Ensuring sustainability in tourism’s ‘landmark year’
In two-day Kathimerini conference, speakers note exponential growth, discuss ways to preserve authenticity
Top thinkers, leaders from the political and business world, and individuals with innovative ideas and influence in the hospitality industry presented their views on how to redefine the future of Greek tourism in a two-day Reimagine Tourism in Greece conference on Tuesday and Wednesday, organized by Kathimerini and the Greek Tourism Confederation (SETE).
On the last day of the conference, speakers showcased best practices for managing present challenges.
Yiannis Paraschis, president of the Greek Tourism Confederation (SETE) and CEO of Athens International Airport, predicted that 2024 will be a “landmark year” for Greece’s tourism while cautioning against taking the solid growth of the sector for granted.
During a fireside chat with Skai TV news presenter Sia Kosioni on at the airport’s new Aegean Airlines hangar on Wednesday, Paraschis emphasized the need for measures to protect the industry’s competitiveness. “It is clearly a warning bell that trends are changing,” he said when asked about the decrease in tourism revenue this July compared to the same month last year. He said that summer tourism may not be as popular as it once was due to overcrowding and high temperatures.
“But it also indicates that what we experienced, and probably took for granted, after the pandemic – that every year we would do better – is not guaranteed. Therefore, we need to focus on what we call ‘value for money’ in Greek tourism and the overall competitiveness of our offerings,” he added.
Paraschis said that SETE has called for specific measures in targeted destinations to alleviate some of the pressure and protect the tourism product. “In tourism, the degradation of a destination’s functionality for residents and workers directly impacts the tourism experience,” he said, citing the regulation of cruise ship arrivals as an example.
An important part of the conference was the presentation of an analysis on Greek tourism by Leonidas Papaioannou, managing director at the Government & Public Sector division of PwC Greece, which highlighted its specificities.
According to the research, Greek tourism is characterized by geographical particularities: 77% of tourist arrivals are concentrated in just five regions of the country. The majority of tourists are still looking for “sun and sea,” while city break tourism has recently been created in Athens and Thessaloniki.
“It is therefore difficult to see with this model [of tourism] a development in which the distribution of flows will be balanced and fair, so that all regions of Greece converge,” he told the conference.
Tourism’s seasonality also appears to have an impact on employment, with employees working overtime for five months and then experiencing seven months of unemployment or parallel work on the black market. This trend affects the business model of tourism, Papaioannou said. The increased movement of tourists at specific times and geographical intervals requires new infrastructure to sustain it, while climate change means that businesses must plan ahead to be able to face the new challenges. At the same time, the state needs better management and a high level of coordination.
To tackle the challenges, Papaioannou recommended the temporal and spatial expansion of tourism in the country, the adoption of sustainable development practices so as not to alter the character of the destinations, training local businesses to protect and promote local culture to target new groups of people, and improving working conditions for employees by providing incentives to businesses and intensifying controls.
According to the research, Greek tourism is characterized by geographical particularities: 77% of tourist arrivals are concentrated in just five regions of the country
In the next panel, “Investing in Tourism, Investing in Greece,” Adrian Messerli, EMEA president of Four Seasons Hotels, said his company has identified valuable partners and attributes that make Greece an attractive investment destination, but also mentioned certain limitations.
“When developing luxury tourism, one issue is the lack of parking spots for private jets. These are the challenges we are working around,” he said during a discussion moderated by Financial Times journalist Eleni Varvitsioti.
“Staffing in a seasonal location like Greece is a challenge [too], but it is also an opportunity,” Messerli said, noting their strategy to relocate the workforce to different areas during the offseason. He emphasized that the quality of the staff in Greece is exceptionally high. “One element we’ve found overwhelmingly positive is the people; they have a genuine approach towards service,” he said. “The heartbeat of a hotel will always be the people that work in it,” he added.
Messerli also announced that Four Seasons plans to launch a hotel on the Aegean island of Mykonos in 2025.
On the same panel, Andreas Andreadis, CEO of Sani/Ikos Group, said Greece’s comparative advantages include its natural beauty and the availability of space for development, “which is not the case for Spain, Italy or Portugal.” He further emphasized the importance of hospitality, stating that Greeks often underestimate how vital this attribute is for foreign guests. Addressing the challenges, Andreadis pointed out that high taxes, particularly payroll taxes and VAT, pose significant obstacles.
The final panel discussion, moderated by Nektaria Stamouli, deputy editor of Kathimerini English Edition, followed a recent public consultation on a new special spatial framework for tourism which has come under fire by critics who say that its one-size-fits-all approach fails to consider the effects of short-term rentals advertised on platforms like Airbnb on local housing markets and tourism dynamics.
Former prime minister Panagiotis Pikrammenos said that the current regulatory framework is outdated and must reflect the distinctive characteristics of each area. “There should not be blanket provisions; each area has its own uniqueness,” he noted.
The historical context of tourism’s impact was highlighted by Demetrios Athanasoulis, director at the Ephorates of Antiquities for the Cyclades and the Dodecanese. “Tourism has valuable effects that extend beyond a single sector,” he remarked, commending the government’s commitment to preserving local landscapes.
Nikos Zorzos, the mayor of Santorini, stressed the importance of spatial planning for “rational” development. He said the recent framework was short on specifics, arguing that “we face significant spatial chaos due to generalities in the framework and a lack of enforcement mechanisms.” Zorzos also called for local governments to be permitted to impose tourism fees to fund essential infrastructure improvements.
George Hatzimarkos, regional governor of the South Aegean, reiterated the need for targeted solutions to the unique challenges each island faces.
An important announcement came on the first day of the conference, when Prime Minister Kyriakos Mitsotakis announced new restrictions on building outside designated zoning areas, in a move aimed at regulating construction and protecting the islands. The new regulation that will soon be submitted to Parliament will abolish the so-called “right of passage” for landlocked plots.
