SETE Identifies Four Priority Areas to Strengthen the Greek Tourism Sector

Greek Tourism Confederation (SETE) President Yiannis Paraschis on Thursday underscored the significance of tourism as a cornerstone of Greece’s economy, a source of prosperity, and a driver of social cohesion during his opening address at the organization’s annual conference, held under the theme “Shaping the Future of Tourism”.

During his speech, Paraschis outlined four key priorities essential for ensuring the sector’s long-term growth and resilience: the implementation of effective spatial planning, the regulation of short-term rentals, a balanced taxation framework, and improved access to financing for tourism enterprises.

Positive tourism performance in 2024

In the beginning of his speech, Paraschis highlighted the resilience of Greek tourism in 2024, which achieved steady growth despite geopolitical instability and economic challenges across Europe. He noted that, according to data from SETE’s research arm, INSETE, and the Bank of Greece, tourist arrivals increased by 9.3 percent during January–September 2024. Revenue growth, while slightly lagging behind arrivals, was still 4.1 percent higher than in 2023.

“The contribution of tourism to the Greek economy remains vital,” Paraschis emphasized. Tourism directly contributes 13 percent to Greece’s GDP and indirectly accounts for up to 30 percent. Additionally, travel receipts cover 63.8 percent of the country’s trade deficit — a persistent challenge for the economy.

He also highlighted that tourism investments in 2023 reached 5.1 billion euros, nearly double the levels of 2019. These investments are essential in addressing Greece’s structural investment gap and driving the sector’s modernization.

Broader trends in Greek tourism

Paraschis pointed to several evolving trends that are shaping the sector. Notably, off-peak months have seen significant improvements in arrivals and travel receipts, which bodes well for Greece’s efforts to extend the tourism season. He also noted that travelers increasingly prioritize authentic experiences, sustainability, and high-quality services.

“Consumers are more sensitive to the value-for-money proposition of tourism offerings,” he said, citing visitor behavior during peak summer months and in popular Cycladic destinations.

However, Paraschis cautioned against complacency, emphasizing that the industry must not take post-pandemic growth for granted. He called for institutional reforms and strategic initiatives to ensure the sector’s sustainable development.

Addressing key issues in Greek tourism

Paraschis highlighted four critical areas requiring attention to safeguard competitiveness and foster a favorable investment climate: spatial planning, short-term rental regulation, taxation, and access to financing for tourism businesses.

1. Spatial planning 

Spatial planning, which involves the organized and efficient use of land to balance development and conservation, is essential for attracting investments, ensuring legal certainty, and curbing illegal construction. Paraschis acknowledged progress made with the recent consultation on Greece’s Special Spatial Framework for Tourism but stressed the importance of finalizing and implementing the plan.

“A spatial plan with some shortcomings is better than no spatial plan at all,” he said.

2. Regulating short-term rentals

Paraschis recognized the opportunities created by the rise of short-term rental properties but also highlighted challenges such as unfair competition, housing market distortions, and overcrowding in certain destinations. He commended recent legislative efforts, including a clear taxation framework and operational regulations, while urging authorities to ensure robust enforcement mechanisms.

3. Taxation

Taxation remains a sensitive issue for the sector, Paraschis said. He criticized the recent increases in tourism-related fees, such as the climate resilience fee, which replaced the overnight tax, and the stayover duty, which the municipalities are allowed to raise.

“Tourism cannot bear the financial burden of addressing natural disasters or other national challenges alone,” he stressed, advocating for a comprehensive review of taxes and fees. He also called for greater transparency, emphasizing that revenues from such measures should directly fund infrastructure upgrades and destination improvements.

4. Access to financing

SETE’s president highlighted that the high rejection rate — approaching 90 percent — for development plans submitted by tourism businesses in recent financing programs is a major concern, particularly for small and medium-sized enterprises (SMEs). Paraschis called for a revision of these programs to facilitate the transition of tourism businesses toward green and digital operations.

Labor market and DMOs

Paraschis also applauded recent labor market initiatives, including the implementation of the Digital Work Card, which promotes transparency and better management of working hours. He also called for intensified inspections to ensure compliance with labor laws and support sound entrepreneurship.

Turning to destination management, Paraschis noted the slow progress in establishing effective Destination Management Organizations (DMOs). He urged the government to institutionalize DMOs, secure funding, and involve the private sector to ensure that destinations remain attractive for both residents and visitors.

SETE’s annual conference aimed to explore emerging trends, address pressing challenges, and highlight opportunities for transitioning Greece’s tourism sector toward a sustainable and inclusive development model. It also sought to foster productive dialogue among state authorities, local governments, and the private sector.