Tourism Revenues Drop 1.8% in Greece Despite Rise in Arrivals

Tourism revenues in Greece during August 2024 saw a revenue decline of 1.8% compared to the same month last year, despite a 6.6% rise in arrivals, according to a report from the Bank of Greece.

This trend is becoming persistent, as it is the second consecutive month that revenues have dropped this year, which is causing concern within the domestic tourism industry, as it is no longer seen as an isolated incident. The question is whether this is a global trend or whether is it specific only to Greece.

According to data from the Bank of Greece, in August 2024, revenues were 78.6 million euros lower than in August of 2023. This decrease occurred even though the number of non-resident travelers increased by 6.6%.

For the eight month period from Jan. to Aug., overall travel revenues reached 15.179 billion euros, up from 14.703 billion euros during the same period in 2023, marking a 3.23% increase.

To maintain year-over-year parity in tourism revenues, the remaining months of the year would need to experience a revenue drop of more than 476.1 million euros, which is the current year-to-year difference for the first eight months. This would mean an 8.22% decline if compared with last year’s Sept. to Dec. revenues.

However, tourism experts consider such a major revenue drop highly unlikely unless something extraordinary occurs. The most probable scenario is that 2024 will achieve a new revenue record, albeit with some difficulties during the final four months, with Sept. being a crucial month as to whether this negative trend will continue.

Tourism experts attribute this decline in revenues to several factors, including, first of all, the fact that tourists spend less on non-hotel-related expenses as noted by restaurant owners in tourist areas.

Furthermore, short-term rental properties, such as Airbnbs, are becoming increasingly more popular where total spending is considerably lower compared to hotels.

The changing spending habits of tourists is also impacting the revenues. Tourists are more cautious with their spending this year, which is most likely linked to the economic situation in their home country.

Finally, higher airfare prices reduce the amount left in tourists’ budgets for accommodation and dining, as experts from the tourism sector note.

Source: tovima.com