Study: Tourism Contribution to Greece’s GDP Hit 17 Billion Euros in 2014

Tourism directly contributed 17 billion euros in GDP for Greece in 2014, or some nine percent of Greece’s total GDP, according to a study released today by SETE Intelligence (InSETE), the research department of the Greek Tourism Confederation.

The study highlighted that its direct and indirect contribution to the economy stands at 20 to 25 percent of GDP (total contribution of Greek tourism to GDP is estimated between 37 and 45 billion euros).

According to the study, tourism in 2014 showed growth of 11.3 percent or 1.8 billion euros (a rise from 15.2 billion euros of direct contribution to GDP in 2013 to 17 billion euros in 2014) when the total GDP is estimated to have decreased by 3.5 billion euros in nominal terms and increased by some 0.6 percent in real terms due to deflation.

Referring to the indirect benefits of the sector, the study revealed that each 1 euro of tourism activity generates 1.2 to 1.65 euros of additional economic activity. As a result, for each 1 euro of tourism revenue, the country’s GDP increases by 2.2 to 2.65 euros.

InSETE underlined in the study that tourism directly contributes some 50 percent of the GDP of the island regions of Crete, South Aegean and Ionian. “These regions are among those with the highest per capita GDP in the country, supporting the view that tourism leads to improved living standards of the areas in which it develops,” InSETE noted.

With regards to tourism’s contribution to employment, during peak season and including jobs in the food industry, it was responsible for 30 percent of paid employment positions in the private sector.

According to the latest data available for 2014, which covers the first 11 months of the year, arrivals from inbound tourism increased by 23 percent and revenue grew by 13 percent compared to 2013.

“Since the January-November period covers the 98 percent of (total) tourism arrivals and 99 percent of revenue, we estimate that for 2014, arrivals will reach some 22 million and tourism receipts will add up to some 13.2 billion euros. Both figures are a record for incoming tourism to Greece.”