Bank of Greece: Positive Airbnb effect on tourism and recovering real estate sectors

Α Decrease font Enlarge font
Bank of Greece: Positive Airbnb effect on tourism and recovering real estate sectorsTourism revenue in Greece reaches 15.6 billion euros during first 10 months of 2018

The positive effects of the so-called "Airbnb effect" on Greece's recovering real estate sector came under the Bank of Greece's (BoG) scrutiny, with the effects listed in the central bank's recent Interim Report on Monetary Policy 2018, Greek daily Naftemporiki reports.

The interim report makes a particular reference to Greece's growing tourism sector, as well as investments in high-end real estate.

Conversely, low-end properties, residential and commercial, continued to record very low demand in the country, due to restricted liquidity and disappearing disposable incomes by would-be buyers and investors over the past decade.

The Bank of Greece announced that in October 2018, the current account registered a deficit of €871 million, up by €82 million year-on-year, due to a deterioration mainly in the balance of goods, as well as in the secondary income account. By contrast, the services balance and the primary income account improved while tourism revenues grew to 1.41 billion euros from 1.19 billion euros in the same month last year.

It should be noted that changes in the primary and secondary income accounts were limited.

The deficit of the balance of goods grew, mainly due to an increase in the deficit of the balance of goods excluding oil, as the relevant imports rose at a much faster pace than the corresponding exports (at current prices). It should be noted that, at constant prices, total exports of goods increased by 10.9% (non-oil exports of goods rose by 13.5%) and total imports of goods rose by 15.4% (non-oil imports of goods grew by 22%).

The surplus of the services balance increased, which is mainly attributable to an improvement in the travel balance, as non-residents' arrivals and the corresponding receipts increased by 15.6% and 18.3%, respectively. An improvement was also recorded in the transport and other services balance, with sea transport receipts rising by 32% year-on-year.

In the January-October 2018 period, the current account showed a deficit of €2.1 billion, up by €1.6 billion year-on-year. This development is attributable to a deterioration in the balance of goods and the primary income account, which was partly offset by an improvement chiefly in the services balance, as well as in the secondary income account.

The deficit of the balance of goods grew by €2.2 billion, despite the continuing upward trend of exports, as imports also accelerated year-on-year (at current prices). At constant prices, total exports of goods increased by 7.9% (non-oil exports of goods rose by 11.3%) and total imports of goods grew by 7.3% (non-oil imports of goods increased by 10.5%).

The surplus of the services balance rose by €1.2 billion, on account of improvements chiefly in the travel balance and, secondarily, the transport balance, while the other services balance deteriorated. Specifically, non-residents' arrivals and the relevant receipts rose by 10.8% and 9.9%, respectively. Additionally, sea transport receipts also increased, by 14%.

Furthermore, tourism-related revenue for the 10-month period reached 15.6 billion euros against 14.2 billion euros in 2017 and 12.8 billion during 2016.

Lastly, the primary income account showed a deficit, which was larger than in the same period of 2017, mainly due to higher net interest, dividend and profit payments, while the deficit of the secondary income account declined, owing to an improvement in the general government component. 

Capital account 

In October 2018, the capital account showed a deficit, against a small surplus in October 2017, due to a rise in net payments of the other (excluding general government) sectors. In the January-October 2018 period, a surplus was registered, which however was lower than in the corresponding period of 2017. 

Combined current and capital account 

In October 2018, the combined current and capital account (corresponding to the economy’s external financing requirements) showed a deficit of €933 million, up by €152 million year-on-year. In the January-October 2018 period, the combined current and capital account recorded a deficit of €2.0 billion, compared with a deficit of €199 million in the same period of 2017. 

Financial account 

In October 2018, no remarkable changes were recorded under direct investment. 

Under portfolio investment, a net increase in residents' external assets is exclusively due to a rise of €1.1 billion in residents' holdings of foreign bonds and Treasury bills. A net decrease in their external liabilities is mainly attributable to a decline of €950 million in non-residents' holdings of Greek government bonds and Treasury bills.

Under other investment, a net decrease in residents' external assets mainly reflects a decline of €207 million in residents' deposit and repo holdings abroad. A net increase in external liabilities reflects mainly a net rise of €1.7 billion in non-residents' deosit and repo holdings in Greece (the TARGET account included).

In the January-October 2018 period, under direct investment, residents' net external assets and liabilities – the latter representing foreign direct investment – registered increases of €573 million and €3.0 billion, respectively.

Under portfolio investment, a net increase in residents' external assets is chiefly attributable to a rise (of €738 million) in residents' holdings of foreign bonds and Treasury bills. A net increase in their liabilities is mainly due to a rise of €2.4 billion in non-residents' holdings of Greek government bonds and Treasury bills.

Under other investment, a net decrease in residents' external assets is attributable to a decline of €2.7 billion in residents’ deposit and repo holdings abroad and the statistical adjustment related to holdings of banknotes. A net decline in external liabilities reflects mainly a drop of €23.7 billion in non-residents' deposit and repo holdings in Greece (the TARGET account included), which was largely offset by a €20.7 billion increase in the outstanding debt of the public and the private sector to non-residents.

