The main issue of the lack of spatial planning was highlighted as a major priority by SETE President Yannis Paraschis, speaking at the closed session of the 33rd Ordinary General Assembly of the Association, in which he described the development of Greek tourism over the previous year as extremely positive. The SETE president emphasized the almost 6% increase in tourism revenues, noting, however, that reversals and uncertainties remain.
Mr. Paraschis emphatically called on the government to introduce regulations on:
-short-term rentals
-taxation of the sector
-the lack of manpower
-infrastructure, with particular reference to ports, marinas, air traffic control and inspectors, and the Athens metropolitan conference center
-reciprocity and transparency of all types of fees
-sustainability
The president of SETE also requested:
- increased aid rates for small and very small tourism units, especially in island and mountain areas,
- special aid schemes for thematic and sustainable tourism,
- incentives for the green transition and digital upgrading of tourism businesses,
- flexibility in eligible expenses and adaptation to the specificities of the sector,
- support for investments that extend the tourist season,
- as well as faster evaluation and disbursement of aid.
The speech
The speech by Mr. Yannis Paraschis is as follows:
“Thank you very much for attending the Closed Session of the 33rd Regular General Assembly of SETE. Our annual meeting is not just an institutional milestone. It is a time when the tourism sector comes together to assess the challenges, evaluate the achievements and, above all, collectively chart its course. The previous year confirmed the resilience of Greek tourism in a time of multiple upheavals and uncertainties. The geopolitical and economic instability of the period is not temporary.
They now form the new backdrop against which international developments are taking shape and, therefore, the environment in which we are called upon to develop as a tourism sector. The ongoing war in Ukraine (which is why the Prime Minister had to cancel his attendance at today’s Open Session of our General Assembly and will be represented by the Deputy Prime Minister, Mr. Hatzidakis), the intensifying destabilization in critical areas of the Middle East, and the policy of the United States to reimpose tariffs on strategic sectors are all turning points. This new phase of geo-economic competition, as well as natural phenomena, whether related to the climate crisis or other geophysical factors, such as those we experienced this year in Santorini, are already affecting tourism and will have a much greater impact in the future than it may seem at first glance. This is because tourism development depends on three volatile conditions: disposable income, geopolitical stability, and a climate of trust. And in this new complex situation, Greece is called upon to redefine its position, always operating with an awareness of international shifts.
The past year has proven in practice that Greek tourism is not just a strong sector of the economy but also its stabilizing force. Our sector has expanded its footprint, confirmed its contribution, and provided substantial support for the country’s social and macroeconomic balance. Specifically, foreign arrivals (including cruises) exceeded 40.7 million, a performance that reflects both the continued strong demand and the ability of Greek businesses to meet increased requirements. Overall, tourism revenues for 2024 amounted to €21.7 billion, an increase of 5.4%. With a direct contribution of €30.2 billion in 2024, corresponding to 13% of GDP, and a significantly higher indirect total contribution to the local economy, tourism is a catalyst for the country’s economic development.
Incoming tourism accounts for 84.4% of tourism receipts, covering 71.5% of the goods deficit. In addition, the sector supports 16.5% of employment, creating over 700,000 jobs at the peak of the tourist season, confirming its contribution not only to public revenue but also to the sustainability of the labor market. Similarly, the outlook for 2025 continues to be positive, as evidenced by data from INSETE and the Bank of Greece, which show that from the beginning of the year until the beginning of June, international air arrivals increased by +7% compared to 2024.
In terms of travel receipts, in the period January–March 2025, they amounted to EUR 1.073 billion, an increase of +4.4% compared to the same period in 2024. At the same time, airline seat capacity for the period March–October 2025 shows an increase of 5.3%, which makes us cautiously optimistic, but always careful in our estimates.
