Greece aims for record tourism in 2024, targeting a 10% revenue increase amid local protests
Locals in Greece are protesting against “overtourism” with graffiti expressing “No more tourism” on shop fronts, driven by concerns over social and environmental impacts, as well as a worsening housing crisis. To address these issues, the government introduced a new tourist tax for March to October 2024, aimed at funding wildfire and flood recovery efforts linked to climate change. Additionally, Greece is pushing for sustainable tourism practices, including a regulatory study to manage accommodations and establish tourism limits through initiatives like the Special Spatial Framework for Tourism.
Business Implications
The new tourism tax and stricter regulations on short-term rentals will restrict accommodation availability and drive-up prices in popular destinations like Athens and Santorini, escalating costs for tourists. Anticipate a shift in demand towards more affordable alternative locations. B2C companies should consider pricing and promotions to counter potential declines in demand due to higher prices, while expanding into emerging destinations. Meanwhile, B2B firms can leverage government-backed infrastructure and sustainable tourism projects.
What’s behind the tax?
Greece climbed to ninth place globally in tourism, welcoming 32.7 million visitors in 2023, up from 13th in 2019. Early 2024 saw a 24.4% year-over-year rise in international arrivals, ranking third in Europe. Targeting over 35 million tourists and a 10% revenue increase to €22 billion in 2024, Greece faces accommodation shortages and infrastructure challenges in popular destinations, sparking concerns over sustainability and triggering protests from locals. In response, the government introduced a new tourist tax to fund climate recovery, which will also bolster government revenues. The government also plans to introduce cruise ship restrictions. The new Special Spatial Framework for Tourism aims to regulate short-term accommodations and promote geotourism and fishing tourism, ensuring sustainable growth aligned with local interests. This initiative will attract environmentally conscious travelers seeking authentic and less crowded experiences. Companies can capitalize on this by developing eco-friendly accommodations and offering unique, culturally immersive tours. Premium tourists may prefer exclusive, sustainable luxury options, while budget travelers seek affordable eco-friendly stays, creating opportunities for diverse market segmentation and targeted service offerings.
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