Despite the record-breaking numbers of visitors and revenue that Greek tourism has achieved in recent years, the pace of investment in the sector has slowed over the past two years, with investment activity stabilizing at around €5 billion annually, following the strong growth of previous years.
According to a study by the Institute of the Association of Greek Tourism Enterprises (INSETE) on tourism’s contribution to the Greek economy, total investments in the sector in 2025 amounted to 5.031 billion euros, a marginal decrease of 0.6% compared to the 5.063 billion euros recorded in 2024, a year in which no significant change was recorded compared to 2023.
This stagnation takes on greater significance when one considers that from 2021 to 2023, the investment rate in the sector showed a particularly upward trend. Specifically, in 2021, approximately €3.3 billion was spent on tourism investments, a figure that increased by 11% in 2022, when €3.669 billion was invested in the sector.
A larger increase, of 37%, was recorded a year later, in 2023, when €5.044 billion was spent on tourism. In contrast, in 2024, investments totaled €5.063 billion, a slight increase of 0.4% year-over-year.
The picture in 2025
More specifically, as for 2025, total investments in the hotel sector for the construction of new properties and the renovation/repair/maintenance of existing ones amounted to approximately €2.78 billion, compared to €2.8 billion in 2024, representing a 0.6% annual decline.
Based on the data, investments were distributed almost equally between new construction and renovations, a trend that reflects the fact that existing hotels are being gradually upgraded.
Regarding new hotel construction, 8,890 new rooms were recorded in 2025 compared to 11,968 in 2024, figures that reflect a clear slowdown in the pace of new developments.
Construction costs stood at 1.587 billion euros in 2025, down from 1.776 billion euros in 2024, while domestic value added fell to 997 million euros from 1.120 billion euros, respectively.
In contrast, hotel renovations showed a more stable picture, with costs rising to €1.2 billion in 2025 from €1.029 billion in 2024, suggesting that industry operators are prioritizing the upgrading of existing properties rather than expanding capacity.
Beyond hotels, a significant portion of tourism investment activity was also recorded in other sectors (accommodations, rooms for rent, villas, etc.). Investments in this category amounted to 2.244 billion euros last year, compared to 2.258 billion euros in 2024, representing a 0.6% annual decrease. A similar trend was observed in domestic value added, which fell from €753 million to €748 million.
Overall, however, over the past five years, from 2021 through 2025, more than €22 billion was spent in the sector.
Where are the investments headed?
According to INSETE, the bulk of the funds for both the construction of new hotels and the renovation of existing ones went to the two highest categories, 4- and 5-star hotels. In particular, 5-star hotels attracted more capital, as these are larger-scale projects with higher standards.
In terms of new construction, 5-star hotels attracted the largest volume of investment, with the development of 3,680 rooms and a cost of 791 million euros.
Four-star hotels followed with 3,483 new rooms and investments of €610 million. Three-star hotels attracted investments of 153 million euros, while one- and two-star hotels accounted for the smallest share, with investments of just 34 million euros.
The picture is similar for renovations. In 2025, 5-star hotels absorbed €207 million in investments for renovation, repair, and maintenance work, followed by 4-star hotels with €319 million. In the 3-star category, related expenditures amounted to €170 million, and for 1- and 2-star hotels, €237 million.
This trend reflects the industry’s shift toward upgrading the quality of its offerings and attracting visitors with higher income profiles.