Greek tourism is entering a new phase of growth from a position of maturity and strength, with its success making clear that the next phase cannot simply repeat the last.
The sector’s competitiveness will depend less on visitor numbers and more on the value it creates, the quality of the experience, how widely its benefits are shared with local communities and its ability to adapt.
That was the central message at an event to present the study by INSETE, “Greek Tourism: Achievements, Challenges, Prospects”, held on Friday 23 October 2026.
The study examines Greek tourism as a whole, looking at the value it creates, its people, business competitiveness, the resilience of destinations, infrastructure, the environment and its relationship with society.
It brings together in a single picture issues often discussed in isolation — from arrivals and revenues to infrastructure and the environment — aiming to highlight the key questions and support a more evidence-based public debate.
In her opening remarks, SETE president Agapi Sbokou said:
“Greek tourism has made remarkable progress, built on what we have achieved together over the years. Today it is a key component of the country’s productive model and a catalyst for its development.
The challenge ahead is not simply to grow in numbers, but to create greater, lasting value for everyone. INSETE’s study presents a comprehensive and honest picture of the current reality, and sheds light on the challenges and opportunities before us.
SETE will draw on its findings in discussions with the government and social and business partners, with the aim of helping shape specific policies and initiatives for the model of tourism development we want for the country”.
A strong footprint, positive prospects and challenges: from taxation and infrastructure to the climate crisis and digital transformation
Presenting the study, INSETE scientific director Aris Ikkos highlighted tourism’s position internationally and its pivotal role in the Greek economy and society.
In 2025, the sector’s direct contribution amounted to 13% of GDP, while its total direct and indirect contribution was about 30%. Investment in the sector is estimated at around €5bn.
Internationally, according to the WEF, Greece ranks 21st for tourism competitiveness, compared with 59th for the economy overall. It also has a very strong brand and is the third most desirable destination for Germans and Italians, and the fourth for French and British travellers.
Some 75% of tourism activity takes place outside Attica, and 58% in the island regions, making the sector a cornerstone of economic and social life on the islands and in many remote areas of the country.
Notably, while Greece’s population fell by 3.1% between the 2011 and 2021 censuses, the South Aegean recorded growth of 6.1% and Crete growth of 0.2%, while other regions saw declines of as much as 10.3%.
There are weaknesses, however. Five regions account for 83.0% of visits and 90.0% of receipts, while 90.0% of Municipal Units, covering 95.0% of the country’s area, have little or no tourism development.
The main issue, therefore, is the concentration of tourism activity by location and season, mainly in the third quarter.
Other factors to consider include the tax burden, which puts Greece fifth among seven competing countries, high energy costs, deficits in public infrastructure and the maturity gap among businesses in environmental sustainability.
As part of the tourism offering, short-term rentals need to be integrated in a balanced way, with clear rules and enforcement, tax parity with hotels, and links to housing and the quality of the visitor experience.
At the same time, digital transformation and climate change are creating a new and more demanding environment.
Productivity, people and society in focus
Three key issues in the public debate on tourism were discussed by INSETE general director Ilias Kikilias, Tasos Anastasatos, chief economist of the Eurobank group and chair of the Hellenic Bank Association’s HBA Coordinating Committee for Economic Analysis and Outlook of the Banking Sector, Elena Gika-Petroulaki, Chief People Officer at Costa Navarino, and Faye Makantasi, research director at diaNEOsis.
Tourism is a key component of the country’s productive model
It is often argued in public debate that Greece needs to change its productive model and reduce its reliance on tourism.
The data, however, show that tourism does not displace other productive sectors but is an established competitive advantage for the country. The challenge is to raise productivity in tourism and in the sectors linked to it.
Mr Anastasatos said:
“The success of Greek tourism in recent years has made a significant contribution to economic growth and to balancing the current account. Tourism’s benefits include reducing regional inequalities, helping to retain populations in poorer areas and creating value for other sectors.
The challenge for the sector’s future is to maximise its positive economic contribution while minimising negative externalities. This means focusing on increasing revenue per visitor rather than the number of arrivals, alongside investment in public and private infrastructure that supports this goal.
Greek banks have provided substantial support for tourism’s growth, significantly increasing lending to the sector and offering expertise. They have the liquidity and willingness to provide financing for further progress towards a high-value-added model”.
From creating jobs to offering genuine career prospects
The hospitality and high standard of service delivered by tourism workers have long been important competitive advantages of Greece’s tourism offering.
At the same time, staff shortages and the need for upskilling are emerging as key challenges. The shift from “jobs” to “careers” is seen as the sector’s most strategic investment.
Ms Gika-Petroulaki said:
“To address labour shortages in tourism, we must first reconsider what we offer the people we want to attract and retain. Reliability, consistency, quality of leadership, genuine care and career prospects are not perks; they are prerequisites for a sustainable employment relationship.
At Costa Navarino, systematic investment in these principles strengthens trust, loyalty and our people’s long-term career development. We also invest in the continuous development of skills and in technology that frees up time for human interaction. It is not enough to look for people to meet the sector’s needs. We must shape a sector that also meets people’s needs”.
Social acceptance as a prerequisite for sustainable development
Society remains broadly positive about tourism.
According to surveys, 82.4% view its economic contribution positively, while 54.0% consider it the sector that has made the greatest progress since the restoration of democracy, ranking it first.
There are, however, concerns about issues such as the cost of living and pressure on housing and local infrastructure. These issues have multiple causes and cannot be attributed to tourism alone.
Acceptance also depends on the fair distribution of benefits and quality of life in destinations.
Ms Makantasi said:
“Greek tourism is doing quite well. The question is how well the places that host it are doing. Arrivals and revenues tell only one side of the story.
Tourism’s success is also judged by whether residents have access to water, whether infrastructure can cope, whether the environment is protected and whether the benefits reach the local economy. That does not happen by itself.
It takes better co-ordination between central government, municipalities and regions, the creation of strong Destination Management Organisations (DMMOs), and ensuring that tourism revenues are put to use in ways that deliver visible benefits for residents”.
INSETE general director Ilias Kikilias said:
“Greek tourism has significant advantages. The challenge in the years ahead is to make better use of them: to raise productivity and value added, invest in people and their skills, and improve how we plan and manage tourism development.
Ultimately, Greek tourism’s success should not be measured only by the number of visitors we attract, but also by how much value we create for the economy, workers and local communities”.
The event was chaired by SETE’s general director, who said:
“The study makes a substantial contribution to public debate, as it brings together a comprehensive picture of Greek tourism for the first time. In a sector often discussed in fragments, we set evidence-based data against established perceptions and simplifications.
Tourism can continue to grow and contribute to the Greek economy and society, but not on autopilot. Policymaking and business decisions require a shared knowledge base and an understanding of how things are interconnected.
That is precisely the role served by SETE’s ecosystem: producing knowledge and evidence to support more effective policies, strengthen competitiveness and contribute to the strategic development of Greek tourism”.
*See the study in the Supporting Material column on the right.