Crete: Record arrivals with 6.6 million visitors but reduced profits for businesses – K. Kotsoglou in T.N.

This year’s tourism season in Crete records a 5% increase in international arrivals, with the airports of Heraklion and Chania welcoming a total of approximately 5.6 million visitors. As the Deputy Regional Governor for Tourism, Kyriakos Kotsoglou, stated to Tornos News, the “Nikos Kazantzakis” airport in Heraklion alone attracted nearly four million international arrivals this year, confirming its long-standing leading role in Cretan tourism activity.

It should be noted that domestic flights also showed a significant 10% increase, a large share of which actually involves international travelers — mainly from the United States and Israel — taking their final connecting flight to Crete via Athens or Thessaloniki.

In total, when including arrivals by air, domestic flights, and cruise passengers — expected this year to reach 800,000 — the number of visitors who came to Crete in 2025 amounts to 6.6 million. This marks an increase compared to 2023, when international arrivals at the island’s three airports reached 5.3 million.

The market gains in arrivals, not in revenue

As Mr. Kotsoglou emphasized, the positive balance in arrivals does not automatically translate into corresponding financial results.
“The market shows mixed feelings. Despite the strong traffic, the average visitor spending appears reduced, as a significant part of the tourism flow is now absorbed by short-term rentals,” he explained, noting that this development has led to an intense ‘price war’ between hotels and rental accommodations. The result was a summer characterized by last-minute bookings and substantial discounts.

The Deputy Regional Governor added that Crete remains on a growth trajectory, with the new airport in Kastelli constituting the most important infrastructure investment of the coming years — one capable of enhancing connectivity and giving new impetus to the qualitative upgrade of tourism. However, he pointed out that the main challenge remains the distribution of tourism wealth within local communities.

“Tourism in Crete generates enormous wealth, but we have not yet achieved the desired connection with the primary sector and society. The gap between hotels and the state remains — particularly in terms of infrastructure and the strategic use of tourism revenues,” he said characteristically.

Hoteliers in Rethymno see full hotels but are ‘searching for profits with a magnifying glass’

The same picture is confirmed by the President of the Rethymno Hoteliers Association, Manolis Tsakalakis, who told Tornos News that although this season was strong in occupancy, it fell short in net financial results.

“Customer arrivals were up throughout the season, and even in October we still had traffic. We had more visitors, more overnight stays, and higher turnover, but the net outcome is lower,” Mr. Tsakalakis stressed.

He explained that the main reason lies in increased operating costs, which “drag everything upward.”
“Energy costs have skyrocketed, while over the past few years hotel labor costs have risen by 40–50%. The implementation of the digital work card has further burdened operational expenses by roughly 20%,” he noted.

Labor shortage and pressure from short-term rentals

At the same time, the shortage of workers remains a serious issue, the Rethymno hoteliers’ president reminded.
“There are no Greeks willing to work in tourism. We are forced to look for seasonal workers from abroad — something that, however, comes at a considerable cost. It is not the ‘cheap solution’ many believe. It requires food, housing, and a time-consuming bureaucratic process,” Mr. Tsakalakis said.

He also made particular reference to short-term rentals, which — as he noted — have dramatically worsened the housing problem.
“We had warned years ago that this would become an issue. It does not only affect hotels, but the entire society. There are no available residences anymore, and this now has serious social implications,” he stated, noting that this also affects hotel owners who struggle to find accommodation for their staff.

On the other hand: a resilient tourism engine

Despite pressures from costs and operational challenges, both Mr. Kotsoglou and Mr. Tsakalakis agree that Crete remains a powerful tourism engine with impressive resilience — one that substantially supports the Greek economy and sets course toward conquering new markets.

It is worth recalling that in earlier statements to Tornos News, the President of the Association of Cretan Hoteliers, Manolis Stamatakis, mentioned that the Association is in close cooperation with the Region of Crete and local stakeholders to develop a new framework for promoting the island in strategic foreign markets, with an emphasis on North America, the Middle East, and Asia.

In conclusion, all agree that this year’s season confirms that the key challenge is no longer merely the number of arrivals, but the quality and social return of tourism — the transition from quantitative growth to sustainable prosperity for the people and the island.

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