At historical highs, at the level of 28.5 billion euros corresponding to 13% of the GDP, is the direct contribution of tourism to the Greek economy in 2023, as highlighted in data from the latest study of the Institute of the Association of Greek Tourism Enterprises ( INSETE) for the “Contribution of tourism to the Greek economy in 2023”.
The direct contribution of tourism to the Greek economy reached 28.5 billion euros in 2023, an amount that corresponds to 13% of the country’s GDP and is the highest, historically, for the sector to date. In 2022 the corresponding figures were 23.9 billion euros and 11.6% of GDP and in 2019 23.1 billion euros and 12.6% of GDP.
The figures come from the latest study by the Institute of the Association of Greek Tourism Enterprises (INSETE) on “The contribution of tourism to the Greek economy in 2023”, according to which if the indirect contribution of the sector through multipliers is taken into account, the corresponding percentage rises regarding 30%. Tourism activity remains mainly export, since 82.7% of receipts come from inbound tourism. Furthermore, the sector directly contributed to the peak, in Q3 2023, of 16.4% of employment and overall (directly and indirectly) to around 40%, contributing to the reduction of unemployment.
The direct contribution
As regards the direct contribution of the sector for the previous year, it amounted to 28.5 billion euros and is divided among the figures by the expenditure of incoming tourism (20.7 billion euros including the expenditure of cruise passengers), air transport ( 2.5 billion euros), maritime transport (144 million euros), spending by cruise lines (235 million euros), domestic tourism (2.5 billion euros) and domestic value added from investments (2, 5 billion euros). It is recalled here that according to the first estimate of ELSTAT, the GDP of the country, at current prices, in 2023 was 220.3 billion euros, increased by 6.6% compared to 2022.
The direct impact of tourism saw an increase of 23.5% compared to 2019’s €23.1 billion with significant increases in all individual expenditures (inbound tourism, cruise, transport, domestic tourism, investment). Compared to 2022, where the direct impact was €23.9 billion, the increase in 2023 was also 19.5%, with significant increases in all individual costs. Noteworthy in 2023 is the increase in investments to 5.1 billion euros, of which around 2.5 billion euros correspond to domestic added value, compared to 2.7 billion and 1.2 billion euros respectively in 2019 and 3.7 billion euros and 1.7 billion euros in 2022. Another positive performance, with receipts more than doubling in 2023 is linked to the cruise industry. With 3.3 million arrivals and €847 million in receipts last year, the cruise was up 64% and 102% respectively over 2022 and 26% and 70% over 2019.
The indirect contribution
Based on the multiplier for the sector used by IOBE in combination with the multipliers of the individual sectors of the Greek economy of KEPE (accommodation, catering, sea-road-air transport, trade, entertainment, travel agencies, car rental, conferences), the resulting tourism multiplier amounts to 2.65 which means that for every 1 euro from tourism activity, an indirect and induced additional economic activity of 1.65 euro is created and therefore, overall, the GDP increases by 2.65 euro. Therefore, the tourism activity multiplier ranges between 2.2 and 2.65. Taking into account the multiplier benefits, the total contribution of tourism to the country’s economy in 2023 is estimated between 62.8 billion euros and 75.6 billion euros, figures corresponding to between 28.5% and 34.3% of the GDP. The corresponding figures for 2022 were between 52.6 billion-63.3 billion euros, which correspond to 25.4% to 30.6% of GDP, while for 2019 they were 50.8-61.2 billion. euros corresponding to 27.7% to 33.4% of GDP.
Source: RES-MPE
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