Athens-Attica Hotels Report Positive Growth in October 2024

After five months of declining hotel occupancy, Athens and Attica experienced a 2.2 percent increase in demand for hotel rooms in October 2024 compared to the same month in 2023. This positive trend has contributed to an overall increase of 1.6 percent in occupancy for the first ten months of 2024.

According to the Athens-Attica & Argosaronic Hotel Association, the average room rate in October 2024 also showed a significant improvement, rising by 9 percent compared to October 2023. Over the ten-month period, the average room price increased by 8.9 percent.

Athens compared to other European destinations

In terms of occupancy, Athens recorded a 2.2 percent increase in October 2024. When compared to other major cities, Madrid saw a 3.1 percent increase, Rome 3.3 percent, and Istanbul 9 percent. Conversely, Barcelona experienced a 3.7 percent decrease in hotel occupancy.

Regarding average room rates (ADR), Athens recorded a 9 percent increase in October 2024 compared to the same month in 2023. In comparison, Madrid’s average room rate rose by 5.2 percent, Rome by 2.7 percent, while Istanbul and Barcelona maintained their prices at similar levels.

Over the first ten months of 2024, Athens’ occupancy grew by 1.6 percent, while Madrid and Istanbul showed stronger growth at 4.7 percent and 6.6 percent, respectively. Rome and Barcelona experienced stable occupancy rates. In terms of ADR, during January-October, Athens posted an increase of 8.9 percent, while Madrid saw a more significant growth of 14.5 percent, followed by Barcelona at 8.1 percent. Rome had a modest increase of 1.4 percent, while Istanbul saw a decrease of 7.6 percent.

Athens gaining popularity

In its announcement, the association said that Athens is experiencing a surge in popularity, significantly improving its competitive position relative to other European destinations. This trend has a positive effect on demand, competitiveness, prices, and revenues, benefiting both the city and the state.

“However, it is important to ensure that this progress is preserved and further strengthened,” the association noted.

The Athens-Attica hotel association attributes the growth to the resilience and perseverance of the hotel and tourism sectors, which weathered numerous crises. It also calls for the state to return a portion of its tourism-related revenues to businesses and destinations to support further growth.

Concerns about rising fees and tax measures

Moreover, in its announcement the Athens-Attica hotel association expressed concerns over the increasing municipal fees, such as the stayover duty in Athens, as well as the rise of the to climate resilience fee.

According to the association, while these fees are intended to support the sustainability of the tourism sector, they should also “be balanced with reciprocal benefits” for hotel businesses.

Furthermore, the association pointed out that the Greek government’s proposed tax bill, which includes an increase in the climate resilience fee, could lead to expected revenue from hotels.

“However, it is unclear how much will be collected from rooms to let and short-term rental properties, which could potentially affect the overall financial picture,” the association noted.

The association concluded its announcement by noting that, by the end of 2025, there will be a comprehensive review of both “the revenues generated from these fees” and “the progress of the projects aimed at addressing urgent issues”, such as natural disaster prevention and recovery, climate change adaptation, and the improvement of infrastructure to sustain the country’s tourism sector.

“This review will determine how these funds are being utilized as outlined in the proposed legislation,” the Athens-Attica hotel association said.