Hospitality Industry Challenges Highlighted at Hellenic Chamber of Hotels Assembly

The evolving challenges faced by the hospitality industry, both globally and in Greece, were the focal point of the 12th General Assembly of the Hellenic Chamber of Hotels (HCH), held in Athens on Saturday.

Addressing the assembly, HCH President Alexandros Vassilikos underscored the urgent need for proactive measures to ensure sustainable growth and bolster Greece’s standing as a premier global tourist destination.

“Over the years, we have achieved significant milestones, positioning Greece at the forefront of the global tourism market. Greek hoteliers, with their swift adaptability and resilience, have been instrumental in these successes,” said Vassilikos.

However, he emphasized the many challenges ahead, including the climate crisis, sluggish economic growth in Europe, geopolitical instability, escalating energy costs, and persistent issues with infrastructure.

Legal action against ‘digital giants’

Hellenic Chamber of Hotels President Alexandros Vassilikos.

In a landmark move, Vassilikos announced plans by Greek hoteliers to pursue class-action lawsuits against Booking.com over rate parity clauses.

“It’s time for collective action to address the challenges posed by digital giants and restore fairness to the hospitality sector,” he declared, receiving resounding applause from attendees.

Barriers to investment

The assembly also brought attention to the rejection of 81 percent of funding applications submitted by the sector under Greece’s Development Law. Vassilikos criticized the disparity, stressing, “We cannot aspire to make Greece a leading global tourism destination while excluding the hotel sector from essential financial support. This contradiction undermines logic itself.”

Infrastructure concerns

Photo © Greek Travel Pages (GTP)

In his speech, Vassilikos called for a renewed focus on critical infrastructure development, highlighting the ongoing lack of progress on key projects like a Metropolitan Conference Center in Athens. He also pointed to basic issues such as water supply and waste management. “Despite the exorbitant fees we pay, we see little return in terms of practical improvements,” he noted.

Overtourism

Addressing the topic of overtourism, Vassilikos warned against narratives that foster “anti-tourism” sentiment.

“Overtaxation and misplaced blame on hotels are eroding our competitiveness,” he said. “We must shift public discourse toward meaningful solutions.”

Hatzis: Discussions on overtourism are ‘dangerous’

Hellenic Hoteliers Federation President Yannis Hatzis echoed Vassilikos’ concerns, warning about the “dangerous discussions” surrounding overtourism. He emphasized that such narratives unfairly tarnish Greece’s reputation when what is urgently required is a forward-looking, development-oriented strategy and modern, resilient infrastructure.

Hatzis stressed that the hotel industry should not be treated merely as a “revenue generator for the state” or linked to broad societal challenges like the climate crisis, which it neither creates nor can solve on its own.

Hellenic Hoteliers Federation President Yannis Hatzis. Photo © Greek Travel Pages (GTP)

“We must stop stepping on the gas where we should be braking and stepping on the brakes where we should be accelerating,” Hatzis remarked, using a metaphor to critique the mismanagement of tourism-related policies. He explained the need for more deliberate, strategic action: avoiding unrestrained growth in areas already under pressure, while fostering development in regions or sectors that require support to reach their potential.

Hatzis further called for greater inclusion of the industry in decision-making processes. “As a federation, we are absolutely clear in the message we send in every direction: the industry cannot stand decisions that concern it at the central and local level continuing to be made in our absence. “We believe in dialogue, we believe in cooperation, and that is precisely why we are not going to tolerate any more surprises or unilateral decisions presented to us as final,” he asserted.

“Hospitality with Value for All” initiative

Looking ahead to 2025, Vassilikos announced a year-long initiative titled “Hospitality with Value for All,” marking the chamber’s 90th anniversary. “This initiative will showcase the essential contribution of Greek hotels to sustainable and socially inclusive development through a series of actions across both central and regional levels,” he said.