Because behind the positive assessment, both for last year and this year’s estimates, there are complex and pressing challenges that are already casting their shadow and will affect us even more from 2026 onwards, which we cannot ignore. In this environment, SETE’s priorities and demands for 2025 are clearly defined and based on ongoing institutional dialogue with the relevant ministries and the formulation of positions in cooperation with our sectoral associations and the sector as a whole.
I will start with issues relating to the competitiveness of the tourism product. Perhaps the most important structural issue that remains unresolved and affects investment and competitiveness is spatial planning. Spatial planning is the foundation for sustainable development and legal certainty. The establishment of a Special Spatial Framework for Tourism, which remains pending, is absolutely necessary in order to provide a clear and stable framework for tourism investment. At the same time, harmonization with Local Urban Plans is required to avoid contradictions and arbitrary interpretations that create uncertainty and distortions. Without legal certainty, serious investments will not be made and the carrying capacity of destinations will be jeopardized.
On the issue of short-term rentals Short-term rentals are now a global trend that competes with traditional hotels. In fact, according to INSETE data, the number of short-term rental beds in our country probably exceeds that of hotels during peak season. This uncontrolled growth of short-term rentals in several areas of the country has caused distortions both in the tourist experience and in the daily lives of residents. The initiatives taken by the government, and in particular by the Ministry of Tourism, on this issue in recent years are noteworthy. However, SETE has a firm position in favor of a robust regulatory framework that separates professional from private activity, ensures tax equivalence, promotes the effective use of exploitable land, and protects housing and social cohesion. We have submitted specific positions on the issues of specifications, taxation, and the necessary controls on accommodation offered by digital platforms.
The imposition and successive increases of the Resilience Fee, the increase in the tourist tax without the possibility of meaningful consultation and without clear reciprocity, have highlighted a deeper problem: the need for a more predictable, fair, and participatory tax policy for tourism. SETE calls for a redesign of the relevant policies to ensure that any additional burden is returned to a significant extent to local communities by strengthening local infrastructure in areas that welcome visitors.
We are currently working with INSETE and PWC on a study to document and highlight the competitiveness gap resulting from the overall taxation of Greek tourism products compared to our competitors in the Mediterranean. We are calling for a redesign of taxation and charges with the aim of rationalizing and restoring the balance between fair and proportional participation of tourism in the fiscal burden and in the financing of actions related to climate change adaptation, without jeopardizing the competitiveness of the sector.
As we have repeatedly emphasized and specifically proposed in the Greek Tourism 2030 Study, upgrading infrastructure is crucial for the competitiveness and sustainability of the tourism product. While private investment is booming, we are lagging behind in upgrading public infrastructure. We need targeted interventions in ports, marinas, road networks, water supply, sewerage, waste management, and energy.
The reciprocity of fees must ensure that the relevant resources are returned to projects and services that enhance the quality of tourist destinations.
Allow me here to focus on three specific examples
-The need to upgrade port and other infrastructure, which was so highlighted this year in the Santorini World Brand,
-The urgent need for exhibition and conference infrastructure at least on a par with our competitors in Athens and Thessaloniki if we want to play a leading role in the high-yield MICE sector
-But also the extremely critical sector of air navigation services, which needs system upgrades, additional staff, and clear guarantees of productivity levels to avoid the malfunctions and delays that affect two-thirds of incoming air travelers.
Friends,
Issues relating to sustainability are of great importance to us at SETE. The green transition of the sector requires the immediate activation of financial instruments that will support tourism businesses in adopting sustainable practices and technologies. We place great emphasis on this area, seeking both the institutional integration of sustainability into tourism policies and practical support for businesses through the METRON Sustainable Tourism self-regulation initiative. Along this path, METRON provides tourism businesses with the necessary tools to measure, improve, and strengthen their progress on sustainability indicators. We call on the entire sector, more businesses of all sizes and activities, to actively participate. Because the green and socially responsible transition of tourism is a common goal and an urgent necessity.
