This year is the same or better than 2019

2023 is an ordinary year with its positive and negative points. It started well in February and March, saw a decline in May on some islands and in destinations in northern Greece and is now showing momentum as we move into the high tourist season. From the picture we have for September and October bookings, it looks like we’re going to pick up the numbers for 2019, despite the fact that it’s a complete reset year for our competitors, such as Turkey, Egypt and Spain. Especially for Turkey, at the moment it has 30% to 40% lower prices mainly in luxury services and that is why we are seeing a decrease in the Greek “five stars”. The second point to highlight is the bad weather that prevailed at the beginning of the season as a result of the destinations in northern Greece. To start welcoming visitors to the Balkans with a delay – especially after June 15th.

We are also witnessing a delay in the German market, which is reflected in the flights scheduled during this period, due to the fact that the German economy is in a state of recession and this creates an environment of uncertainty and insecurity for its citizens, which is reflected in the decline in tourism demand. But the markets of Poland, France and the Netherlands have recovered – which is very encouraging. We also see Israel moving dynamically, with direct flights, to Heraklion, Crete, Rhodes, Thessaloniki and, for the first time, to Ioannina. Athens is having a good year with visitors from the USA, Canada and a few other nationalities, while Thessaloniki is moving at a steady pace, with the first arrivals from the Balkan hinterland. But land tourism also shows remarkable mobility, with the Romanians being champions. However, we are facing an inflationary storm. Exorbitant increase in energy costs, constant appreciation of products, increase in interest rates and cost of money, and increase in wage costs in order for the firm to be able to attract suitable workers in number and skills are all very important factors. It makes sense that they are pushing up the prices, too.

In some cases, there may be exaggerations, but the POX recommendation was followed For reasonable increases of 10%-12% for 2023 occupancy it’s good. On the other hand, tour operators have asked for restraint for 2024 contracts and extension of offers so that packages are also competitive due to the burdens caused by energy costs (air and ferry) and against our neighboring competitors. As for the staffing problem, my personal assessment is that we will need at least two years to normalize the situation.

Therefore, in practice, workers from third countries should be systematically and without bureaucracy redistributed for the year 2024 in order to cover the needs of low specialization (manufacturing, cleaning, gardening, etc.). It is also necessary to return to the provisions of the pre-memorandum for a period of five months in the unemployment fund if the employee has worked for 150 days or more to remain in the specified market and not seek other exits due to the seasonality of the occupation. The third component is the departure due to the retirement of older and more experienced generations of employees who have not been replaced. This is why tourism education at all levels, specialization and attractive combination package of earnings, salaries and benefits are of great importance so that seasonality is not a disincentive factor for our young men and women who are looking for a stable job environment as possible. We must guarantee it and provide it to us. With their freshness, their appetite, their imagination and above all with their smile.

At the same time Germans They seem more conservative in their travel expenses than other Europeans especially in this period of crisis, instead British They have a higher psyche and remain in a strong mood to go abroad. between them Frenchwhich state, as well Italiansthat in the coming months they will opt for both international – and perhaps a little more – domestic travel to their very popular holiday destinations.

In any case, for the three nationalities, which constitute the three largest inbound tourism markets in Greece, with a market share in 2022 in terms of overnight stays and revenues of more than 44% of the total, the first and most fundamental factor for choosing the final destination is the so-called Quality-price ratioAnd this is now also confirmed by domestic tourism operators: “The relationship between quality of services and price plays a very big role, especially this year which is also the first normal year after the pandemic,” says the president of the Association of Greek Tourism Enterprises (SETE). Giannis ParachisIn a season without restrictions on travel, as competition has returned strongly in the Mediterranean, and Europeans say they want to travel, but it is clear that they are suffering from greater pressures in their financial resources.

However, despite the different picture that Greek destinations may present this year with fluctuations in arrivals and revenues, according to the words of the world of tourism and trade, the new head of SETE estimates that this year It will be at 2019 levels, maybe a little better. This conclusion emerges from both arrivals and collections so far, as officially recorded by the Bank of Greece for the first months of the year, and from air seat planning for the summer through October, an increase of 5, 6% of seats offered compared to last year’s historically high summer in terms of Scheduling and air access to island destinations. In addition, it is clear that the number of registered international air arrivals is 9.6% higher in this year’s five-month period from January to May than in the corresponding period in 2019 (the comparison was not made with 2022 because in the first months of last year it was still There are travel restrictions due to the pandemic), and it reached 5.3 million.

In its latest study (June 2023) on “Travel Behavior and Economic Conditions in Key Inbound Tourism Markets in 2023”, the Institute of the Federation of Hellenic Tour Operators (INSETE) stands very high on Greek tourism value for money. In all three nationalities of tourists – the Germans with €3.25 billion in revenue and a 18.9% share of the country’s total tourism revenue, the British with €3.13 billion and an 18.1% share of the total and the French with €1.28 billion in revenue and a 7.4% share – what matters most – at a rate of more than 50% – It is the ratio of quality to price. In particular, the percentages of Germans and French, who prioritize value for money for their holidays, are higher (54%), followed by the more relaxed Brits (50%).

This result is exactly in line with what local tourism agencies are putting forth much more this year, especially SETE itself, to adhere to “service at adequate prices that meets the corresponding quality”, as well as the particular need to improve the infrastructure and so the destinations so that the coexistence between residents and tourists is sustainable. .

Additionally, this particular finding comes at a time when it is the most exclusive destination in the country, and MykonosAt the beginning of the summer season, it witnessed a decrease in traffic due to a major reason, in addition to the increasing pressure on the infrastructure, as well as the increase in prices. And this is despite the fact that the tourists who choose the island are “thick wallets”, who – and they – attach special importance to the issue of the relationship between quality and price: they pay more, but they want the corresponding return.

The issue of Europeans’ disposable income and what they will ultimately spend on their holidays is also what will determine the course of tourism in the Mediterranean markets this year. However, according to estimates for our country, as demonstrated by the first meetings of the new leadership of the Ministries of Tourism and Finance a few days ago with SETE staff, the year 2023 will end with positive results in terms of arrivals and revenues.

Choose to travel

Overall, according to INSETE analysis, in the main analytics Factors Influencing European travel decisions are value for money and weather conditions, followed by relaxation, cultural experience, prices/special offers, life experience, ease of travel (eg direct flights), travel distance, good children/family facilities, ability to visit friends/relatives , recommendation from friends/relatives, outdoor adventure activities, online reviews, familiarity with the destination.

For the country’s top three markets, mainly Germans, the number one factor influencing their flights is the quality-price ratio (54%), followed by weather (40%), relaxing experience (28%), convenience of direct air travel and cultural experience (22%). %), life experience, ability to visit friends/relatives and good facilities for family holidays.

Brits also place a high value for money, at 50%, followed by weather (43%), relaxing experience (33%), cultural experience (26%), prices and specials (22%), life experience in general, good facilities for children, distance Travel, ease of travel and the ability to visit friends and family.

The French care more about their pocketbook this year and choose a destination based on value for money, which they prioritize at 54%, followed by experiencing weather and relaxation (33%), being able to visit friends and relatives (26%), cultural experience and outdoor adventure activities (22%), While slightly lower (18%) are the prices and special offers applicable to the destination.

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