Alexander Pardalis, CFO
Executive Summary
The Greek Hospitality Sector has shown significant signs of recovery in 2021, with the gradual lifting of COVID-19 restrictions and the increased vaccination rates among the population. This positive trend is expected to continue in 2022-2023, with an estimated growth rate of 20% in the sector’s revenue compared to the previous year. The sector’s recovery is expected to be driven by the resumption of international travel, increased domestic tourism, and a higher demand for luxury accommodation options.
Market Overview
The Greek Hospitality Sector comprises hotels, resorts, and other accommodation establishments that cater to both domestic and international tourists. The sector’s revenue declined sharply in 2020 due to the COVID-19 pandemic, with a significant drop in tourist arrivals and bookings. However, the sector’s performance improved in 2021, with an estimated revenue growth rate of 12% compared to the previous year.
Tourism is a critical sector of the Greek economy, accounting for approximately 25% of the country’s GDP. The government has taken various measures to support the sector’s recovery, including the introduction of financial aid packages, tax incentives.
Market Trends
The Greek Hospitality Sector is expected to see several key trends in 2022-2023. Firstly, there is a growing demand for luxury accommodation options, particularly in the islands and coastal regions. These regions are popular tourist destinations and are expected to attract a significant number of international tourists in the coming years.
Secondly, there is an increasing interest in sustainable and eco-friendly tourism practices. Many tourists are looking for environmentally friendly accommodation options that prioritize sustainable practices and minimize their carbon footprint. Therefore, the sector is expected to witness a rise in the number of eco-friendly hotels and resorts.
Thirdly, the pandemic has accelerated the adoption of technology in the sector. Contactless check-in and check-out processes, online bookings, and mobile applications are becoming increasingly popular among tourists, and hospitality establishments are expected to invest more in technology to improve the overall customer experience.
Market Challenges
Despite the positive outlook for the Greek Hospitality Sector, there are several challenges that the sector may face in 2022-2023.
Firstly, the COVID-19 pandemic poses a threat to the sector’s recovery, particularly in the event of new waves and restrictions on travel. The sector must remain vigilant and responsive to the changing situation to ensure the safety of tourists and staff.
Secondly, the sector is also facing competition from other popular tourist destinations in the Mediterranean region, such as Spain, Italy, and Turkey. These countries offer similar tourism experiences and are likely to attract a significant number of international tourists. Therefore, the Greek Hospitality Sector must continue to innovate and offer unique and attractive tourism options to remain competitive.
Conclusion
Overall, the Greek Hospitality Sector is expected to show strong signs of recovery in 2022-2023, driven by the resumption of international travel and increased domestic tourism. By adopting innovative and sustainable practices, investing in technology, and offering unique and attractive tourism options, the sector can continue to grow and contribute to the Greek economy’s overall growth.