Yannis Hatzis | ITB'25: Strong demand but reduced growth due to tensions

Strong demand for European tourism but reduced growth due to geopolitical tensions and economic slowdown. This is the main message of Tour Operators to Hoteliers during ITB 2025 in Berlin, according to the president of the Panhellenic Federation of Hoteliers (POX), Yannis Hatzis.

In a post on social media, in the wake of the impressions from participating in ITB, Mr. Hatzis underlines:

"According to the latest INSETE survey, Greece ranked first among six Mediterranean markets in hotel customer satisfaction for the summer season of 2024. With an overall Guest Satisfaction Index (GRI) of 87%, Greece outperformed key competitors, including Cyprus (86%) and Spain/Italy (85%). This achievement reflects the country’s commitment to hospitality excellence, driven by exceptional service standards, strict cleanliness protocols, and the strategic location of its hotel assets.

€800 million per year for hotel renovations

Greek hotels allocate an average of €800 million per year for renovations and maintenance, along with around €105 million per year dedicated to sustainability initiatives (source: ITEI). These ongoing investments elevate the overall quality of services, ensuring that guests benefit from a better stay experience.

Furthermore, the hospitality sector operates within a challenging macroeconomic landscape characterized by persistent inflationary pressures. Rising costs of key inputs – such as energy, raw materials, and financial expenses – are putting significant pressure on hotel profitability. Despite increasing revenues, ICAP CRIF research reveals that hotel net pre-tax profits fell by 16.3% in 2023, highlighting that price adjustments do not necessarily translate into increased profits.

Furthermore, the escalating tax burden has further accelerated price increases, disproportionately affecting the hotel industry compared to other sectors of the Greek economy. Higher contributions and surcharges impose significant constraints, limiting the ability of businesses to maintain competitive prices despite their ongoing efforts to absorb cost pressures.

Nevertheless, Greece remains a top “Value for Money” destination. The synergy of world-class private infrastructure, superior quality of services, and unparalleled natural and cultural heritage justifies the cost of travel to the country. Visitors receive exceptional value, experiencing a high level of hospitality in a destination that is constantly evolving to meet modern expectations.

Ultimately, the strategic decision of Greek hotels to invest in enhancing quality - even in the midst of economic challenges - demonstrates Greece’s ambition not only to maintain its tourism momentum but to position itself as a global benchmark for excellence. To support this trajectory, policymakers must actively address the evolving needs of the sector.

"Direct pro-growth measures - such as targeted tax relief (e.g., abolition of the TAKK, reduction of VAT) and increased public investment, particularly in infrastructure - are essential to maintain the long-term competitiveness of the sector and strengthen Greece's position as a leading global tourist destination."

RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations, Greek travel market, Greek tourism statistics, Greek tourism report