Greek tourism today accounts for 25% of the country’s GDP, a quarter of the national wealth, as well as the jobs that come with it. This is an important sector for Greece, which is emerging from a long depression after the 2010 crisis.
Tourist activity is recovering after a serious weakening due to Covid, and more recently due to the war in Ukraine: the country experienced a sharp increase in prices (+70% for energy, 30% for restaurants) and the loss of hundreds of thousands of Russian and Ukrainian tourists, who are very love the islands located in the north of the archipelago. The President of the Union of Greek Tour Operators estimates the number of cancellations of Russians at 600,000 and Ukrainians at 240,000. Most of them are wealthy clients. The expected loss is 700 million euros.
To attract customers, Athens has taken a number of measures. In particular, they opened the season earlier. The first effect: the number of tourists arriving for the Easter holidays has increased both in the capital and in Thessaloniki on the Aegean. And then, to boost tourism, Greece began lifting Covid-19 restrictions in February. The border test is no longer mandatory for travelers with a European vaccination certificate, and from May 1: there is no longer a health pass in bars and restaurants.
According to Minister of Tourism Vassilis Kikilias, hotel occupancy rates during Easter showed increased demand in popular destinations such as Nafpaktos, where occupancy reached 100%, followed by Santorini, Evia and Ioannina (90%), Mykonos and Heraklion (85%), Etoloakarnania and Thassos (80%), Kefalonia and Kalavryta (70%).
Can we say that Greece is drawing a line under the most difficult years of the crisis? Since 2010, the International Monetary Fund has lent Greece 1,800 billion euros. This debt has now been repaid. Athens even finished paying off the debt in early April, nearly two years ahead of schedule. This early repayment saved the country 230 million euros in interest. But, despite the restoration, part of the population is still mobilized and goes to demonstrations. They believe that they are not getting enough benefits from the economic recovery.