Greece panic as spending drops despite hordes of tourists visiting the country

Greece has seen a slump in revenue from holidaymakers - despite the crowds of tourists flocking to the country each year to experience the glorious sun and beautiful white sandy beaches.

Although tourism in Greece is seeing a notable increase, with the number of visitors exploding beyond control, growing by 120 percent between 2019 and 2023, tourist pockets don’t seem to be

as deep. Weak European economies, as well as Greek inflation, had led European visitors, especially, to restrict their spending. Greece’s inflation rate amounted to 2.3 percent in June, down

from 2.4 percent in May. However, food prices increased by 2.1 percent according to Hellenic Statistical Authority (ELSTAT). The Bank of Greece notes that although incoming tourists traffic

has risen by 15.5 percent compared to 2023, average spending has declined by 3.1 percent. Greece has seen the largest increase of visitors from Germany with 1.766 million, followed by the

UK at 1.371 million and France with 676,100. In May, total tourism revenue increased by 6.8 percent, while arrivals rose by 21.3 percent. However, the average spending per trip plunged by

12.2 percent. While overall tourism revenue is increasing, this growth is due to the higher number of arrivals rather than increased spending, as the average expenditure per tourist has

noticeably declined. The decline in tourist spending is also down to rising airline and ferry prices, prompting international travelers to rethink their budgets and cut back on accommodation

expenses. Due to the cost of living crisis, many holidaymakers are spending less during their stays and are finding budget-friendly options whilst holidaying in Greece, including cutting

the length of their trip. As a result, the average length of stay per trip fell by 11.2 percent last year, averaging 6.5 nights. The younger generations are also changing the typical tourism

model and are less likely to spend as much as older generations. A survey by consulting firm Simon-Kucher, involving over 5,400 European travelers, revealed that while Baby Boomers

increased their travel budgets by 19 percent in 2024, Gen Z travelers only raised theirs by just one percent.