Greece’s Domestic & Outbound Tourism Volumes Declined Significantly in Recent Time, Finds Timetric
16 Aug 2012 • by Natalie Aster
Greece is the 17th most visited country in the world and ranked 19th in tourism receipts globally in 2011. The Greek travel and tourism industry contributed 16.5% to national GDP in 2011, and directly accounted for 18.4% of the country’s total employment. Furthermore, according to the World Travel & Tourism Council (WTTC), investments in Greek travel and tourism valued EUR4.0 billion (US$5 billion) in 2011, accounting for 14% of total national investments. During the review period (2007–2011), the total number of trips undertaken by residents, both domestic and outbound, decreased from 15.5 million in 2007 to 11.9 million in 2011, registering a CAGR of -6.47%. This decrease was primarily attributable to the economic downturn, high unemployment rate, and austerity measures imposed by the government.
The new report "Travel and Tourism in Greece: Key Trends and Opportunities to 2016" by Timetric states that inbound tourism reached record levels in 2011 with over 16 million arrivals. This growth was driven by the competitive prices of travel products and political unrest in northern Africa. The European region accounted for 92.3% of total arrivals in 2011. Though the political uncertainty in the country caused a slowdown in inbound arrivals during the first half of 2012, the Greek travel and tourism industry is expected to register strong growth following national elections and then nearly reach 2011 levels due to promotional offers provided by the country’s travel and tourism companies. The number of international tourist arrivals to Greece is expected to record a CAGR of 5.73% over the forecast period, to reach a projected total of 21.7 million arrivals in 2016. This increase is expected to be driven by the economic recovery of key source markets and government efforts to increase inbound tourism to the country.
As a result of economic recession, increasing unemployment, and decreasing disposable incomes among Greek residents, Greece’s domestic and outbound tourism volumes declined significantly during the review period. The country’s domestic tourist volumes decreased from over 14 million in 2007 to approximately 11 million in 2011, recording a CAGR of -6.40%; while the number of outbound trips from the country declined from 1 million in 2007 to just under 700,000 in 2011, registering a CAGR of -7.51%. The International Monetary Fund (IMF) expects Greece’s economic recovery to begin slowly in 2013 and accelerate only at the end of the forecast period. Domestic and outbound tourism volumes are therefore expected to only increase marginally during the initial years of the forecast period, before returning to something close to normal levels by 2016.
Travel and Tourism in Greece: Key Trends and Opportunities to 2016
Published: July, 2012
Price: US$ 500,00
As Greece continues to suffer from the effects of high debt levels and austerity measures, the Greek government is keen to maintain the steady growth of the country’s tourism industry. Notably, the government aims to create sustainable tourism infrastructure for all seasons, in order to cater to a diverse customer base and maximize the country’s tourism potential. In line with this, it is allowing foreign direct investment (FDI) in the majority of the country’s development projects, including the construction of hotels, resorts, conference centers, golf courses, marinas, spas, thalasso therapy centers, and recreational facilities. The government has also launched various marketing campaigns highlighting key tourism attractions in the country, such as the Parthenon in Athens, the Caldera of Santorin, and Myrtos beach, that have been targeted at key source markets for inbound tourism such as Europe and the US.
More information can be found in the report “Travel and Tourism in Greece: Key Trends and Opportunities to 2016” by Timetric.
To order the report or ask for sample pages contact [email protected]