Hospitality in Greece 2024–2025

Source: Athens Airport

Market Trends: Key Directions of Development

Greece’s hospitality industry is undergoing significant transformation, driven by global trends and a national strategy focused on sustainable, high-value growth.

Expansion of the Luxury Segment and International Investment

Greece continues to attract leading international luxury hotel brands that are expanding their presence in the country. These include Four Seasons, Hilton, Marriott, InterContinental Hotels Group, Six Senses, Aluma Hotels & Resorts, and Wyndham Hotels & Resorts. This trend is underscored by the fact that more than 150 new boutique hotels and resorts are expected to open in 2025 across mainland Greece and the islands. In addition, the redevelopment of the “Athens Riviera” continues to transform the capital’s coastline into a luxury destination, strengthening Athens’ position as a destination in its own right rather than merely a gateway to the islands.

The massive investments in the luxury segment reflect deep confidence among global players in Greece’s growth potential as a premium destination. This is not only about increasing capacity, but also about an overall upgrade of the country’s destination image. The shift aims to attract higher-spending visitors, which can drive increases in Average Daily Rate (ADR) and Revenue per Available Room (RevPAR), thereby maximizing the overall economic return from tourism. Greece is positioning itself in the global competitive landscape as a premium destination offering exclusive, high-end experiences.

Source: Bank Of Greece

Experiential and Sustainable Tourism

Demand for tourism experiences beyond the classic “sun and sea” model is steadily increasing. There is growing interest in eco-tourism (in the Peloponnese and northern Greece), wine and gastronomy tourism (in regions such as Nemea and Santorini), and cultural travel that combines history and heritage. The Ministry of Tourism has launched a “Green Tourism” fund to promote low-impact, high-value tourism. Greece is also collaborating with Mastercard on a sustainability initiative that highlights sustainable travel experiences benefiting local communities and preserving natural heritage.

This shift from mass, beach-based tourism to experiential and sustainable tourism is a strategic response not only to changing consumer demand, but also to growing concerns about overtourism and its environmental impact. Surveys show that 72.5% of Greeks are concerned about overtourism. Greece is seeking to create a more resilient tourism model that integrates environmental and cultural preservation with economic development, thereby ensuring the long-term sustainability of the sector. This approach allows the country to manage the negative impacts of mass tourism while enhancing its overall value proposition.

Technological Adoption and Digital Transformation

Greece is actively embracing the potential of artificial intelligence (AI), guided by a national strategy led by the Ministry of Digital Governance. Greek tourism startups are introducing innovative technological solutions to enhance services and guest experience, including smart systems, AI, big data management, and energy-saving solutions. Luxury hotels are already using AI-based predictive models for occupancy forecasting, pricing optimization, and market trend analysis.

Advanced technologies such as electronic check-in, mobile room keys, in-room controls (lighting, temperature, television) via dedicated apps, and mobile concierge services are already being implemented in hotels such as the Hellenic Vibes Smart Hotel in Athens. The adoption of advanced technologies is not only a tool for operational efficiency, but a critical strategy for addressing challenges such as labor shortages and improving the guest experience. This strategic move enables hotels to offer personalized services while maintaining operational efficiency, thereby enhancing competitiveness in the global market.

Extending the Tourism Season

Extending the tourism season is a critical factor in the success of Greece’s tourism industry. Studies indicate that climate change is expected to lead to a gradual decline in summer tourism in the Mediterranean, while increasing tourism in spring and autumn. This trend is expected to lengthen and flatten Greece’s tourism season through 2030.

Extending tourism into the shoulder seasons (April–May and September–October) is a vital strategy for reducing pressure on infrastructure during peak periods and stabilizing employment in the sector. This is a proactive approach to ensuring both economic and environmental sustainability, enabling more efficient use of resources throughout the year.

Emerging Markets and Destinations

Early bookings for summer 2025 are up by 8%, with strong demand from Europe, the United States, and increasingly from India and Southeast Asia. The U.S. market in particular is a major growth engine, with 1.54 million American visitors in 2024 generating €1.58 billion in revenue—a year-on-year increase of 15%.

The Greek government is working to distribute tourism activity more evenly across regions and throughout the year, including investments in less developed areas. Islands outside traditional cruise routes, such as Lesvos and Chios, are seeing increased popularity and visitor numbers. Expanding into new markets and developing emerging destinations are essential strategies for reducing reliance on traditional markets, increasing resilience to regional fluctuations, and alleviating pressure on overcrowded destinations.

Market Challenges: Obstacles and Opportunities

Alongside impressive growth trends, Greece’s hospitality industry faces several significant challenges that could affect its continued development. These challenges require strategic attention and innovative solutions to ensure the sector’s long-term sustainability and growth.

