Greek tourism has entered a new phase of maturity, with record-breaking figures in 2025 confirming its position as one of the country’s strongest competitive advantages. However, a new study warns that Greece must translate continued growth into greater economic and social value without exhausting destinations, straining infrastructure or depleting the natural resources on which the industry depends.
The study, Greek Tourism: Achievements, Challenges and Prospects, by the Institute of the Greek Tourism Confederation (INSETE), examines the sector beyond visitor arrivals and revenue. It assesses employment, business competitiveness, destination management, infrastructure, environmental sustainability and public acceptance.
Its central conclusion is clear: the future of Greek tourism will depend not only on how many visitors arrive, but also on how the country manages growth and distributes its benefits.
Record numbers and the real economic value of tourism
Greek tourism reached historic highs in 2025. According to figures cited by INSETE, international arrivals excluding cruise passengers reached 37.98 million, rising to 43.3 million when cruise visitors were included.
Revenue from inbound tourism, excluding cruises, reached €22.6 billion, an increase of 9.8% compared with 2024.
Tourism directly accounted for 13% of Greece’s gross domestic product (GDP) in 2025, while its combined direct and indirect contribution approached 30%. Investment in the sector reached an estimated €5 billion.
These figures demonstrate tourism’s importance beyond hotels and restaurants. Visitor spending supports a broad network of businesses and professions, spanning transport, retail, agriculture and food production, construction and cultural services.
Tourism’s real economic value therefore depends not only on direct revenue, but also on how effectively the industry connects with the wider domestic economy.
However, rising visitor numbers do not automatically translate into greater value for individual destinations. The average length of stay fell from 7.4 nights in 2019 to 6.1 nights in 2025, a decline of 17.2%.
Uneven tourism distribution across Greece
INSETE identifies the uneven geographical distribution of tourism as one of the sector’s most significant challenges.
Eight of Greece’s 13 administrative regions account for just 10% of tourism revenue, while five islands attract 47% of international arrivals.
Figures cited by INSETE from the Special Spatial Planning Framework for Tourism show that 90% of municipal units, covering 95% of Greece’s territory, have little or negligible tourism development.
This imbalance suggests that Greece’s challenge is not simply the total number of visitors. Pressure concentrates in specific destinations and periods, while large parts of the country remain outside the main tourism flows.
Seasonality also remains a structural weakness. The third quarter of 2025 accounted for 52.4% of international arrivals and 52.5% of tourism receipts, although these concentrations had declined compared with 2019.
Greece therefore faces a twofold challenge. Popular destinations need better management of visitor flows, transport, waste and water resources. Meanwhile, less-developed destinations need investment, improved connectivity and tourism products capable of attracting visitors beyond the summer months.
Destination Management and Marketing Organisations (DMMOs) could play a central role in this strategy. According to INSETE, their responsibilities should extend beyond promotion to include strategic planning, coordination among stakeholders, data analysis and management of tourism flows.
Tourism depends on its workforce
Tourism cannot sustain its growth without a sufficient supply of skilled workers.
During the third quarter of 2025, employment in accommodation and food services reached 475,200 people, representing 10.8% of total employment in Greece.
The study also records improvements in employment quality. The proportion of full-time workers rose from 82.1% in 2019 to 90.4% in 2025, while the sector achieved a balance between male and female employment.
However, these improvements have not eliminated persistent labour shortages. In 2025, staffing gaps in Greek hotels accounted for 14% of available positions. Only 24% of hotel workers had graduated from tourism schools.
Seasonal employment makes it harder for workers to establish stable careers, while digitalisation and artificial intelligence continue to change the skills employers require.
INSETE argues that the answer must go beyond filling vacancies during peak periods. Greece needs to move from offering temporary jobs towards building long-term careers through training, continuous skills development and a longer tourism season.
The quality of hospitality depends on the quality of employment and on workers’ ability to remain in the industry and progress professionally.
Infrastructure remains a weak point in competitiveness
Greece ranks 21st globally in the World Economic Forum’s Travel and Tourism Development Index, according to the study. This places the country 38 positions above its ranking for overall economic competitiveness.
The result highlights the strength of Greece’s tourism product, but also the gap separating it from competitors such as Spain, France, Italy and Portugal.
INSETE identifies infrastructure and governance as major areas of weakness.
Tourism businesses invested an estimated €5 billion in 2025, including €2.8 billion in the hotel sector. However, private investment alone cannot compensate for deficiencies in public spaces and the networks that support the visitor experience.
Delays in air transport, staffing shortages and outdated air navigation systems, weaknesses in road and rail connections, and the needs of maritime transport all affect access to destinations.
Other priorities include water management, cleanliness, signage, accessibility and public cultural infrastructure.
The lack of an internationally competitive convention centre for major conferences also limits Greece’s ability to attract high-spending visitors outside the summer season. Modern marinas and cruise ports represent further opportunities that remain underdeveloped.
Taxation presents another challenge. Greece ranks fifth among seven competing countries for tourism tax competitiveness, according to the study.
The issue concerns not only the level of taxation, but also businesses’ ability to reinvest and operate profitably beyond the peak season.
Sustainability, public acceptance and artificial intelligence
Environmental sustainability will play a decisive role in the industry’s future.
According to INSETE, only 8% of Greek hotels hold sustainability certification, while 73% of tourism businesses have not set an emissions-reduction target for 2030.
Climate change, coastal erosion and growing pressure on water resources require systematic planning and long-term investment.
The establishment of the Special Spatial Planning Framework for Tourism provides a foundation for strategic planning after years of delays. Its effectiveness, however, will depend on implementation and the incorporation of its guidelines into local and specialised urban plans.
Unregulated construction outside designated development zones, particularly on islands, continues to place pressure on landscapes, public utility networks and available land.
Tourism’s relationship with local communities is equally important. The study finds that 82.4% of citizens view the sector’s economic contribution positively, although concerns about rents and the cost of living remain significant.
INSETE notes that many factors influence housing prices and living costs, meaning tourism alone cannot explain these pressures. Nevertheless, addressing the industry’s negative effects is essential to maintaining public support over the long term.
Technology adds another dimension to the challenge. Artificial intelligence is changing how travellers discover destinations, compare services and organise holidays.
INSETE identifies the development of a national tourism data hub, digital upgrades for businesses and workforce training as strategic investment priorities.
Expanding into markets such as China, India and Australia will also require better air connectivity and tailored promotional strategies.
Protecting Greece’s tourism reputation
Greece benefits from a strong international brand and highly positive visitor evaluations. The country scores 9.1 out of 10 for the visitor experience and records a destination recommendation index of 54.
However, this reputational advantage is not inexhaustible.
Maintaining it will require high-quality services, reliable infrastructure, protection of Greece’s natural and cultural heritage, and stronger links between tourism and local economies.
The next phase of Greek tourism will therefore depend less on pursuing visitor records alone and more on creating sustainable growth that delivers lasting benefits for businesses, workers, communities and the wider economy.
(Source: AMNA)
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