Southern Europe: Greece Sees Third Largest Surge in Foreign Visitors in Jan-July

From January to July, Greece saw the third-largest increase in international tourism arrivals in Southern Europe, according to a report by the European Travel Commission (ETC) released recently.

The European Tourism Trends & Prospects Q3 2024 report provides insights into European tourism performance during the summer and a detailed analysis of recent trends and macroeconomic developments.

Regarding European tourism, the report highlights a 6 percent increase in foreign arrivals compared to 2019 levels and a 7 percent year-on-year growth. Overnight stays have also grown by 5 percent year-on-year.

Source: ETC

“The performance of European tourism in 2024 underscores the sector’s resilience and enduring appeal despite economic pressures,” said ETC President Miguel Sanz.

As highlighted in the report, demand variations persist among European source markets, influenced by seasonality. Southern European destinations, such as Greece, tend to outperform others in summer.

A significant shift compared to the ETC’s previous quarterly report is the movement away from Türkiye towards Mediterranean competitors, including Greece. This change is attributed to inflation eroding Türkiye’s affordability edge, compounded by the Turkish lira’s lack of a dramatic devaluation.

Greece’s robust tourism growth

Source: ETC

In the first seven months of the year, Greece (along with Portugal) saw a 19 percent increase in foreign visitor arrivals compared to 2019, ranking behind Malta (+32 percent) and Serbia (+34 percent).

Greece also recorded a 15.4 percent rise in flights from June to August compared to the same period in 2019, indicating a successful extension of demand into the shoulder season.

Source: ETC

Moreover, the report mentions that Greece has seen a significant rise in tourism spending, with a 20 percent increase in spending compared to five years ago.

Germany (34.1 percent), France (30.9 percent), and the United States and United Kingdom (each over 30 percent) remain the largest sources of tourists, underscoring Greece’s enduring popularity, especially in the summer.

Challenges in European tourism

Air Traffic Disruptions

Despite a 3.4 percent increase in European air travel, air traffic disruptions due to cybersecurity issues and strikes continued to impact travel, particularly during peak periods.

“The impact across countries has varied considerably, with tourists travelling through Germany and Greece facing some of the worst delays,” the report noted.

Nearly 40 percent of passengers in Europe experienced delays or cancellations this summer, with 50 percent of those traveling to Greece between June and August affected.

Overtourism

The report addresses the growing issue of overtourism, with popular destinations facing capacity constraints and environmental strain, especially during peak seasons.

Island destinations, including Greece, are particularly vulnerable due to limited ability to accommodate large numbers of tourists.

According to the ETC, Santorini serves as a key example: “Santorini, an island off the coast of Greece, has seen a significant influx of visitors as it has emerged as a (no longer) ‘hidden gem’, with the mayor calling to halve cruise ship visitors and cap bed nights on the island below their present level.”

Some Greek cities and islands, as well as Italian destinations, have implemented policies to help manage overtourism by limiting visitor numbers and imposing tourist taxes.

Additionally, the report notes a growing trend of tourists opting for lesser-known destinations to avoid overcrowded spots, with Albania sometimes chosen over Greece and Vilnius or Bucharest over Barcelona or Venice.

“Following a busy summer, Europe is actively addressing capacity constraints in popular hotspots by redistributing visitors to more diverse destinations,” said ETC President Miguel Sanz. “We aim to alleviate the strain on overburdened areas and ensure that the economic benefits of tourism are shared more equitably. European tourism is not just about rebounding; we need to evolve to secure a sustainable future.”

Extreme heatwaves threaten tourism

The climate crisis remains a growing concern for the tourism industry. Mediterranean destinations, including Greece, Croatia, and Albania, faced extreme heatwaves with temperatures exceeding 40 degrees Celsius.

“These heatwaves led to safety measures such as the closure of popular tourist sites like the Acropolis in Athens during the hottest parts of the day,” the report noted.

Greece among the leaders in short-term rentals

Source: ETC

The ETC report also highlighted the rapid growth of short-term rentals in Europe, with Greece among the top 10 countries in units.

France leads with over 1.1 million short-term rental properties, followed by Italy with 683,000.

Greece ranks alongside Spain, the UK, Germany, Croatia, and Poland, with more than three-quarters of Europe’s supply concentrated in these eight countries.

The ETC represents the national tourism organisations of Europe. Established in 1948, ETC’s mission is to strengthen the sustainable development of Europe as a tourist destination and to promote Europe in third markets.