Greece Tourism Soars Despite Revenue Dip

Greece witnessed a significant rise in air and road arrivals this year, though revenues did not match this influx. Between January and September, international air arrivals hit 22.6 million, a 7.9% increase over the previous year’s 20.9 million. The first quarter saw the most growth, with January alone registering 485,000, up 25.3%. April’s figures were milder at 1.4 million, a 5.6% increase. In May, air arrivals surged to 2.9 million, climbing by 12.7%, while June saw them reach 3.8 million, a 5.6% increase.

The third quarter began more modestly, with July’s increase at 5.3%, totalling 4.6 million arrivals. August arrivals were 4.5 million, with growth at 7.4%. In September, the increase slowed down to 7.1%, amounting to 3.7 million.

Geographically, most regions saw growth. Between January and September 2024, Crete reached 4.8 million arrivals, up 6.5%. The Dodecanese saw 4 million, a 9.7% rise, and the Ionian Islands had a 4.9% increase. The Peloponnese had the most substantial growth at 11.8% compared to the same time in 2023, but the Cyclades experienced a slight drop of 0.8%, totalling 1.2 million. Road arrivals surged significantly, recording 10.3 million, a 14.5% rise from 9.0 million during the same period in 2023. September alone accounted for 1.5 million, with a remarkable 17.5% increase.

Despite the boost in arrivals, revenue outcomes were below expectations. The Bank of Greece reported a 1.8% decrease in travel earnings for August 2024, reaching €4.25 billion, down from €4.32 billion in August 2023.

August 2024 Balance Overview

In August 2024, the balance of travel services achieved a surplus of €4,020.7 million. This decreased compared to August 2023’s surplus of €4,090.6 million. Key highlights include:

• Travel receipts declined by 1.8% to €4,249.6 million from €4,328.2 million the previous year.
• Travel payments saw a 3.7% reduction, standing at €228.9 million compared to €237.6 million in August 2023.
• The average spending per trip dropped by 8.8%, though the number of inbound travellers rose by 6.6%.
• Net travel receipts more than compensated for the goods deficit, covering 150.6% and representing 88.8% of all net receipts from services.

January-August 2024 Performance

From January through August 2024, the travel services sector reported a surplus of €13,330.6 million, seeing growth from the €13,096.1 million surplus in the same timeframe of 2023. Highlights of this period include:

• Travel receipts increased by €476.2 million, or 3.2%, reaching €15,179.6 million.
• Travel payments rose by €241.7 million, a 15.0% increase, totalling €1,849.0 million.
• The growth in receipts was driven by a 9.9% boost in inbound travellers despite a 7.0% reduction in expenditure per trip.
• Net travel receipts offset 58.3% of the goods deficit and formed 83.4% of total net service receipts.

As the summer season ends, the market has mixed sentiments. The tourism sector remains hopeful, anticipating that the yearly revenue basket will surpass last year’s €20.5 billion and potentially exceed €22 billion.