Q1 2014 Greek Hospitality Industry Performance
The impact of the Greek crisis on the Athens tourism industry in the period 2010 to 2013 has been significant (full analysis here). GBR Consulting has estimated that the total loss in that period amounts to € 2.5 billion for the sector as a whole, of which € 820 million was for the Athens hotels. However, Athens tourism has been recovering since May 2013, as the negative headlines on Greece disappeared and a positive outlook started emerging.
With the leisure market solidifying, there are clear signs that the conference and incentive market is returning to Athens. Data from the Bank of Greece showed that the recovery of business tourism in Greece has commenced in 2013, with receipts of business travellers reaching €634.4 million, up 8.9% compared to 2012, while the local Association of PCOs forecasts a sharp increase (+30%) in conferences. Business expenditure is, however, still at very low levels compared to the levels of between €900 and 980 million in the pre-crisis years.
The resort hotels that were operating though this first quarter showed strong improvements in RevPAR compared to the same quarter last year. In Thessaloniki occupancy improved in Q1 2014, while room rates showed a minor drop.
Internationally, the Cairo hotel sector continues to suffer. Some tour operators mentioned that Greece and also Spain's Canary Islands were benefiting from the uncertain situation in Egypt.