Hotel Market Beat 2023 Q1 - Greece
Remarkable Recovery of Greek Hospitality Sector Despite Ongoing Challenges
C&W Hospitality Market Beat – Greece Q1 2023
While the Greek hospitality industry is facing staff shortages and rising operational costs, the sector continues to show remarkable recovery after the pandemic. According to the Bank of Greece, the tourism sector in Greece experienced a surge in activity during Q1 2023, with international visitor arrivals soaring by an impressive 74.7% compared to the same period in 2022. the turnover of hospitality enterprises grew by 28.6% in Q1 2023 (year-on-year), to reach €375 million, with Thessaloniki-based enterprises recording the highest increase at 70.9%. Similarly, restaurant businesses reported a 27% increase in turnover, totalling €1.5 billion during the same period.
In terms of hotel performance, the occupancy levels of upper-upscale properties in central Athens and Thessaloniki experienced a significant increase of 94% and 15%, respectively. Additionally, the Average Daily Rate (ADR) for these properties saw a rise of 24% in Athens and 12% in Thessaloniki during the same period. This upward trend in both occupancy and ADR, compared to the previous year's performance, highlights the growing attractiveness and competitiveness of Athens as a tourism destination.
The robust recovery of tourism and hotel performance in Greece is paralleled by a significant surge in development activity. During Q1 2023, there were more than 170 hotel development projects receiving approval across the country, with construction set to commence in the near future. In the Attica region, at least six entities obtained development approval, while Thessaloniki received approximately nine approvals. This demonstrates the growing interest and investment in the Greek hospitality sector, as stakeholders recognize the potential for continued growth and opportunities in the market.
Looking ahead, while there are ongoing geopolitical tensions and the approaching election cycle in Greece, the hospitality industry is anticipated to maintain its growth trajectory. With the influx of higher-spending visitors and increased traffic, there is potential for the industry to reach the €20 billion milestone for the first time. While challenges persist, the positive performance and growth in Athens' hospitality market exemplify its resilience and ability to thrive.
Nicky Simbouras
Managing Director at Cushman & Wakefield Proprius
Cushman & Wakefield
