€1.5B invested in hotel renovations during 2025

Capital investment in the Greek hotel sector reached €1.5 billion in 2025, up from €1.0 billion in 2024, with sustainability-related investments accounting for 20.7% of the total, further strengthening the sector’s competitiveness. At the same time, total hotel industry turnover increased to €12.5 billion in 2025 from €11.5 billion in 2024, representing year-on-year growth of 8.7%.

George Petrakos, General Director of the Institute for Tourism Research and Forecasts (ITEP) and Professor of Quantitative Methods and Computer Science at Panteion University, highlighted the qualitative transformation of Greece’s hotel sector over the past decade and its contribution to the national economy, the hospitality industry, and the value of the country’s tourism product. Drawing on ITEP’s latest research, he also demonstrated how Greek hoteliers have embraced a modern business culture rooted in local traditions and strong ties with local communities while integrating sustainability principles (Environmental, Social and Governance – ESG) and new technologies, including artificial intelligence. He further addressed developments in employment across the sector and the challenges that have emerged in the post-pandemic environment.

With regard to employment, the hospitality sector directly employed more than 225,000 workers during 2025, continuing its steady upward trend. Notably, a significant proportion of management positions—considerably higher than in many other sectors of the economy—were held by women, underscoring tourism’s important contribution to female entrepreneurship and leadership.

Mr. Petrakos also presented data illustrating the continued upgrading of Greece’s hotel stock, particularly in the four- and five-star categories. Between 2015 and 2025, the number of five-star hotels increased by 111%, rising from 412 to 869 establishments, while the number of rooms expanded by 79%, from 62,756 to 112,074. Over the same period, the number of four-star hotels grew by 45%, with room capacity increasing by 31%. By contrast, the number of one- and two-star hotels declined by 22%, confirming the gradual qualitative upgrading of Greece’s tourism product.

Greece currently has 10,118 hotels, offering 450,565 rooms and 902,326 beds. Although 72% of hotel establishments fall within the one- to three-star categories, four- and five-star hotels account for 54.4% of the country’s total room capacity. In addition, 79% of hotels have no more than 50 rooms, while 62% operate on a seasonal basis.

Presenting data for the first five months of 2026 (January–May), Mr. Petrakos noted that no significant changes had been recorded compared with the corresponding period of the previous year, either in terms of occupancy rates or average room prices.

In her opening remarks, ITEP President Christina Tetradi observed that public discussion often focuses on short-term developments, while the performance of Greek tourism has traditionally been assessed primarily through headline indicators such as arrivals, overnight stays, tourism receipts and occupancy rates. However, she stressed that these figures alone are insufficient, as growth does not necessarily equate to progress, strong demand does not automatically translate into resilience, and the success of a single tourism season cannot substitute for long-term strategy or guarantee future performance.

“The critical question today is not whether tourism is growing, but whether it is growing in the right way—under what conditions, with what impacts, and with what long-term resilience,” Ms. Tetradi stated. She emphasized that this is precisely where ITEP’s strategic research mission lies: transforming data into knowledge, knowledge into forecasting, and forecasting into a practical decision-making tool.

Ms. Tetradi also referred to the Institute’s broader vision, namely that Greece’s national tourism strategy should be built upon the solid foundations of evidence-based research. As she noted, tourism is not simply another productive sector of the economy but one with a particularly strong multiplier effect. Consequently, tourism must be accurately measured, thoroughly understood and timely interpreted in order to support well-informed strategic policymaking.

This, she explained, is the central role of the Institute for Tourism Research and Forecasts, which this year marks 30 years of continuous operation in tourism research and statistical analysis. Through its scientific expertise and long-standing experience, ITEP has established itself as Greece’s leading institution for the collection of primary tourism data and its transformation into structured, policy-relevant information.

“The Institute for Tourism Research and Forecasts is the institutional mechanism through which tourism becomes measurable reality,” Ms. Tetradi remarked. She explained that, in an environment characterised by geopolitical uncertainty, climate pressures, energy market volatility and rapidly evolving travel demand, ITEP goes far beyond monitoring tourism activity. It produces primary data, identifies emerging trends, measures performance, analyses traveller behaviour, evaluates economic impacts, forecasts market developments, and detects risks and structural shifts at an early stage.

She also highlighted the Institute’s strategic partnerships, describing ITEP as the institutional link connecting public authorities, industry stakeholders and market participants, thereby supporting timely, realistic and well-informed decision-making. As she concluded, “Ultimately, the way we plan tourism is the way we plan the country itself.”

A separate section of the presentation focused on destination-level analysis. Ms. Tetradi emphasized that one of ITEP’s most significant contributions is the production of detailed tourism data not only at the regional level but also for individual destinations and municipalities. These insights can be used by the central government, regional authorities, municipalities, businesses and market participants to support evidence-based planning and policy development.