The tourism activity in Greece has evolved into a driving force of the Greek economy in recent years, with the multiplier that records the effect of tourism on the GDP recording a peak performance for 2023, as reflected in the latest study of the Institute of the Association of Greek Tourism Enterprises ( INSETE) with the theme “The contribution of tourism to the Greek economy in 2023”.
Every 1 euro from tourism activity increases the GDP of the Greek economy by 2.65 euros
Specifically, based on the multiplier for the sector used by IOBE in combination with the multipliers of the individual branches of the Greek economy of KEPE (accommodation, catering, sea-road-air transport, trade, entertainment, travel agencies, car rental, conferences) , the resulting multiplier of tourism amounts to 2.65, which means that for every 1 euro of tourism activity, an indirect and induced additional economic activity of 1.65 euro is created and thus, 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.
The direct contribution of tourism to Greece for the previous year, this amounted to 28.5 billion euros
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.
An increase in the cost of holidays per day leads to a limitation of the length of holidays
Individual, interesting conclusions emerge from the calculation of the Average Per Capital Expenditure (ACP), which is directly related to the Average Length of Stay (ATP) at the destination. In particular, the MKD, at 605.8 euros in 2023, recorded a small drop (-2.3%) compared to 2022, while the MDP also saw a decrease from 7.8 per 7 nights last year.
In other words, it is observed that the increase in the daily expenditure of tourists is accompanied by a proportionally greater reduction in the duration of their trips, which is an indication either that the increase in the cost of holidays per day leads to a limitation of the duration of the holidays, with the result that the total cost or that short-term holidays (city breaks) are gaining market share over holiday holidays which have a higher expenditure due to a longer duration.
The same is the case in relation to 2019, although the reduction of the MDT – from 7.4 nights in 2019 to 7 nights in 2023 – is proportionally smaller than the increase of the MDT (from 76.1 euros in 2019 to 87 euros in 2023 ). This fact is probably due to the inflation of the years 2022 and 2023, but also to the increased trend recorded for travel and vacations following the coronavirus pandemic.
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