Performance Greek Hospitality Industry Performance Q1 2024
During Q1 2024/23 international arrivals of non-residents at the Athens airport increased 20%, while the international arrivals at the airport of Thessaloniki increased 13%. Traffic registered growth across all months of the quarter.
In Athens, the rise in airport arrivals boosted occupancy rates by 5.9% in Q1 2024/23, accompanied by a 3.9% increase in room prices. Consequently, RevPAR improved by 10%.
In this quarter the hotel associations of Attica – Athens and Thessaloniki presented their Guest Satisfaction and Hotel Performance reports in cooperation with GBR.
Hotel guests in Athens remain very satisfied on their experience in the city with a stable mark of 8.4 out of 10, while in Thessaloniki satisfaction declined to 7.8 out of 10, marking its lowest level since 2015.
The hotel facilities in both cities are highly appreciated. Value for Money recorded a decline in Athens from 8.6 in 2022 to 8.4 in 2023, likely impacted by the 12.8% increase in ADR during 2023/22. In Thessaloniki, room prices increased by 9.1% 2023/22 but maintained a stable Value for Money rating of 8.3 out of 10.
In 2023, Athens achieved a record tourism year, welcoming 7.1 million international non-resident arrivals and leaving tourists satisfied. Hotels are being upgraded, new concepts are introduced, local and national chains are expanding and international investors are attracted bringing often international hotel brands to the market. In that respect CBRE Research launched in April 2024 a report, the 2024 European Hotel Investor Intensions Survey, indicating that Athens has entered the top 10 of preferred city destinations as an increasingly appealing market for investors. This positions Athens as an emerging opportunity among key tourism cities, offering investors an alternative avenue for potential portfolio growth and diversification. The research reveals that investor sentiment continues to favour London as the most attractive city for hotel investments. More surprising is that Madrid is now in second place with the city’s hotel dynamics proving increasingly attractive to global capital. Rome is ranked 4th and Barcelona 6th . It's evident that Athens has emerged as a popular and appealing destination, with significant potential for further growth, especially considering that it has yet to reach the visitor numbers seen in cities like Rome and Barcelona. However, to avoid facing challenges similar to those experienced in Barcelona, where residents are increasingly voicing concerns about the negative impacts of tourism on the city, Athens must prioritize sustainable growth through planning and management. This entails strategies such as redistributing tourist traffic to lesser-known attractions and areas, alongside stricter regulations within the accommodation sector. Greek Tourism Minister Olga Kefalogianni has already placed the regulation of the Short-Term Rental sector on the agenda, aiming to introduce operational standards. Additionally, ongoing investments in infrastructure, safety, cleanliness, and green spaces are essential for enhancing the experience for both citizens and tourists.