And we move on to the extremely critical issue of the labor market As we have often emphasized, the greatest asset of Greek tourism is its human resources. As a responsible social partner, we support every effort by the state to safeguard workers’ rights and promote healthy labor relations in tourism. In this context, we also support the work card. However, we request that the implementation of the Digital Work Card be adapted to the specific needs of the sector, ensuring workers’ rights without undermining the functionality of businesses. We need modernization and adjustments to working arrangements such as split shifts, preparation times, rest periods, etc., combined with targeted reskilling and upskilling programs, as well as more effective management of the call-in process, so that serious human resource shortages can be addressed. SETE, always in close and particularly constructive cooperation with POX, has intervened systematically and in a well-documented manner on all critical labor issues.
And allow me to close the chapter on priorities and demands with the issue of financing. The backbone of Greek tourism is the thousands of small businesses throughout the country. Lack of access to financing remains one of the biggest problems facing these businesses. In previous announcements of the Development Law and the NSRF programs, the majority of tourism applications were left without funding, creating a significant backlog of mature investment projects that have not moved forward. With the recently passed new Development Law, however, it is crucial to ensure that new resources and incentives respond to the needs and specificities of the tourism sector. Our goal is to see a Development Law that is truly friendly to tourism investment, both for large and, above all, small and medium-sized enterprises.
Specifically, our positions include
- increased aid rates for small and very small tourism businesses, particularly in island and mountain areas
- special aid schemes for thematic and sustainable tourism,
- incentives for the green transition and digital upgrading of tourism businesses,
- flexibility in eligible costs and adaptation to the specific characteristics of the sector,
- support for investments that extend the tourist season,
- as well as faster assessment and disbursement of aid.
It is important to emphasize that tourism cannot and must not be absent from the central planning for the sustainable development of the country. In the new Development Law, even symbolically, there is no explicit reference to tourism in the preamble. For a sector that contributes so significantly to the Greek economy, recognition of its role in the narrative of the productive model remains, in our opinion, absolutely necessary. With documentation, consistency, and a sense of responsibility, we are calling for an institutional environment that recognizes tourism not as an opportunistic pillar of growth, but as a foundation for the country’s productive and social cohesion.
Ladies and gentlemen,
Tourism in Greece has learned to survive under difficult and adverse conditions for many years. Now, it must learn and transform itself. It is not enough to maintain our very good performance; we must shape the standards of tomorrow. And that requires strategic choices. That is why we believe that now is the right time to update the Strategic Study for Greek Tourism 2030. After all, we have already exceeded the 2030 target for arrivals with 40 million in 2024.
We have a great opportunity ahead of us to shape the future of Greek tourism together, if we want:
- more revenue,
- a longer season,
- a wider geographical distribution
- a better environmental, social, and labor footprint,
Now that the international environment is changing in a way that will undoubtedly affect tourism, now that the European Union is drafting its first Strategic Map for Tourism under the guidance of the Greek Commissioner, guided by the risk of losing competitiveness for Europe that was so clearly highlighted in the Draghi and Letta reports, Now is the time to invest in our strategic direction. And it is up to all of us—the state, businesses, local communities—to turn it into a collective benefit. The future of tourism cannot be the product of complacency and a belief that success is a given. It will be the result of political choices, bold investment, and social responsibility. It will not come because we deserve it; it will come because we build it.
SETE must lead the dialogue for the future, offer solutions, build consensus, and mobilize those who often do not have a voice: small business owners, workers, regions, and local communities.
I will conclude with an important observation. In tourism, numbers matter. But they do not tell the whole story. The most important factor is trust. The trust that is built between the state and the investor, between the business and the customer, between the local community and the visitor. And this trust—in a time of multiple crises—is the strongest foundation we can build. Tourism is Greece’s most open, extroverted encounter with the world. Let us ensure that this encounter becomes more meaningful every year, with greater added value for our country, for the Greek economy and for society.
Thank you for your attention.”
