Tourism is and will remain, a big economic force in Greece. Arrivals are increasing, the length of stay is not declining fast, average daily spending is constant, the number of significant tourist origins is going up. On the other hand, arrivals remain peaky, daily spending is modest by international standards and the same legacy destinations attract most of the demand.
Destination appears to be the prime determinant of a hotel’s financial performance, with size and rating following. Hotels in Crete, South Aegean and the Ionian Islands are the most competitive.
There are about 400 hotels which require financial restructuring of around € 2.1bn before attracting any new investment.
There are three value creation business strategies, applicable in the hotel industry
- Develop lesser destinations, mainly targeting 5* Star hotels at Thessaly, Western Greece and North Aegean
- Add capacity at main destinations focusing on Star hotels, with 3* hotels being a solid target
- Upgrade Star and Grey hotels to the next class and especially 4* to 5*
The most promising investment strategy, in terms of value potential, appears to be the development of lesser destinations, followed by upgrading 4* to 5* hotels, and adding capacity to existing 3* hotels.
There are four interconnected public policies which need to be applied consistently to address the challenges of tourism and increase its value to the economy
The next day of Greek tourism will be good but it can be even better with the partnership of the public-private sector
Download report The next day of Greek Tourism
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