The global pandemic has had huge effects on the entire European tourism industry, but for countries like Greece, whose economy relies heavily on holidaymakers, the impact has been much more significant. The future of the industry, however, is beginning to look brighter.
Over the past decade, Greece has quickly become one of Europe’s most popular holiday destinations. With a steady rise in economic revenue due to tourist spending – from EUR 12 billion in 2012 to EUR 20.3 billion in 2019 – leisure and tourism made up for over 21% of the country’s total GDP.
Over one fifth of Greece’s workforce (900,000 people) works in hotels, tour companies, retail outlets and other tourism-related occupations. For these reasons, when the coronavirus spread across the world, Greece was hit harder than most.
Falling on hard times in 2020
Revenue from tourism fell by more than 75% in 2020 to just EUR 4.3 billion. Retailers big and small reported that customers were few and far between and especially on the islands, which are locations for both domestic and international vacationers alike.
The lack of travel in and out of Greece’s numerous airports, which are spread across the islands and the mainland, was felt deeply. According to hotelier associations throughout the country, Greek hotels, motels and other accommodations were servicing guests at a 20-25% average capacity up until June this year.
It is, therefore, no surprise that the Greek government decided to become one of the first European countries to open to travellers both foreign and domestic in mid-May, for those able to provide a negative Covid-19 result and proof of either vaccination or recovery.
In 2021, the situation has been steadily improving, with retailers, tour operators and hotel executives expressing positive outlooks for their locations. There has been a marked improvement in terms of all aspects of tourism for the Mediterranean destination.
First according to ForwardKeys
According to research by ForwardKeys, Greece came in first place in terms of air travel to its many locations. At 86% capacity compared to July and August 2019 numbers, the research shows a huge improvement compared to the previous year. In fact, it is twice as high as the average for the whole of Europe – which stood at just 40%. Athens was the second busiest European holiday destination this season, only marginally following Palma, Mallorca.
Retailers have enjoyed a 10.8% increase in turnover since last year, according to government statistics back in June of this year, and sales have been steadily climbing throughout the summer season. Simultaneously, hoteliers have reported an upturn in their capacities and estimate that by the end of the year, they will have reached an overall average capacity of 65%.
An optimistic outlook for 2022
As 2021 continues, the forecast for the tourism industry in Greece is becoming much more optimistic. Prime Minister of Greece, Kyriakos Mitsotakis, announced a 16.2% increase during Q2 of this year and has described the current summer season as “very good” and “much better than was expected.” He predicts that 2022 will continue to improve.
As vaccination rollouts are becoming stronger and travel bans across the globe soften, the worldwide tourism industry holds its breath and hopes for better times. In Greece, many are looking forward to welcoming back international clientele as they look forward and can finally see a light at the end of the dark corona tunnel.
