Despite the positive performance of the Greek economy, with a gradual decline in unemployment and an increase in employment, the tourism sector continues to face serious challenges that may affect its long-term dynamics.
As recorded in the 57th issue of the magazine “Economic Developments” of the Center for Planning and Economic Research (KEPE), the phenomenon of increasing job vacancies in tourism is taking on alarming proportions.
- In short, the lack of workers is becoming the “Achilles Heel” of Greek tourism.
Characteristically, job vacancies in the accommodation and catering services sector (tourism) – their percentage has always been higher than the average – have almost doubled in one year. From a percentage of 4.2% in 2023, they reached an impressive 8% a year later, which is almost doubled. This indicator is more than double the European average and more than triple the indicator for the business economy as a whole.
Correspondingly, in the first quarter of 2025, the data show an increase in job vacancies in Greece, although as a percentage, they remained close to the European average. However, while job vacancies are estimated at less than 69 thousand in the business economy, individual estimates speak of 80 thousand vacancies in tourism alone.
The phenomenon of increasing job vacancies, especially in tourism, points out KEPE, demonstrates structural weaknesses in the matching of supply and demand in the labor market, and, as it underlines, has significant implications for the dynamics of the country’s tourism product, in a period in which competition between destinations is intensifying.
Apparent slowdown in the growth of tourism receipts
At the same time, the volatile international environment and the uncertainties stemming from geopolitical tensions and evolving international trade disputes have visible effects on indicators of the Greek economy that mainly concern export and investment activity, without, however, causing, for the time being, significant deviations from the steady upward trajectory of economic activity in the country. The marginal decline in services exports in the first quarter of 2025, and in particular the pressures on transport receipts, combined with the apparent slowdown in the growth of tourism receipts, are likely related to the deterioration in the prospects for the European economy and international trade, due to the instability prevailing in international trade relations.
At the same time, the slowdown in major euro area economies, rising trade barriers, and the escalation of regional conflicts may weigh on exports, tourism, and foreign direct investment.
Golden Visa boosts property prices in Athens, Mykonos, and Santorini
In terms of foreign investment, the implementation of the “Golden Visa” program, which was adopted by the Greek government in 2013, led to rising residential property prices.
In the years that followed, demand for housing from foreign investors skyrocketed, accelerating property transactions and pushing up house prices. This trend took on large dimensions, particularly in large cities such as Athens and in popular tourist destinations such as Santorini and Mykonos.
Foreign direct investment from countries outside the European Union (EU) increased, especially immediately after the implementation of the program, reaching an average of 70% of total foreign direct investment.
According to data from the Bank of Greece, net foreign direct investment in Greece has been on an upward trajectory, recording a significant increase to high levels after 2017, from less than 500 million to around 2.75 billion euros in 2024, recording a decrease in 2020 due to the effects of the pandemic crisis.
Data for 2023 show that almost 30% of net foreign direct investment was directed to the real estate market for that year, with the manufacturing and financial and insurance sectors following with percentages of 14.2% and 9.1%, respectively.
The main advantage of the “Golden Visa” is that it provides a five-year residence permit in Greece to non-EU residents, provided that they invest at least 250,000 euros in the Greek real estate market.
However, from 2024, the limits for granting a “Golden Visa” were modified as follows:
investment of at least 800,000 euros for the region of Attica, the regional units of Thessaloniki, Mykonos, and Santorini, as well as the islands with a population of over 3,100 inhabitants.
for the remaining regions of the country, the value of the investment in real estate was set at 400,000 euros.
In any case, the investment should be made in a single property and not in multiples of a smaller value. The increase in investment limits for obtaining a “Golden Visa” by the Greek government was aimed at addressing the housing crisis and limiting excessive demand from foreign investors, which had contributed to the increase in property prices and rents, thus making it difficult for domestic buyers and tenants to secure affordable housing.
