Greek tourism is ready to conquer new heights this year, but behind the fancy showcase there are also some… skeletons in the closet.
The messages from arrivals and receipts are positive, but the limited purchasing power of tourists forces them to cut unnecessary expenses with hotels and catering to pay for the marble, while operating costs are constantly climbing, tightening the rope in the tourism industry.
Ahead of new records
Greece is hitting new tourism records, eyeing new highs this year.
It is worth noting that travel receipts reached the ceiling of 20.5 billion euros in 2023, according to the data of the Bank of Greece, which certify that Greek tourism raised the bar even higher last year, breaking the record of 2019 .
More specifically, travel receipts amounted to 20.459 billion euros, i.e. approximately 12.7% above the 18.151 billion euros of 2019.
This year, Greek tourism with broken brakes is heading for +10% in revenue (ie around 22.5 million euros) while estimates want arrivals to reach 35 million visitors (from 32 million in 2023).
August of 90%
In this context, Crete, Dodecanese and Halkidiki record occupancies of 90-95% for August, while the Cyclades move at lower speeds (with Santorini, Mykonos losing ground paying for the negative advertising), Peloponnese, Ionian Islands and Pieria.
Season extension
According to INSETE’s Airdata Tracker data, the increase in scheduled seats for international flights to our country reaches 8.2% compared to 2023, with 53% of this increase in the third quarter of the year. It is a positive fact that tourism seems to be slowly but surely winning the bet of extending the season with the picture from the pre-bookings for September and October allowing for optimism.
In general, as noted by tourist agents in the “Economic Mail”, this season is characterized by… restraint in tourist spending.
The price increases do not translate into increased profitability for the hoteliers, at a time when operational and salary-wise they are taking the uphill, putting a suffocating pressure on the financial figures in many cases. At the same time, Airbnb is also an additional lever of pressure.
The performance of short-term rental accommodation, which now attracts a large share of tourists, competes fiercely with hotels.
In this context, Mykonos (-12.1%) and Santorini (-7.2%) are moving downwards in the second quarter of 2024 compared to the corresponding period of 2023, according to ELSTAT data, as accommodation and businesses restaurants on two of the most popular Greek islands are losing steam with turnovers plummeting.
They spend less
Based on figures from the Central Bank of Greece, the average expenditure of tourists in Greece in May decreased by 12.2%, while at the five-month level it was observed to decrease by 3.6% compared to last year. The drop in average spending is inevitably linked to price increases in accommodation and catering, which are even more felt in the wallet of tourists.
Like Halkidiki… it doesn’t have
In accommodation, the largest increase in turnover in the second quarter of 2024 compared to the second quarter of 2023 was observed in the Regional Unit of Halkidiki (20.4%), based on ELSTAT data.
A similar picture in focus as the largest increase in turnover second quarter 2024 compared to second quarter 2023 was recorded in Halkidiki (25.2%)
In this context, the booking messages for August allow for smiles although the full picture will become clear towards the end of the month, as long as there are no unforeseen events that disrupt the country’s heavy industry.
Based on the data so far, occupancy rates in the hotels of Halkidiki during this season are expected to fluctuate at the levels of 2023, with strong cards for the Balkan region, but without missing other nationalities as well. Greeks, traditionally, start to gather from the end of July, with August being the best holiday month.
Romanians, Bulgarians, North Macedonians and Serbs choose Halkidiki for their holidays traveling by road, while in terms of air arrivals the Germans, the English, the Poles and the Dutch dominate (up 10%-12% on an annual basis).
High occupancies but also a vertiginous jump in costs
“This year is very similar to the 2023 season, we started with 65% occupancy in May, they went up to 75% in June, in July they touched 80% and in August they are around 95%. For some businesses, the performance may be below last year’s Grigoris Tassios, president of the Halkidiki Hotel Association, points out to the “Economic Post”.
Occupancy for September is close to 65% with upward trends, according to Mr. Tassios, while for October close to 50% with an upward trajectory. “Accommodations are faced with a large increase in operating costs at a time when interest rates have jumped from 3% in 2019 to 7.5-9% this year,” notes the president of Halkidiki hoteliers.
It is estimated that accommodation prices, compared to last year, have increased by 10% in order for hotels to cover the operating costs which are quite high, while the focus is trying tooth and nail to limit the increases which are moving around 10 %.
Reservations at and five
In any case, many times the last-minute bookings that hoteliers traditionally rely on, especially after the pandemic, determine the… score that will be written in the final batch and whether the season will be profitable or loss-making.
Source: ot.gr
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