The outlook for Greek tourism appears optimistic, according to the January 2026 Economic Conditions Survey by the Foundation for Economic and Industrial Research (IOBE), with the business expectations index for hotels, restaurants, and travel agencies showing a significant increase and projections for demand in the coming months being “explosive.”
More specifically, the business expectations index in the Hotels – Restaurants – Tourist Agencies sector moved sharply upward and was formed at 98.4 units, from 79.5 units in December, a change that reflects the change in climate, with businesses appearing optimistic about their performance in the new year.
Although the outlook for businesses remains negative, at a level of -19 points (from -20 points), the outlook for current demand has softened slightly to -19 points, from -23 points. However, what makes the difference is the forecast for the short-term development of demand, which shows a sharp increase of +42 points, from -11 points last month. Predictions, which may result from the increased interest, as reflected in early bookings for this summer season.
The employment front also shows positive predictions, with the negative sign of December (-14 points) giving way to a positive sign (+14 points). At the same time, however, the price index remains at high inflation levels (+26 points), a factor that indicates the burdens on the operating costs of businesses.
The Business Expectations Index for Services fell slightly in January, to 114.6 points, from 116.7 in December. Of the individual variables in the index, positive assessments of the current situation of businesses weakened slightly, positive assessments of current demand fell accordingly, while, on the other hand, short-term forecasts improved significantly.
Small decline in the economic sentiment index and weakening of consumer confidence
According to the study by the IOBE, the economic climate index declined slightly in January, standing at 105.4 points, compared to 106.9 points in December. The decline came from a weakening of expectations in Services and a downward trend in consumer confidence, with expectations in Industry remaining essentially unchanged. In contrast, in Construction, private projects continued their upward trend with the relevant index reaching one of its highest performances over time, while in Retail trade, there was a slight improvement.
Household consumers in Greece remain the most pessimistic in the EU, expressing more negative forecasts for their household finances compared to the previous month, as well as the overall economic situation in the country, while their intention to make major purchases is also weakening.
The new year begins, therefore, with households being more cautious, while the picture remains generally stable in businesses. In the coming months, the economic climate is expected to be determined by factors such as inflation, investment trends and opportunities, as well as developments in the European and global economy, where the situation remains volatile.
