Greece: The average cost per trip decreased for the third year in a row

The performance so far points to a good year for tourism in Greece in 2024, however, there is also a worrying element: For the third consecutive year the average expenditure per trip by non-residents of Greece is still in a downward trend. Specifically, from 681.3 euros in the first half of 2021, it will gradually decrease to 570.7 euros in the first half of 2024. In other words, the reduction amounts to 110.6 euros per trip.

This was highlighted in Alpha Bank’s Financial Developments Bulletin. What’s the point?

The Upward Trajectory of Greek Tourism in 2024: Arrivals, Receipts, Reputation and Visitor Satisfaction

THE tourism remained on an upward trajectory in the first half of this year and it is likely that 2024 will be another record year for the industry. Based on recently published data by the Bank of Greecetravel arrivals and receipts increased by 15.5% and 12.2% respectively, compared to the historical high performance of the first half of 2023. In addition, the indicators for July are particularly encouraging, with international tourist arrivals at Athens International Airport and the regional airports of the country exceeding the corresponding figures of last year by 10.8% and 3.6%. .

At the same time, the online reputation of Greece as a travel destination continues to occupy one of the highest positions in Europe. Specifically, according to the trend of the NSI index, in the second quarter of the year, Greece with Spain they are in third place after Portugal which is first and Italy with Croatia tied for second place.

The largest number of positive online discussions about Greece are about matters of culture and gastronomy, with positive references to the weather (mostly in the spring months) and the quality of the sea experience. In addition, the level of visitor satisfaction remains significantly higher (Greece: 9.2 and Athens: 9.1) than the European average (8.9).

The low trend in average cost per trip

On the other hand, despite the significant increase in total travel receipts, the average cost per trip of non-residents in Greece is still on a downward trend for the third consecutive year.

In particular, from 681.3 euros in the first half of 2021, gradually decreasing to 570.7 euros in the first half of 2024. This fact is possible attributed to a change in the consumer behavior of travelers, as a result of the decline in incomes due to inflationary pressure and continued expansion of the sharing economy.

In particular, the increase in the supply of accommodation – a result, among other things, of the increase in the number of properties available on online platforms – has led to a significant increase in the number of tourists, with similar which decreases per capita. spending.

In particular, overnight stays by foreign nationals in accommodation available on online platforms through the sharing economy increased by 21.1% last year and by 32% in the first quarter of 2024.

Strengthening the stability of the sector, in the medium term as well as in the long term, is very important, due to the high contribution of tourism to the Greek economy – estimated at almost 1/3 of the country’s GDP in the last year. – but also the significant challenges facing the sector, such as external demand pressures due to inflation and geopolitical tension, the effects of climate change and the lack of human resources recorded in the recent years.

Therefore, the timely and effective implementation of infrastructure projects is important, in the context of absorbing the resources of the Recovery and Resilience Fund, with the aim of extending the tourist season, developing alternative forms of tourism, green investment, improving accessibility and retraining. and upskilling of the sector’s workforce.

The performance of tourism in Greece in the first half of 2024

According to data from the Bank of Greece, collections amounted to Euro 6.9 billion, marking an increase of 12.2% compared to 2023 (Euro 6.2 billion). At the same time, tourist arrivals reached 11.6 million visitors, which recorded an annual increase of 15.5% compared to the 10.1 million tourists who visited the country in the first half of the year 2023. It is worth mentioning that in shaping the result all months contributed to this for the first half of the year, because the arrivals of tourists in each month exceeded the corresponding arrivals of the previous year.

In addition, this is the third highest annual change recorded in the first half of the year in selected Mediterranean countries. It should be noted, however, that in all competing countries, the annual change in travel arrivals in the first half of 2024 is strongly positive, with a double-digit growth rate for Spain, Turkey, Italy and Malta. This fact is consistent with the predictions of the international organization World Travel & Tourism Council (WTTC), which predicts that this year will be a new record year for world tourism.

In the first half of 2024, arrivals and receipts in four of the main countries of origin, namely Germany, the United Kingdom, France and the USA, registered a significant increase, representing approx. husband of 38% of total arrivals and 46% of total receipts. , respectively. As for international travel arrivals, most from Germany (1.8 million, +13.6%) followed by the United Kingdom (1.4 million, +6%), while the number of visitors from France is also significant (676 thousand, +5.6%) and USA (578 million, +9.5%).

Overall, arrivals from EU-27 countries increased by 17.3% in the first half of the year, while from non-EU-27 countries by 13.1%. Consequently, in terms of receipts, most came from Germany (Euro 1.2 billion, + 7.4%), the United Kingdom (1 billion, + 20%), the USA (540 million, + 1%) and France (446 million, + 2.5%), with receipts from EU-27 countries increasing by 14.8%, while from non-EU-27 countries by 8.4%.

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