A recent National Bank of Greece study suggests prospects for tourism in 2023 are considered positive based on the preliminary indicators. The research shows a gradual improvement in consumer confidence and an increased willingness to travel internationally. Even with recent inflation and the current general economic downturn, the studies contained in “Business trends, Tourism (1st quarter 2023)” of the Directorate of Economic Analysis of the NBG show great potential for this year.
The analysis highlights the fact that Greece is high on the list of tourist interest, with early bookings appearing 70% higher than in 2022, while scheduled airline seats are moving 11% higher for in the first weeks of March. The geopolitical situation and uncertainty, as well as higher energy costs for hotels and labor shortages, do not seem to factor negatively in the outlook. The analysis points out:
Tourism receipts picked up speed in autumn 2022, replenishing 2019 by around 90% in both arrivals and deflated receipts. Greek hotels were particularly favored by this dynamic, recording sales 24% higher compared to autumn 2019 (+9% in constant prices), with foreign tourists being the spearhead. Specifically, the hotel industry in Greece improved a number of its indicators:
- It increased its share of the domestic tourism pie, as of the foreign tourists who visited Greece, 60% stayed in hotels (compared to 57% in 2019).
- It lifted nightly sales by 27% over 2019, largely reflecting an improvement in both the range and quality of service. This performance ensured healthy margins, with operating profitability estimated to have strengthened on average in a range of 20-35% compared to 2019.
- It strengthened Greece’s share of overnight stays in Mediterranean hotels (by 1 percentage point), while achieving a greater increase in revenue per night.
Focusing on performance by origin and destination we find that:
- Increased concentration is seen in the 4 core markets (Germany, UK, France & USA), which raised their contribution to arrivals by 10 percentage points and receipts by 5 percentage points (due to a relative drop in spend per arrival). The spearhead was the United Kingdom, with arrivals 43% higher than in 2019.
- The islands maintain their dominance, with sales 13% higher than 2019 (at constant prices), while anemic road arrivals kept continental destinations down (-5% at constant prices, compared to autumn 2019).
Source: Tornos News
