IOBE: Covid-19 Sends Greece Tourism Revenue Downward

Covid-19 is expected to lead to a 20 percent reduction in Greece’s tourism revenue this year compared to 18-19 billion euros in 2019, according to Nikos Vettas, head of the country’s leading think-tank, the Foundation of Economic and Industrial Research (IOBE).

Addressing the “Post-Pandemic Recovery of Black Sea Economies” webinar organized last week by the International Centre for Black Sea Studies (ICBSS) and the Black Sea Trade & Development Bank (BSTDB), Vettas said tourism-related revenue would reach approximately 3.5 to 4 billion euros.

Vettas attributes to the projected decline to that fact that Greece is expected to attract mostly younger travelers this year who overall spend less at the same time the bulk of the country’s tourism revenue is generated during the summer months to September the latest, giving the sector little time to recover lost ground.

“What is perhaps more worrying is not what will happen this year, which I think will also depend on developments in major markets for Greek tourism such as Germany, the United Kingdom or the United States, but what will happen in all the other countries in the next two years or later, whether this will be a shock that will remain with us for a longer period of time,” he said.

Vettas reiterated the IOBE’s estimate that the Greek economy would contract by 8 percent in 2020.