What's Happening?
The Greek hospitality industry has experienced growth in international arrivals, with a 4.1% increase year-to-date as of August 2025. Despite temporary declines in May and June, the peak season saw significant growth, with arrivals increasing by 6.4%
in July and 8.1% in August. The industry faced challenges due to seismic activity near Santorini, which led to a 12.8% decline in arrivals and a 22% drop in accommodation revenue for the first half of 2025. However, other regions like Thessaloniki and Athens recorded strong growth in arrivals. The industry is also seeing developments in hotel chain penetration, with international, national, and local chains expanding their presence in Greece.
Why It's Important?
The growth in international arrivals reflects sustained demand in key markets, contributing to the overall economic health of Greece's tourism sector. The seismic activity near Santorini highlights the vulnerability of the industry to natural events, which can impact visitor numbers and revenue. The expansion of hotel chains indicates a trend towards branded accommodations, which can enhance the quality and consistency of services offered to tourists. This growth is crucial for Greece's economy, as tourism is a significant contributor to GDP and employment.
What's Next?
The industry is expected to continue its growth trajectory, with ongoing investments in hotel infrastructure and services. The acquisition of properties like Gaia Palace and Gaia Royal in Kos by Premia indicates continued interest in expanding hospitality offerings. Renovation works are scheduled to be completed by May 2027, which could further boost the attractiveness of these destinations. The industry will need to address challenges related to natural events and ensure robust contingency plans to mitigate impacts on tourism.
Beyond the Headlines
The seismic activity near Santorini underscores the importance of disaster preparedness and risk management in the tourism sector. It also highlights the need for effective communication strategies to manage public perception and reassure potential visitors. The expansion of branded hotel chains may lead to increased competition, driving improvements in service quality and customer experience.
