A look at tourism in Greece

Greece is the cradle of one of the ancient civilizations. Alongside Italy, Egypt, China, and Iran, the name of Greece, too, has great importance in the history of civilization. Magnificent structures, historic cities, and renowned scholars have made this country a mysterious destination for tourism. In our era, too, visiting this country has many enthusiasts.

 

The importance of domestic tourism for Greece's economy

Tourism in 2022 contributed approximately 24 billion euros to Greece's gross domestic product (GDP). This figure constitutes about 11.5 percent of Greece's total GDP and indicates the high importance of tourism in this country's economy. Five regions in Greece have accounted for approximately 90 percent of this revenue, of which three regions are purely tourist. This information has been reported by the Institute of the Greek Tourism Confederation (INSETE).

Greece's tourism industry in 2023 has witnessed considerable growth. Revenue obtained from tourism has reached 20.6 billion euros, which relative to 2022 has had a 16.5 percent increase. Also, forecasts indicate that this growth will continue in 2024 and it is expected that Greece's tourism industry will face growth of about 10 percent.

This information indicates the increasing importance of tourism in Greece's economy and the positive impact that this industry can have on this country's gross domestic product (GDP).

The direct and indirect effects of tourism on Greece's gross domestic product (GDP) are considerable. Direct effects include revenues obtained from services directly to tourists such as hotels, restaurants, and local tours. This sector affects GDP directly, and in 2022 tourism's direct share of Greece's GDP was about 24 billion euros or 11.5 percent.

Indirect effects include impacts that enter the economy through the purchase of goods and services by sectors related to tourism. This includes investments in infrastructure such as transport and communications, and also services such as supplying food and drink. Tourism, as part of the services economy, accounts for about 30 percent of services trade, and in T20 member countries 45 percent of GDP is allocated to tourism. These indirect effects are important drivers of economic growth and can help sustainable regional development.

In short, domestic tourism can affect Greece's economy directly and indirectly, not only through direct revenues obtained from tourism activities, but through chain effects that spread to other economic sectors. These effects can lead to job creation, income growth, and improvement of infrastructure, all of which in turn help the country's economic growth and development.

Comparison of the number of tourists in 2023 with past years

The number of inbound tourists to Greece in the first ten months of 2023 increased 17 percent and reached 30.9 million people, while in the similar period of 2022 the number of tourists was 26.4 million people. This increase in the number of tourists led to 14.7 percent growth in revenue obtained from tourism and reached 19,612.4 billion euros.

Also, Athens International Airport in 2023 recorded a new record in terms of passenger traffic. Passenger traffic over the year 2023 reached 28.174.150 people, which relative to 2022 increased by 24 percent and relative to 2019 (the previous record year) by 10.2 percent. The number of flights carried out from and to Athens Airport over the year 2023 also reached 241.604 flights, which grew 13.2 percent relative to 2022 and 7.1 percent relative to 2019.

This information indicates the flourishing of the tourism industry in Greece and a gradual return to the situation before the COVID-19 pandemic.

 

Tourism statistics in the year 2023 CE show that the number of the world's tourists in the first 3 months of 2023 CE traveled 2 times more than in the similar period of 2022 CE. This improvement in tourism has played an important role in the global economy. Tourism revenue, too, in 2022 CE passed the one-trillion-dollar mark.

Even so, economic problems, inflation, the jump in oil prices, and geopolitical issues are still the most important obstacles on the path of tourism's recovery in 2023 CE. The Middle East, as a region that is leading in tourism recovery, is still advancing on the path of recovery, and Asia, too, still has a large distance from pre-pandemic tourism statistics. Europe in the tourism-revenue section still stands at the top and accounted for more than half of tourism revenue in 2022 CE. It appears that with the continuing effect of the reopening of borders, the trend of tourism recovery in Asia will also accelerate.

The impact of investment on the growth of tourism and Greece's economy

Given the published statistics and analyses, domestic tourism in Greece in 2023 has had a positive impact on this country's economy. Here a summary of the key points is presented:

• Increase in tourists: Foreign tourist arrivals in Greece in the first ten months of 2023 increased 17 percent and the number of visitors reached 30.9 million people.
• Revenue growth: This increase in visits led to a 14.7 percent increase in travel revenue, which reached 19,612.4 billion euros.
• Air traffic: The number of flights carried out from and to Athens Airport over the year 2023 reached 241.604 flights, which relative to 2022 had 13.2 percent growth.
• Positive forecasts: Greece's tourist revenue for 2024 should register a new record, and Greece's tourist revenue for next year has been estimated between 20 and 21 billion euros.

These statistics show that domestic and foreign tourism has acted as one of the main drivers of Greece's economy and has made a considerable contribution to this country's economic growth and development. Even so, to preserve this upward trend, Greece must continue to strengthen tourism infrastructure and offer quality services to tourists.

 

Final word

• Growth of domestic tourism:

1. Tourism growth rate: Analysts have predicted that the tourism industry can contribute 6.9 percent to Greece's economic growth.
2. Increase in employment: Also this industry can cause 6.3 percent growth in employment.

• Impact on the economy:

1. Gross national product (GDP): Tourism constitutes about 20 percent of Greece's gross national product.
2. Revenue: In 2019, Greece obtained more than 18 billion euros of revenue from the tourism industry.

Analysis of the impact of investment on the growth of tourism and Greece's economy shows that domestic and foreign tourism in this country have a direct relationship with economic growth. The increase in the number of tourists and travel revenue in 2023 indicates this industry's positive effect on Greece's economy. Positive forecasts for 2024 also indicate continued growth in the tourism field.

Investment in Greece's tourism industry has acted as one of the main drivers of this country's economic growth. To preserve this positive trend, strengthening tourism infrastructure and offering quality services to tourists is of particular importance. These measures can help Greece's economic improvement and sustainable development.

Maryam Nourzad