NBG: Greek Hotels Optimistic for 2023, Expect Strong Growth in Next Three Years
Greek hotel enterprises are set for a positive three years ahead on the back of a dynamic start this year, according to data released by the National Bank of Greece (NBG).
The study, which was carried out on a sample of 200 small and medium-sized hotel businesses and examined demand, prospects and challenges, found among others that despite the extension of the tourist season, the sector was still very seasonal compared to rival markets (Italy, Spain, Portugal) but that Greek hotels had performed better than before in the winter season.
A key finding of the study is that Greek hotels expect the dynamic start of the 2023 tourism season to continue for the rest of the year and they maintain expectations for growth during the next three years.
According to NBG analysts, turnover this year is expected to increase by 10 percent. Post-Covid recovery was boosted by stronger winter months from December 2022 to February 2023 with international arrivals up by 98 percent over the same three-month period of 2019-2020. According to NBG, the growth during December 2022-February 2023 was supported by an increase in arrivals from Greece’s main markets (UK, US, Germany, France).
Moreover, the study found that:
– Greek hotels increased sales by 19 percent in the winter months compared to 2019
– Greece slightly increased its share in the Mediterranean market but winter is still the slowest period accounting for 2 percent of all overnight stays compared to 15 percent on average in other Mediterranean countries
– the tourism season in 2023 started earlier and forecasts are positive for the year ahead. NBG analysts attribute the dynamic to more flight and hotel bookings compared to rival markets as well as to improved tourism-related infrastructure
– consumer confidence from the country’s main source markets was improving, which is expected to lead to further investments and new job openings.
On the downside, challenges include the serious staff shortages impacting the sector which have led to significant wage increases at island destinations for 2023.
The study did note that 28,000 recruitments were made in Greek hotels during February-March 2023 (over 18,000 last year and 16,000 in 2019), recording a 20-year high for the period – a fact that also contributed to the positive course of tourism.
However, hoteliers highlighted that the difficulty of finding staff stands out as a key obstacle for further development.
Hoteliers polled in the NBG study said the priority should now be on moving ahead with infrastructure upgrades (Crete and the Dodecanese islands), increasing air connectivity (Cyclades islands), developing alternative forms of tourism (Peloponnese) and formulating unique-to-location strategies.
“As the tourism product of Greece varies (depending on the destination), it is important that the drawing up of strategic priorities takes into account the local features of each destination, while also necessary is the launch of complementary development plans per region,” the study notes.
Love to know where they get the figures from things very slow here on Crete and the high taxes on fuel and goods making it hard for everyone and putting tourists off coming. Spain being much cheaper that’s a fact.