Alpha Bank Report Sees Robust Tourism Rebound for Greece

Tourism is set to play a leading role in the coming years as a driver of the Greek economy and to recoup losses and go positive following two years of Covid-19 restrictions and measures, found a report released this week by Alpha Bank.

Titled “Greek Tourism Industry Reloaded: Post-pandemic Rebound and Travel Megatrends”, the report examines the future of the Greek tourism sector providing useful insight to be used in government and municipal policies and in the formulation of future business models.

Key takeaways:

1) The Greek tourism industry is both internationally competitive and resilient to domestic economic fluctuations. On the downside, however, Greece has a high dependence on tourism which means that external demand shocks, including the collapse of travel, may lead to deeper recessions.

2) New research and studies of the Greek tourist market, its destinations and products are now urgently needed in order to support state policymaking and private sector actions. The changes in hospitality, recreation and leisure should also be effectively communicated through marketing strategies.

The report goes on to note that new studies should focus on the blueprints of individual brands, as well as the “mother brand” of the country.

Athens. Photo Source: Visit Greece / Y. Skoulas

At the same time, the main message of Greece’s new communication strategy should reflect all elements related to the term “sustainability” – social, environmental and cultural –  as well as to the unique traits of local communities, to well-being and authenticity.

3) RRF funding going into tourism-related projects should focus on unlocking untapped opportunities. According to Alpha Bank analysts, the allocation of resilience funds along with the re-evaluation of policies should focus on tourism as a potential vehicle for earning extra export revenues, creating jobs (especially for young people and women), and opening up remote rural areas.

4) Developing tourism products that focus on sustainability and personal development are crucial as customer preferences now shift to social and environmental criteria. Businesses in the hospitality, food services and transportation sectors should adjust their business models accordingly while integrating local community awareness and participation into their product design and governance.

Greece is among the countries to have benefited from the globalization of travel. In the aftermath of Covid-19, policymakers and tourism stakeholders should clearly set out the sector’s recovery plan and identify how tourism services can be improved and transformed to meet all potential challenges arising from global market shocks.