For the second month in a row, and in August, tourism and especially receipts appear reduced compared to the same month last year as announced on Monday, October 21, by the Bank of Greece.
After July when tourist receipts were down by 4.2% compared to July 2023 although arrivals were up by 4.1%, August followed with a 1.8% decrease in revenue compared to the same month last year, despite a 6.6% rise in arrivals.
Concerns about tourist receipts
The repetition of the trend is troubling as it is no longer an isolated phenomenon.
It is obvious that it deserves special attention and study. The question is whether it reflects some new trends in tourism, whether these only concern our country or is a wider phenomenon, or finally it is simply a peculiarity that concerns the current situation, shaped by the economic reality experienced by the countries from which where the largest number of tourists come from (Great Britain, Germany, France, etc.)
The data of TtE
According to the data of the Bank of Greece this year in August the collections were 78.6 million euros less than those of August 2023 and specifically 4.249 billion euros against 4.328 billion euros (-1.8%). The decline was recorded despite non-resident traveler arrivals increasing by 6.6%.
Overall, however, in the eight months of January and August, travel receipts amounted to 15.179 billion. euros against 14.703 billion euros in the eight months of 2023, marking an increase of 3.23%.
This means that in order to “reset to zero» this year compared to last year any increase in receipts should for the rest of the year tourist spending fall by more than 476.1 million euros, which is the difference this year compared to last year in the eight months. Given that last year from September to December the tourist receipts were 5.694 billion. euros, a decrease of 476.1 million euros means a drop in receipts in the next four months by 8.22%.
This is an inconceivable drop that cannot happen as tourism factors estimate, and therefore we can reasonably assume that, barring a shocking prospect, the new record in receipts for 2024 is a given, even if “breathing” in the last four months. September, however, will be a pivotal month for the course of revenues to see “if the worst is over” or if the downward trend will be reversed.
The seven reasons
But the question why arrivals decreased in July and August is still looking for answers.
A decrease that was also noted is that this development is recorded when according to ITEP data the average occupancy of hotels in August was slightly increased to 87.6% against 86.1% in the same month of 2023, while the average price of a double room in August 2024 it was at 187 euros compared to 153 euros last year in the same month (an increase of 22.2%).
As they note tourism factors, the reasons are many. Among other things:
- The drop in tourist spending apparently concerns spending outside of hotel stays, as reflected in the “complaining” of restaurant owners in tourist destinations, who talk about a decrease in revenue.
- The drop in spending is also related to the huge growth of short-term rental accommodation in which the total expenditure is lower compared to hotels and their tenants prefer to buy food items from supermarkets and cook at the accommodation rather than visiting the restaurants.
- It is now a fact that tourists this year are tighter than other years, due to the general economic situation of the countries they come from, while
- Higher airfares reduce a tourist’s overall budget left for accommodation and dining.
The president of SETE
It is recalled that recently the President of SETE, Mr. Yiannis Paraschis, commenting on the drop in revenues in July, noted among other things that “it makes no sense to over-interpret the figures of a single month. In order to draw any conclusions, we will have to wait for the overall results of the third quarter.”
He then made a series of estimates that go some way to explaining July’s picture, citing INSET data that captures some broader trends:
- On the one hand, travelers now tend to choose more but shorter trips, with the average overnight stay falling from 7.5 to 6.6 days. The increase in city breaks outside the peak summer season contributes to this reduction.
- On the other hand, the increase in inflation and the decrease in disposable income affect travel spending, both in Greece and in the markets of origin.
- In addition, the significant growth of road tourism this year, which in the first eight months grew by +14% compared to +8% by air, and which has a shorter duration and lower receipts per trip, also contributes to this trend.
Source: ot.gr
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