At end-October 2018, Greece's reserve assets stood at €6.5 billion, compared with €6.6 billion in October 2017. 

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinations Greek travel marketGreek tourism statisticsGreek tourism report


  1. 19/07 14:47

    5.1 R tremor felt in Greek capital of Athens with no major damages reported

  2. 19/07 14:24

    Greek banks to begin charging non-customers more for ATM cash withdrawals

  3. 19/07 13:08

    Cyprus to establish full diplomatic relations with North Macedonia

  4. 19/07 11:08

    New Greek Prime Minister meets with chief of Fairfax investment group

  5. 18/07 22:08

    New Minister greenlights Cosco investments in Greek port of Piraeus with hotels and mall

  6. 18/07 21:54

    Heavily-armed police to monitor tourist spots in Athens

  7. 18/07 21:43

    Guide to ouzo from the Greek island of Chios

  8. 18/07 20:41

    New record in container traffic at Greek port of Piraeus

  9. 18/07 20:29

    Film Tourism: Tom Hanks cast as Elvis’ manager Tom Parker in new movie

  10. 18/07 19:58

    4th EU-Arab World Summit to be held in Athens at the end of October

  11. 18/07 19:30

    New parliament president elected in Greece by vast majority

  12. 18/07 18:57

    BoG report: Greek state budget records primary deficit during H1 2019

  13. 18/07 18:52

    New Investments Minister meets with Israeli Ambassador in Greece

  14. 18/07 18:12

    Greek firms promote strategic investment in social responsibility

  15. 18/07 16:50

    Athens to propose Margaritis Schinas as its new EU Commissioner

  16. 18/07 12:10

    Health Tourism: Ministry to sign pacts with medical care partners in Greece

  17. 17/07 22:54

    Greek Orthodox Archbishop Elpidophoros meets with US President

  18. 17/07 22:33

    Greek airports record 5.3% rise in traffic during H1 2019

  19. 17/07 22:08

    US Ambassador to Athens Pyatt: Greece is now a source of solutions

  20. 17/07 21:28

    Kostas Loulis new Secretary-General of Tourism in Greece

  21. 17/07 19:15

    Minoan Theater: A reinvestment in excellence and spirit in Greek

  22. 17/07 16:59

    New Greek Prime Minister says Greek bond sale will attract investors

  23. 17/07 15:35

    Friday the last day of traffic restrictions in downtown Athens this summer

  24. 17/07 12:19

    Tourist arrivals to Cyprus drop in June and during first six months of 2019

  25. 17/07 11:53

    Greece's newly elected parliament sworn in on Wednesday (video)

  26. 17/07 10:43

    Newly appointed Greek Foreign Minister Dendias visits the United States

  27. 16/07 22:51

    Parga: The gem of Epirus and the Ionian Sea in Western Greece

  28. 16/07 22:50

    New York Euripides Summer Festival presenting two classic masterpieces

  29. 16/07 22:47

    Grand Resort Lagonissi opens new Grand Hall conference center in Athens

  30. 16/07 22:30

    Tax authorities: Over 20,000 Airbnb Greek properties still not registered

  31. 16/07 22:21

    Classical music festival returns to Greek islands of Koufonisia for 4th year

  32. 16/07 22:15

    E-real estate network chief: AirBnB effect in Athens focuses on inner city district

  33. 16/07 22:08

    Greek-American TV persona Maria Menounos wins on Celebrity Family Feud

  34. 16/07 21:07

    ANIMART festival on Greek island of Hydra from July 22 until July 31

  35. 16/07 20:47

    Jewish communities in Greece welcome Minister's denunciation of neo-Nazi past

  36. 16/07 20:19

    Study: ‘Athens triangle’ becoming Greek capital’s new place to be

  37. 16/07 19:42

    New exhibition titled “Art: Response to Conflict” opens in Athens

  38. 16/07 18:33

    Moody's upgrades outlook for three systemic Greek banks

  39. 16/07 16:15

    Algean Property Ionian Sea Report 2019: "Everlasting Experience"

  40. 16/07 15:56

    3200 hotel CEOs reveal top hospitality and leisure trends for 2019

  41. 16/07 15:18

    Kimisis tis Theotokou Hamptons Greek Festival a great success (video)

  42. 16/07 14:52

    ESM chief: Reform drive of new Greek government to stimulate investments welcome

  43. 16/07 12:37

    Sheraton’s new logo appears on hotels worldwide for first time in over 40 years

  44. 16/07 12:29

    Minister: Seven-year bond yield records return of Greek economy to normality

  45. 16/07 10:20

    TripAdvisor: Online reviews still a trusted source of information when booking trips

