A recent report highlights the substantial growth in the contribution of the hotel sector to Greece's economy, showcasing several positive developments across key indicators.
Tourism Demand and Hotel Performance
The tourism industry has demonstrated resilience, with stable demand during peak periods. Occupancy rates and pricing have remained steady compared to the previous year. Additionally, there is a clear trend of increasing demand during off-peak months, as reflected in higher occupancy and rates in hotels operating year-round.
In 2024, the hotel sector’s revenue increased by 8.8% compared to 2023, reaching €11.5 billion.
Overall Economic Contribution
The direct and indirect contribution of the hotel sector to Greece’s GDP has reached €17.8 billion, representing 5.9% of the national GDP, up from 4.8% in 2023. The sector supported over 340,000 jobs in 2024, of which approximately 143,000 were indirect positions created in other industries.
Furthermore, the hotel sector has contributed approximately €7.9 billion to the improvement of Greece’s external balance of payments.
Investments in the Hotel Sector
The hotel sector has recorded a significant milestone in 2024 with investments surpassing €1 billion, representing 9% of total hotel revenues. Of this amount, €200 million has been allocated to sustainability initiatives. Over the past decade, the number of hotel units has increased by 4%, while the number of rooms has risen by 11%, reflecting a qualitative upgrade in the country’s hotel infrastructure. This growth highlights that the sector’s success is driven not only by the quantity of hotels but also by the continuous enhancement of their quality.
Foreign Tourists and Online Travel Agents
In 2024, the share of foreign tourists in Greek hotels stood at 69.2%, maintaining levels consistent with previous years. Additionally, more than one-third of hotel bookings were sourced through Online Travel Agents (OTAs).
Room Prices and Occupancy Rates
The average price for a double room in August 2024 remained consistent compared to the previous year. In May and October, there was a slight yet steady increase of approximately 6% in prices. Notably, hotels operating year-round saw a significant increase in room prices, particularly in May and October.
In August 2024, the distribution of room prices was as follows:
- 25% of rooms were priced up to €80.
- 50% of rooms were priced up to €130, maintaining the same level as the previous year.
- 75% of rooms were priced up to €216.
- the central 50% of rooms (within the "golden frame") were priced between €80 and €216.
Occupancy Rates
The hotel sector saw a notable increase in occupancy rates during the summer months, with rates reaching 76% in June, 83% in July, 88% in August, and 84% in September. Notably, five-star hotels reported the highest occupancy in August, reaching 92%, followed by four-star hotels at 90%. One-star hotels achieved an occupancy rate of 88%, while three- and two-star hotels saw occupancy rates of 85%.
Challenges in the Hotel Sector
Despite the positive performance, the sector faced several challenges in 2024. These included difficulties in recruiting staff, rising energy costs, and concerns regarding operational costs, reduced occupancy during off-peak months, and increased competition from short-term rental accommodations.
While the hotel industry continues to perform strongly, addressing these challenges will be crucial to ensuring sustained growth and long-term sustainability.