Labor Shortages

One of the most pressing challenges is a severe labor shortage, with an estimated 80,000 vacancies across the tourism and hospitality industry. There is significant difficulty in finding skilled and experienced workers for hotels and restaurants, as many locals prefer office jobs with fixed hours that do not require night or weekend shifts. The seasonal nature of tourism work exacerbates the issue, as workers are entitled to only three months of unemployment benefits at the end of the season, making it difficult to sustain themselves for the rest of the year amid rising living costs.

This chronic labor shortage poses a serious threat to the industry’s growth capacity and service quality. In response, the Greek government has taken several measures, including efforts to regularize the status of approximately 30,000 undocumented migrants and signing bilateral agreements with countries such as Egypt, Vietnam, Bangladesh, Georgia, India, and Moldova to facilitate labor mobility. These steps, alongside the integration of technologies such as AI-based workforce management platforms, indicate recognition that the issue requires structural, long-term solutions.

Overtourism and Supply–Demand Imbalances

The rapid growth of short-term rental (STR) properties, managed via platforms such as Airbnb, poses a competitive challenge to traditional hotels. In April 2025, active STR listings increased by 8% and available nights by 21%. In popular destinations like Athens and Santorini, STR supply now exceeds demand, contributing to lower hotel occupancy rates. In April 2025, occupancy in Santorini fell by 11% to 35%, while Athens saw a 4% decline to the same level compared to 2024.

The number of STR beds in Greece has doubled to around 800,000 over the past six years. This unchecked growth has intensified direct competition with hotels and contributed to overtourism. In response, the Greek government introduced new legislation aimed at curbing STR expansion. Measures include mandatory registration in a national accommodation registry, fines of up to €50,000 for unlicensed or non-compliant operators, restrictions in urban areas facing housing shortages, and limits on companies and legal entities managing no more than two properties on such platforms.

This decisive regulatory response reflects recognition that the issue extends beyond tourism and affects housing affordability and residents’ quality of life. It is likely to reshape competition within the hospitality market and help restore balance between traditional hotels and the STR sector.

Conclusions and Summary

Greece’s hospitality industry is on a strong and sustained growth trajectory, driven by robust global demand, expansion of the luxury segment, advanced technological adoption, and initiatives to extend the tourism season and distribute activity more evenly across regions. Arrival and revenue data, along with the rapid growth of 4- and 5-star hotels, point to a successful strategy aimed at attracting higher-spending visitors and maximizing economic returns from tourism.

Major cities such as Athens and Thessaloniki are strengthening their positions as standalone destinations, supporting year-round stability and growth. At the same time, the industry faces two major challenges: severe labor shortages and the impact of unchecked growth in short-term rentals. Addressing labor shortages requires long-term structural solutions, including international recruitment and technological integration. Meanwhile, regulatory intervention in the STR market signals a clear commitment to restoring balance in housing and tourism.

Overall, Greece is proactively shaping the future of its tourism sector, focusing on sustainable, high-value growth. The country’s ability to successfully manage labor challenges and regulate short-term rentals, while continuing to promote luxury, experiential tourism, and technological innovation, will define its ongoing success as a leading global tourism destination.

Questions & Answers

What are the leading tourism destinations in Greece today?
Popular destinations include Athens, Santorini, Mykonos, Crete, Naxos, Paros, Thessaloniki, Corfu, and Meteora. In addition, islands outside traditional cruise routes, such as Lesvos and Chios, are gaining popularity.

How is Greece addressing overtourism?
The government has limited daily visitors to the Acropolis, increased cruise passenger fees in destinations such as Santorini and Mykonos, and allocated revenues to infrastructure improvements. New legislation also restricts short-term rentals through mandatory registration, fines, and limits on property numbers.

Which hotel segments are growing fastest?
The 5-star and 4-star hotel segments are experiencing the fastest growth. Between 2019 and 2024, the number of 5-star hotels increased by 37% and rooms by 22%, while the 4-star segment grew by 14% in hotels and 8% in rooms.

Is there a labor shortage in Greece’s tourism industry?
Yes. An estimated 80,000 positions remain unfilled. The government is addressing this through migrant regularization and bilateral labor agreements with several countries.

Is Greece promoting sustainable tourism?
Absolutely. Greece promotes eco-tourism, wine and gastronomy tourism, and cultural travel as part of a broader experiential and sustainable tourism strategy. The Ministry of Tourism has launched a Green Tourism Fund and collaborates with partners such as Mastercard on sustainability initiatives.

How is climate change affecting Greece’s tourism season?
Climate change is expected to reduce peak summer tourism while increasing travel in spring and autumn, leading to a longer, flatter tourism season through 2030.

Is there a new tourism tax in Greece?
Yes. As of January 1, 2025, Greece increased tourism taxes, varying by accommodation type and season. For example, 5-star hotels charge €4 per night during peak season (April–October). A new cruise passenger tax has also been introduced, reaching up to €20 per person in certain destinations.