INSETE: Greece Matches Spain in Tourism Spending Per Capita

The Acropolis, Athens, Greece.

Greece is competing on equal footing with other Mediterranean destinations in terms of tourism spending, with European tourists often spending as much, or even more, than those visiting global tourism powerhouse Spain.

According to a recent study by INSETE, the research arm of the Greek Tourism Confederation (SETE), Greece has made significant strides in increasing the Average Per Capita Expenditure (APE) of its tourists over the past six years.

INSETE’s study also reveals an important distinction in the source of tourism. Approximately one-third of Greece’s tourism in 2019, and nearly a quarter of tourism in 2022 and 2023, came from neighboring Balkan markets, where Gross National Income (GNI) is lower than other European regions. In contrast, Spain has a stronger presence in long-haul markets such as Latin America and Asia, where tourists tend to have a higher GNI.

The data from the study, titled “The Average Per Capita Spending of Incoming Tourists in Greece and Spain (2018-2023)”, shows that during the pandemic, Greece’s tourism sector even outpaced Spain in terms of APE. This could be attributed to the collapse of demand for Spanish holidays from Latin American and Asian markets and Greece’s successful reopening during the COVID-19 crisis, which attracted higher-spending tourists. However, as tourism returned to normal, the spending difference reverted to pre-pandemic levels, favoring Spain.

Differences in methodology between Greece and Spain

The National Museum of Art of Catalonia, Barcelona, Spain.

One important takeaway from the INSETE study is that comparing the APE figures between Greece and Spain directly is misleading due to differences in how the data is measured. For example, in 2023, Spain’s APE was reported at 1,277 euros, while Greece’s was 603 euros.

According to INSETE, the disparity arises from the differing methodologies:

Source: INSETE

In Greece, only the spending that stays within the country is counted, excluding the cost of flights or ferry tickets, even if the airline or ferry company is Greek. The figures also include tourists who do not stay overnight and workers crossing the border daily.

In Spain, the total spending by tourists is calculated, including third-party costs such as airline tickets and intermediary commissions, and only tourists who stay at least one night are counted.

After adjusting the data to account for these differences, the comparison shows that Greece’s average spending per capita was higher than Spain’s in 2020 and 2021 by 41 euros and 72 euros, respectively.

However, the adjusted figures for 2022 and 2023 show tourist spending in Greece less by 39 euros and 47 euros compared to Spain.

Ultimately, once the tourism market returned to normal, Spain regained its position, with the adjusted figures returning to pre-COVID levels in its favor.

Trends in Greece’s tourism spending over the last decade

Shopping in Athens. Photo source: Visit Greece

INSETE also examined Greece’s tourism spending trends over the last decade, from 2014 to 2023, in a study titled “The Average Per Capita Expenditure of Incoming Tourists in Greece 2014-2023”.

In 2014, the Average Spending Per Capita was 590 euros, rising to 603 euros by 2023 — an increase of 2.2 percent.

According to INSETE, this modest rise can be attributed to a 17 percent reduction in the average length of stay, which was offset by a 23.1 percent increase in the Average Spending Per Night.

INSETE said that several factors contributed to the growth in APE, especially from 2021 onwards as the travel industry began to recover:

– Inflation, which led to higher tourism package costs compared to pre-pandemic levels.
– A rise in summer holiday trips, which tend to have longer stays and higher expenditures.
– An increase in visitors from traditional markets such as Germany, the UK, France, Italy, and the Netherlands, whose travelers typically spend four times more than tourists from the Balkan region.
– A decline in tourists from the Balkan and Eastern European markets, whose lower average spending and shorter stays contribute less to the overall APE.