BMI Report Sees Upsurge in Arrivals to Greece Between 2015 and 2018
With Greece estimated to have finally returned to economic growth in 2014, the outlook for 2015-2018 is looking relatively positive, according to Business Monitor International’s (BMI) Greece Q1 2015 Tourism Report.
A member of Fitch Group, Business Monitor International is an independent provider of country risk and industry analysis specializing in emerging and frontier markets.
“Greece’s wealth of natural, archaeological and cultural attractions have made it one of Europe’s most popular destinations for decades,” BMI said in the report’s summary.
According to BMI, the flow of tourists to Greece was reduced abruptly as a result of the political unrest relating to two consecutive EU bailouts and austerity programs as recently as 2012.
“However, with political and economy stability in Greece finally re-establishing themselves, BMI expects to see an upsurge in tourist arrivals between 2015 and 2018 of around five percent year-on-year. We forecast that arrivals will surpass pre-crisis levels, nearing 20 million by 2018,” it is underlined in the report’s summary.
“Tourist arrivals are set to increase healthily over this period, drawn by low prices and an established product”.
However, as noted by BMI, lower prices make investment in the industry less attractive in the short term and the possible introduction of higher hotel rates in 2015 will further squeeze profitability for international investors.
In addition, it is mentioned that “stubbornly high unemployment and sluggish domestic economic performance” in Greece will mean that outbound travel will remain relatively static over the same period, though there could be some pick-up in departures in 2018 depending on the progress of the national economy and the unemployment rate in particular.