Gross Domestic Product (GDP) and Private Consumption in the main tourism markets for Greece and Greek Tourism are expected to remain at the same levels in 2024 as in 2023. At the same time, prices of energy products, transport costs and inflation, in general, are expected to follow a downward trend, while the euro is expected to remain at competitive levels against the major international currencies.
Therefore, according to the INSETE report “Developments in the global economy and in the countries of origin of inbound tourists to Greece”, in 2024, the demand for tourism services in the main markets of inbound tourism in Greece is not expected to be substantially affected by the macroeconomic environment. The development of inbound tourism will again depend on the maintenance and further strengthening of the international competitiveness of the Greek tourism product. A prerequisite for achieving this is a targeted strategy, which SETE has defined in five central pillars, including: infrastructures, investments and competitiveness, effective destination management, the labour market and sustainability.
On the occasion of the publication of the report, Mr Elias Kikilias, Director General of INSETE said, “Economic developments in the global economy and particularly in the main countries of origin of our visitors have a direct impact on tourism demand. Continuous monitoring of macroeconomic developments and prospects is essential for early diagnosis of changes and corrective action. Competitiveness, resilience and adaptation are the key words for Greek tourism to maintain its strong position in the global tourism market, in the midst of an unstable and rapidly changing environment.”
As regards the developments and prospects in the economies of some of the main inbound tourism markets in Greece, the following are briefly mentioned:
Euro area
Greece received approximately €7.7 billion from inbound tourism from the Eurozone countries in 2019 (44% of the total).
Proceeds from the Eurozone in the first ten months of 2023 amounted to €8.8 billion, up +17% compared to the same ten months of 2019, while international air arrivals from Eurozone airports for the whole of 2023 showed an increase of 13.7% compared to 2019.
In 2024, Eurozone Gross Domestic Product (GDP) is estimated to grow by 0.7% (IMF: 1.2%), down from 0.4% in 2023 (IMF: 0.7%). Private consumption is expected to grow by 0.3% in 2024, up from 0.2% in 2023.
Germany
Greece received around €3 billion from inbound tourism from Germany in 2019 (16.7% of the total).
Proceeds from Germany in the first ten months of 2023 amounted to €2.9 billion, up +17% compared to the same ten months of 2019, while international air arrivals from German airports for the whole of 2023 showed an increase of 8.5% compared to 2019.
Despite the very large restructuring taking place in Germany in an adverse geopolitical and economic context, a marginal recovery of 0.1% in Gross Domestic Product (GDP) is expected in 2024 (IMF: 0.9%), compared to a decline of -0.3% in 2023 (IMF: -0.5%). Private consumption is expected to decline in 2024 by -0.3%, compared to -1.1% in 2023.
France
Greece received approximately €1.1 billion from inbound tourism from France in 2019 (6.2% of the total).
Proceeds from France in the first ten months of 2023 amounted to €1.1 billion, up +29% compared to the same ten months of 2019, while international air arrivals from French airports for the whole of 2023 showed an increase of 20.5% compared to 2019.
France’s expected Gross Domestic Product (GDP) growth in 2024 is 0.8% (IMF: 1.3%) compared to 0.6% in 2023 (IMF: 1.3%). Private consumption is expected to grow by 0.6% in 2024, compared to 0.5% in 2023.
Italy
Greece received approximately €1.0 billion from inbound tourism from Italy in 2019 (5.6% of the total).
International air arrivals from Italy’s airports for the whole of 2023 showed an increase of 16.0% compared to 2019.
Italy’s expected Gross Domestic Product (GDP) growth in 2024 is 0.8% (IMF: 0.7%) compared to 0.5% in 2023 (IMF: 0.7%). Private consumption is expected to grow by 1.1% in 2024, compared to 1.2% in 2023.
United Kingdom
Greece received around €2.6 billion from inbound tourism from the UK in 2019 (14.5% of the total).
Proceeds from the UK in the first ten months of 2023 amounted to €2.5 billion, up +32% compared to the same ten months of 2019, while international air arrivals from UK airports for the whole of 2023 showed an increase of 24.4% compared to 2019.
Following the amendment of the UK data, which showed a faster recovery following the lifting of the anti-COVID-19 measures, Gross Domestic Product (GDP) of UK is expected to grow by 0.4% in 2024 (IMF: 0.6%), down from 0.5% in 2023 (IMF: 0.5%). Private consumption is expected to grow by 0.2% in 2024, up from 0.3% in 2023.
USA
Greece received about €1.2 billion from inbound tourism from the US in 2019 (6.7% of the total).
Proceeds from the US in the first ten months of 2023 amounted to EUR 1.1 billion, up +7% compared to the same ten months of 2019.
Expected US Gross Domestic Product (GDP) growth is expected to moderate to 0.8% in 2024 (IMF: 1.5%) from 2.0% in 2023 (IMF: 2.1%). Private consumption is expected to grow by 1.5% in 2024, down from 2.0% in 2023.
