation (SETE).

Speaking during a panel discussion at the 5th Olympia Forum, held in Ancient Olympia, Peloponnese, Thanos stressed the need for local authorities, both regional and municipal, to collaborate and find common ground to effectively plan tourism growth and infrastructure development.

“Today, when we talk about tourism development, the focus is usually on promotion rather than on management and infrastructure,” he said, underlining the necessity of a comprehensive strategy for sustainable tourism growth.

Thanos also pointed out that not all parts of Greece are at the same stage of tourism development. He emphasized the importance of recognizing and utilizing the unique strengths of different regions instead of applying a one-size-fits-all approach.

“Tourism in Greece should not be viewed as uniformly saturated or overdeveloped across the country,” he said. He advocated for a tailored strategy that takes into account the specific needs and potential of each region, allowing areas with untapped potential to grow and develop. This regional focus, he argued, will enable Greece to fully harness its diverse and rich tourism offerings.

“Tourism must be approached ad hoc, at the regional level, to fully exploit the potential of this blessed land called Greece,” he added.

During the discussion, it was noted that while many areas in Greece have well-established tourism markets, regions like Western Greece still have significant room for growth.

Photo source: SETE

Addressing the gap between tourism growth and revenue decline

When asked to explain why tourism revenues are declining despite increasing visitor numbers, Thanos attributed the trend to changing travel behaviors.

According to Thanos, in the past, travelers stayed longer and spent more in one destination. “Today, more people are traveling, but they spend fewer days in each place,” he explained. As a result, while the total spend per trip has decreased due to shorter stays, the average spend per person has remained relatively stable.

Thanos also highlighted the growth of road tourism compared to air travel, a trend observed this year that has influenced overall tourism revenue figures.

Climate crisis: A key concern for tourism’s future

Looking ahead, Thanos identified the climate crisis as one of the greatest risks facing the tourism sector, surpassing concerns related to geopolitical instability or security threats. He emphasized that future tourism strategies must address the potential impacts of climate change to ensure the industry’s long-term viability.

Demographic challenges impacting Greece’s labor market

In response to a question linking tourism’s future to Greece’s declining population, Thanos noted that this demographic issue poses a serious challenge for both the country’s society and economy. He highlighted its impact on the labor market, citing that approximately 50,000 job vacancies were recorded during the last tourism season, a clear indication of labor shortages in the sector.

ELSTAT: Greeks still prefer domestic holidays

Hellenic Statistical Authority (ELSTAT) President Athanasios Thanopoulos. Photo source: ELSTAT

During the same panel, Athanasios Thanopoulos, President of the Hellenic Statistical Authority (ELSTAT), provided insights into domestic tourism trends.

When asked about the relationship between domestic and inbound tourism, and whether Greeks prefer to vacation in their own country, Thanopoulos confirmed that the majority of tourists in Greece are indeed Greek.

“Although Greek tourists may not always appear in hotel traffic surveys, many (around 55-58 percent) stay in non-commercial accommodations, such as their own summer homes or those of friends,” he explained.

Citing ELSTAT’s “Holiday Survey,” Thanopoulos said that most Greek residents choose to vacation domestically. “The only year we saw a significant rise in Greeks vacationing abroad was between 2021 and 2022, due to the effects of the COVID-19 pandemic,” he said. “However, even this year, most Greeks opted to holiday within Greece.”

The 5th Olympia Forum, held in Ancient Olympia from October 18-20, focused on the theme “Empowering Cities & Regions.” It was organized by the Patris newspaper in collaboration with the Delphi Economic Forum.