Exploring the Dynamics of Tourist Spending in Greece (2010-2019)
Decreased Duration of Stay: A Notable Trend
The trend of shorter stays among foreign visitors to Greece, coupled with a shift in the demographics of tourists—particularly a rise in visitors from the Balkans—are the primary reasons behind the decrease in average per capita spending by foreign tourists in the country from 2010 to 2019. According to a recent study published by the Institute of the Hellenic Tourism Enterprises Association (INSETE), the average spending per head for tourists has seen a significant decline.
Understanding the Metrics of Average Spending
The analysis conducted by INSETE evaluated the average per capita spending (APS), average duration of stay, and average expenditure per night for incoming tourists during the decade. Remarkably, the average per capita spending decreased by €76.4, equating to a notable 11.9% reduction over this period.
Despite this downturn, there was a noticeable 10.6% increase in average spending per night, which rose by €7.5. The report emphasizes that this increase occurred against the backdrop of a changing market mix, with more tourists coming from lower-income countries, and an overall doubling of incoming tourist numbers from 15 million in 2010 to 31.3 million in 2019.
A Shift in Travel Behavior
One of the central findings indicates that the drop in average per capita spending is primarily attributed to a decline in the average duration of stay, which fell by 1.9 nights (20.6%). This trend of shorter trips is becoming increasingly common on a global scale, owing to the growing preference for brief travel experiences.
For instance, in 2010, tourists were staying in Greece for an average of 9.3 days, a figure that decreased to 7.4 days by 2019. The rise of Athens as a city break destination, particularly post-2014, substantially contributed to this reduction in average stay duration.
Changing Tourist Demographics
In addition to shorter stays, the changing demographics of incoming tourists also play a significant role in the drop of average per capita spending. There has been a notable decrease in traditional markets, with an increase in new markets from the Balkans and Eastern Europe. This includes countries such as Bulgaria, North Macedonia, Romania, Serbia, and Albania.
It’s crucial to highlight that this shift in market shares does not signify a substitution of high-spending traditional markets with lower-spending ones. Rather, it reflects a robust growth in new markets, which increased by 174.9% from 2010 to 2019, outpacing the growth of traditional markets, which saw an 88.1% rise in the same period.
Support from Emerging Markets
Traditional markets that have historically contributed to Greece’s tourism include Germany, the United Kingdom, France, Italy, and the Netherlands. INSETE underscores that the growth of new markets has played a pivotal role in supporting the tourism sector, particularly in Northern Greece.
Is Greece Truly A Budget Destination?
In a separate study, INSETE explored the common assertion that Greece is a low-cost destination, particularly in comparison to countries like Spain, which is a global tourism powerhouse and one of Greece’s main competitors. The results shed light on the dynamics of average per capita spending between these two nations.
Key Findings from the Comparative Study
The research yielded two major conclusions:
Contrary to popular belief, Greece is not a cheap destination relative to its major European competitors. In most cases, tourists in Greece spend more than in Spain, while visitors from the U.S. and Russia tend to spend more in Spain.
- The disparity in average spending between Greece and Spain primarily stems from their different market compositions regarding tourist origins. The influx of tourists from neighboring Balkan countries constitutes about one-third of incoming tourism and is absorbed primarily by the tourism product in Northern Greece, an area where hotel infrastructure is comparatively less sophisticated than in other regions.
Comparing Average Spending: Greece vs. Spain
The study highlights that direct comparison of average per capita spending between Greece (€564) and Spain (€1,102) in 2019 is problematic due to methodological differences in data collection. In Greece, only the portion of spending that remains in the country is counted—excluding costs for air or ferry tickets, even from Greek carriers.
Additionally, Greece’s statistics include visitors without overnight stays and workers crossing the borders. In contrast, Spain accounts for total tourist expenditures without regard to the country of receipt and focuses only on tourists with at least one overnight stay.
Adjusting for a Fair Comparison
When adjusting the data to only reflect spending that occurs within each country, excluding travel costs, the difference narrows significantly. By 2018, the gap in average spending between Greece and Spain was just €54, and it shrank further to €9 in 2019. A substantial part of this difference indicates that the two countries experience diverse origins of tourists, with Greece attracting a considerable number from adjacent Balkan countries.
Average Spending Analysis: A Comprehensive Look
The analysis then turns towards overall average spending, recognising expenditures beyond just what remains in the destination country, which includes payments made outside the tourist destination for services like plane tickets and intermediary commissions.
Among eight European countries analyzed, seven exhibited higher average spending by visitors in Greece compared to Spain in 2019, while just the Netherlands was an exception.
Visitor Spending Insights from the U.S. and Russia
Interestingly, visitors from the U.S. and Russia tend to spend higher amounts when visiting Spain as opposed to Greece. For instance, U.S. tourists spent an average of €1,743, while Russian tourists spent approximately €1,516, compared to €1,686 and €1,058 in Greece, respectively, although these differences have been observed to decrease over recent years.
Seeking Opportunities for Improvement
This disparity indicates a significant opportunity for Greece to enhance its tourism offerings, aiming to increase spending from these profitable markets.
Overall Average Expenditure: A Yearly Perspective
Finally, regarding the total average expenditure for incoming tourism, Greece recorded €864 in 2019, while Spain reached €1,102, showcasing a considerable gap that Greece must address.
Conclusion
In summary, the factors contributing to the reduced average per capita spending by foreign tourists in Greece span a combination of shortened visitations and evolving tourist demographics, especially with a growing presence from lower-income nations. While the narrative of Greece’s affordability in comparison to other European destinations remains complex, opportunities exist for growth and enhancement within the sector. Addressing these challenges can potentially foster a more sustainable and profitable tourism industry in Greece and enhance its competitiveness on a global scale.