  46. 16/07 00:54

    Canal d'Amour: the famous beach of lovers on the Greek island of Corfu

  47. 16/07 00:27

    Greek Public Debt Management Organisation to launch seven-year bond

  48. 15/07 22:25

    EU announces measures against Turkey's illegal drilling in Cyprus' EEZ

  49. 15/07 22:00

    Greek state budget shows primary surplus of €382 million in January-June

  50. 15/07 21:07

    New Greek government to cut ENFIA property tax 30% within two years

  51. 15/07 21:06

    Legendary yacht of Onassis ‘Christina O’ sails into Greek island of Poros

  52. 15/07 18:02

    New Greek Finance Minister Staikouras meets with ESM Director Regling

  53. 15/07 13:07

    Athens Airport awardsTurkish Airlines for remarkable growth rate in last 5 years

  54. 15/07 11:56

    Culinary Tourism: Greek beer thrives from Antiquity to modern microbrews

  55. 14/07 23:28

    Travel & Leisure: Four Greek islands among Europe's top-5 for 2019

  56. 14/07 19:00

    Sports Tourism: Pakistan's street cricketers bring game to life in Greece

  57. 14/07 14:37

    New Greek Development Minister: Hellinikon project will move "very, very quickly"

  58. 14/07 14:29

    Well-known squat of closed Athens hotel abruptly ended after new government elected

  59. 14/07 13:51

    Initiative to invite new Greek PM to address joint session of U.S. Congress

  60. 13/07 20:18

    Opening of “Cyprus: 45 years of occupation” show in Athens

  61. 13/07 19:45

    French Ambassador: France will continue to help Greece in its economic take-off

  62. 13/07 14:50

    Chalkidiki power and water networks to be fully restored by nightfall in northern Greece

  63. 13/07 14:22

    Foods that protect the human skin from the sun

  64. 13/07 13:59

    Meteo services: Weather in Greece to worsen from Saturday evening

  65. 13/07 13:47

    Shops open in Greece on Sunday for first week of summer sales

  66. 12/07 23:48

    Film festival on Greek island of Syros takes cinema to unlikely locations

  67. 12/07 20:13

    Private sector arrears to the Greek state ease slightly down in March

  68. 12/07 17:57

    Acropolis in Athens gains its first permanent doctor

  69. 12/07 17:20

    "Greek Freak" Giannis Antetokounmpo voted Best Male Athlete in the U.S. (video)

  70. 12/07 16:44

    Greek-Swedish Antique special anniversary reunion concert for one night only

  71. 12/07 16:28

    AP: New Greek government recognizes Guaido, not Maduro, as Venezuela’s president

  72. 12/07 15:54

    Paris Hilton spotted on a yacht in Greek island of Mykonos for second year

  73. 12/07 14:17

    New energy minister in Greece to jump-start delayed Helleniko and Skouries projects

  74. 12/07 13:36

    Surf Art Festival Vol. 6 returning to Athens suburb of Faliro on July 12-14

  75. 12/07 00:41

    Greece loses battle over lower taxes for traditional Tsipouro and Tsikoudia drinks

  76. 11/07 21:40

    Festival by "The Friends of the Greek Islands and the Sea" on Sifnos

  77. 11/07 21:36

    Sky News Australia show marks Greek election by dancing and throwing plates (video)

  78. 11/07 21:09

    Greek island of Kastellorizo: from the Dodecanese at the Athens airport

  79. 11/07 20:54

    Leading IT Chinese firm "DeepBlue Technology" expands in Greek market

  80. 11/07 20:34

    European Commission to assist Greece following severe storm

  81. 11/07 20:30

    Production value up 9% in accommodation and food service activities in Cyprus

  82. 11/07 20:24

    AP: Mobile phone link now working on both sides of split island of Cyprus

  83. 11/07 19:59

    Watercolors of the Acropolis: Emile Gillieron in Athens show at the Met

  84. 11/07 19:52

    AirHelp: Thousands of passengers who flew to Greece in 2018 can claim compensation

  85. 11/07 19:46

    New Greek PM Mitsotakis first priority: Hellenikon reboot already underway

  86. 11/07 19:33

    New Minister to strengthen relations between Greece and Greek Diaspora

  87. 11/07 19:28

    210,000-year-old human skull found in Greece is the oldest fossil outside Africa

  88. 11/07 19:20

    Six foreigners and one Greek die in rare severe storm in Chalkidiki

  89. 11/07 18:01

    Athens Stock Exchange: Majority of securities continued upward course

  90. 11/07 17:41

    High-voltage Moudania-Kassandria network in Chalkidiki restored after storm

  91. 11/07 17:36

    Greek government: Immediate action to restore damage from storm

  92. 11/07 17:06

    Greek city of Volos hosts Summer Beer Festival

  93. 11/07 14:41

    Growth projected to recover in Greece during the second half of the year

  94. 11/07 13:04

    Civil Protection warned on dangerous weather conditions in northern Greece

  95. 10/07 21:21

    Theresa May congratulates new Greek PM Mitsotakis on election win

  96. 10/07 21:01

    New Citizens’ Protection Minister promises security for all in Greece

  97. 10/07 20:05

    Funding for Feature Films by South Eastern European Cinema Network in Cyprus

  98. 10/07 19:48

    New Greek Prime Minister begins work on 12 key priorities

  99. 10/07 17:13

    Νew Starbucks outlet at Syntagma Square in the heart of Athens

  100. 10/07 17:12

    Lifestyle mobile app launches on Greek island of Paros