Greek Tourism: Athens is heating up, but hotel performance lower than 2019

With a drop of 33.6% in occupancy, 36.3% in revenue per available room (RevPar) and 4.1% in the average room price  the first 4 months of 2022 (January – April) “closed” for hotels in and around Athens, compared to the corresponding four months of 2019 – the most recent “normal” tourist year for the hotels of Athens.

According to the data of the Athens, Attica and Argosaronikos Hoteliers Association (EXAAA), during the first four months of 2022, the average occupancy was 44.9%, the average room price 85.08 euros and the RevPAR 38.2.

Average occupancy gradually increased from 26.9% to 50% in the first quarter, while in April it reached 65%. However, it remained 19% lower than in 2019 (which was 80%). The decrease of RevPar in the first 4 months of 2022 (by 36.3% compared to 2019) is mainly due to this fact, ie the low occupancy levels during the first three months of 2022.

Overall, the YTD April occupancy levels were 33.6% and room rates 4.1% lower in 2022 compared to the corresponding period of 2019.

In addition, corresponding performance is recorded by the research-panel of the Association conducted nationwide, in terms of Athens, where during the period December 2021-April 2022 the average occupancy did not exceed 39% in the open hotels of Attica and 36.7 % in all hotels of Attica. The average room price was around 77 euros.

Any comparisons with the data of 2021-2020, therefore, do not lead to correct conclusions, as they compare the performance of 2022 with the performance of years during which, for short or longer periods, many – or all – hotels remained closed.

Other Urban Competitors

The above picture for 2022 is reinforced by the data of the competing cities of Athens, which are also interesting, according to EXAAA.

During the period January – April 2022, it is noted that all competing Mediterranean cities such as Rome, Barcelona, ​​Madrid and Istanbul recorded higher levels of occupancy and room rates than Athens. More specifically, Rome achieved fullness of 47% and ADR 149 euros respectively, Barcelona 55% and 124 euros, Madrid 56% and 116 euros and Istanbul f64% and ADR 97 euros compared to Athens which had fullness 45% and ADR 85 euros.

Concern about oversupply of beds

According to EXAA, the estimates and forecasts for the course of this summer tourist season can be really positive, however, hoteliers remain moderately optimistic as it is too early for conclusions regarding the autumn and winter ahead: Reservations are still very low. It is not yet certain whether conferences – which are a key part of the efforts to extend the tourist season – will be implemented. The oversupply of beds of all kinds that ‘open’ and are announced on a daily basis, can only worry hoteliers.

Uncertainty for winter and “thorns”

The country’s tourism will clearly show once again its ability to recover and lead the “train of development”, it is pointed out.

The hotels of Athens, however, did not experience in 2021 – as happened in most of the urban centers of Europe – the sharp recovery of holiday destinations, which took advantage of the need and the opportunity for Europeans to travel after 15 months of closure, states the Association.

The delay in the recovery of the markets for business trips, conferences and city breaks, forced the hotels of Athens to operate with extremely low occupancy throughout the winter and with extremely increased operating costs. The Associaition stressed that Athens is one of the few – if not the only – European capital that: Has not regulated the issues of “sharing economy”, does not have a Metropolitan Conference Center of international standards and will ply its course facing the “bill” of the pandemic, the increased costs of operation and supplies and the flourishing of the “para hospitality sector” (which as we know is not subject to health regulations, rules of gathering of the public, to tax charges, to insurance charges, etc.).