After the quarantine, the great anxiety for tourism was whether it would manage to achieve 50% of the performance of 2019. From the middle of the summer onwards, the anxiety had changed. It was about whether the infrastructure in the tourist areas will last or not.
In all popular areas, infrastructure has reached its limits. In some, even in tourism “flagships” such as Mykonos, they overcame them. Sewerage networks became clogged. Water for each use was depleted. Power consumption broke every record. Roads to beaches were flooded with cars. The parking lots in the tourist areas proved to be extremely small for the volume of visitors. Coastal ships and ports were unsuitable to bear the burden of a – compared to 2019 – mediocre year. Mostly the country’s state infrastructure seemed too weak to keep up with the huge private sector investments. Greek and foreign tourists came out of the well-preserved accommodation for a walk, a swim, a meal and were faced with incredible tribulations.
The “mystery” was that all this was happening despite the fact that the size of tourism this year was lower than that of 2019. Making a reduction with the pre-COVID sizes, one would reasonably wonder what would have happened if we had done better. If we had a normal year. Others would say that the cause of the phenomenon is the sudden and massive “letting off steam” of the Greeks. But again this does not fully explain it.
A 2013 study by McKinsey on behalf of SETE predicted an 8-year increase in arrivals to 24 million tourists and revenue to 19 billion euros. The first goal was achieved in 2019, the second we never managed to reach, as every year the number of tourists increased, but the per capita tourist expenditure decreased. More were coming, each spending less each year. The danger of the massification of tourism was becoming a reality. The rich turned their backs on us.
The 2013 study set an important condition for attracting “fat wallets”: the implementation of investments of 3.3 billion euros per year, for the creation of new state (marinas, roads, etc.) and private infrastructure (hotels, etc.). In retrospect we can say with confidence that a large part of private investment (mainly in new hotel units) has become a reality. On the contrary, only a small part of the state investments in infrastructure were realized.
As a result, in the first year that due to the current situation the trend changed and wealthy tourists – certainly of a higher income level than in the past – chose Greece for holidays, the problem “emerged”. You see, affluent tourists do not flock in groups to a place like mass tourism customers do. They do not want to spend all day in the pool of the hotel they booked, but they visit many different places. They eat in restaurants, even expensive ones, and avoid the cheap all inclusive packages inside the hotels.
The season that ends in a few weeks showed that the customers of Greek tourism have changed, at least for this year. The ones we have been aiming for for a decade have come and we have proved to be unprepared. Now is the time for decisions. If we want the tourists of 2021, then we will have to invest in a large-scale renewal of infrastructure. Otherwise, the recovery will find us again with “cheap” mass tourism.
Latest News
ELSTAT: Greek Health Expenditures Reach €5.89 Billion in 2022
Finally, healthcare financing as a percentage of GDP decreased to 8.5% in 2022 from 9.18% in 2021, as per the Health Accounts System report.
Sonoco Paper Mill Plants Close After 30 Years in Greece
The shut down of the two paper mills in northern Greece comes a week after a glass plant closed in Athens
BoG: Private Deposits Down by 1.068bln Euros in Feb. 2024
Corporate deposits decreased by 912 million euros, compared to a decrease of 3.167 billion euros in the previous month
Greeks’ Buying Power Second Lowest in the EU
Greeks’ purchasing power is under pressure, ranking 26th among 27 EU member states.
Greek FinMin Says Digital Work Card Tackling Undeclared Work
Greece's recently launched digital work card aimed at tackling undeclared labor has already started to produce results, said Economy and Finance Minister Kostis Hatzidakis
MSC Cruises: More than 400 Visits to Nine Greek Destinations
MSC Cruises, a subsidiary of international shipping line Mediterranean Shipping Company S.A, will be sailing to Greek ports as of this month, expanding operations in the region year-round
Eurostat: Greece Among Cheaper Hourly Labor Cost Zones
In contrast, the countries that posted the highest hourly labor costs are Luxembourg (53.9 euros), Norway (51.9 euros), Iceland
GSEVEE: Economic Sentiment Indicator in Greece Down in Q2 2023
The drop follows a significant uptick in the ESI in the second half of 2022 (69.5 units) and a slight decline in the first half of 2023 (66.7 units)
Manpower Report: Sectors in Greece that Have Achieved Full Gender Equality in the Workplace
Greece surpasses this with 45%, showcasing progress but also room for improvement. Sectors like Consumer Goods and Services lead with 69% reporting full equality globally
Bank of America (BofA): Three Reasons Greek Economy Outperforms EC Average
BofA projects growth of 1.1% in 2024 and 1.7% in 2025, compared to forecasts for eurozone growth at 0.4%/1.1%, respectively