A new study by Eurobank’s Economic Analysis and Research Unit, led by economist Tassos Anastasatos, highlights significant changes in the Greek tourism model. The study’s main finding is that tourism in Greece is now evolving in a direction where “more and more tourists stay less and less and leave less and less money”.
The study, entitled “Tourism Pillar: Key Features, Impact on the Economy, Challenges, Opportunities and Policy Proposals”, attributes this development to changes in international tourism demand, as the trend for more, but shorter trips increases, and to the geographical and qualitative diversification of the country’s tourism product.
In particular, the rise of city breaks, characterized by shorter stays, is highlighted, as well as the increased flow of road arrivals from neighboring Balkan countries, especially in regions such as Central Macedonia and Epirus, which traditionally record a shorter average length of stay.
Revenue and expenditure are declining per visitor
Despite the increase in arrivals, at an average annual rate of 7.1% in the period 2011-2024, reaching 40.7 million tourists in 2024, the average expenditure per tourist fell to 530 euros, from 640 euros in 2011. During the same period, tourism revenues increased at a rate of 5.8% per year, reaching 21.6 billion euros or 9.1% of GDP.
Even the average expenditure per overnight stay, although nominally increased to 89.7 euros in 2024 from 68.6 euros in 2010, in practice remained almost unchanged in real terms, due to inflation. Consequently, the increase in revenue does not reflect an increase in the qualitative or economic value of the tourism product, but mainly the quantitative expansion of the number of visitors.
The challenge: more revenue per visitor
The study emphasizes that the long-term sustainability of the tourism sector is not assured if increasing demand leads to a degradation of the environment and the level of services provided. On the contrary, a transition to a more qualitative and sustainable model is deemed necessary, aiming at increasing expenditure per visitor, and not simply arrivals.
The 10 proposals
Eurobank submits ten policy proposals to achieve this qualitative upgrade:
1. Strict implementation of the legislation on arbitrary and unplanned construction, in order to protect the natural environment from uncontrolled tourist exploitation.
2. Regulation of the location of tourist units so that they are harmoniously integrated into the natural and cultural landscape.
3. Promotion of investments in high-quality hotel units. Already in the last five years, 5-star units have increased by 37% and 4-star units by 14%, while those of a lower category have decreased.
4. Strengthening the infrastructure that serves quality tourism: transport, energy, water, waste, internet, cultural structures.
5. Upgrading public space and the natural environment, with the aim of improving the aesthetics and functionality of destinations.
6. Investing in human resource training, so that the sector can offer higher quality services and better paid jobs.
7. Incentives for alternative forms of tourism with higher added value, such as cultural, agro-tourism or religious tourism and city breaks.
8. Supporting the sustainability and green transformation of tourism businesses, with an emphasis on the circular economy and the protection of biodiversity.
9. Regulating short-term rentals, so as to avoid distortion of competition and pressure on the housing market. The study proposes a clear distinction between a real “sharing economy” and professional activity.
10. Climate change adaptation measures, such as avoiding construction in vulnerable areas, enhancing energy efficiency and extending the tourist season with incentives for travel outside the summer.
