Tourism One of Three Drivers of the Greek Economy in 2022

Tourism, transport and trade are the three sectors spearheading growth for Greece and increasing their output (Gross Value Added) by 20.3 percent annually, said Alpha Bank this week.

More specifically, according to Alpha Bank’s weekly economic bulletin on Wednesday, in the first half of the year, GVA in the trade, hotels, F&B and transport sectors increased by 20.3 percent year-on-year, contributing 4.8 percentage points to total GVA.

Alpha Bank analysts said the contribution of these sectors is expected to remain positive in the third quarter of the year, reflecting strong tourism forecasts.

According to Bank of Greece data, travel receipts increased by 154 percent year-on-year over the January-July period compared to a corresponding increase of 147 percent last year, while incoming arrivals grew by 191 percent over 51 percent last year.

Tourism also supported jobs in the first half of the year with the hospitality and F&B sectors accounting for a 32 percent rise in employment in H1. In H1 2021, employment in hospitality and F&B was down by 21.6 percent.

Overall, employment in the first half of 2022 increased by 8.9 percent, or by 335,000 people y-o-y, compared to the same period of 2021.

Additionally, according to Alpha Bank analysts, tourism turnover increased at a stronger y-o-y rate in January-July compared to the same seven months in 2021, exceeding 2019 levels for the same period.

Recording the strongest performance in the seven months under review were enterprises offering accommodation and food services which came to 112 percent compared to an annual increase of 81 percent in the same period a year ago.

The report notes that sector turnover has fully recovered exceeding 2019 levels by 15 percent after plunging by 70 percent in 2020.