One of the sectors that has been transformed more than perhaps any other in recent decades is tourism. This is clearly evident in the numbers of foreign visitors, the changing behavior of Greeks, and the qualitative features of tourism infrastructure. Images of the “good old Greek summer,” that “time when dreams are made,” as Elytis wrote, now seem faint and distant. That era of long vacations, initially on some island or mainland destination and then at ancestral homes in the countryside, is gone for good.

Even this nostalgic memory, however, reflects subjective experiences that weren’t available to everyone even back then – but certainly to many more people than today, where for a large part of society, a short stay in their hometown (for those who still have one outside urban centers) is now the only available escape. Of course, it’s also the patina of time that makes everything from the past seem more charming, smoothing out the rough edges and difficulties of earlier times, while casting light on the hardships of today’s reality.

In any case, we’re now talking about a completely different tourism model, with clearly different goals and much higher-level services, aimed at those with the income to afford the high costs. It is, without doubt, a new era, where the old formula of “sun and sea” is no longer enough, now complemented by various comforts, such as infinity pools that have become a must-have in most modern accommodations. In the not-so-distant past, things were much simpler…

The Starting Point

To trace the modern beginnings of Greek tourism—since the phenomenon existed even in antiquity—we must travel back in time to the end of World War I. The unparalleled natural beauty of Greece, combined with the allure of ancient monuments that turned the country into a “living museum,” attracted affluent and adventurous travelers from early on. After all, the first hotel in Athens, the “Hotel d’Europe,” dates back to 1832—and it remained the only one until the construction of the “Aeolos” in Plaka, built between 1835–1837 by architect Stamatios Kleanthis.

Following this phase of primarily educational and exploratory tourism, by the late 19th century, even the then-small capital began to see a strong wave of travelers, highlighting the lack of basic infrastructure. During this time, in 1874, Athens saw the opening of its most iconic hotel, the “Grande Bretagne,” which raised the bar and set new standards.

At the same time, from the late 19th to the early 20th century, spa towns began to develop, such as Loutraki and Methana with their hotels—like the “Pallas” and the “Grand Hotel Zacharatou,” which stood out. Even earlier, Edipsos had been “discovered,” with the “Heraklion” hotel, one of the first in the area, established in 1901 (along with others like “Stadion,” “Aigli,” “Ai Pigai,” “Avra,” “Akti,” “Istiaia,” etc.). Its huge dining room with round tables dressed in linen tablecloths, impressive chandeliers, marble staircase with wooden railings, intricate ironwork, and luxurious rooms remained forever etched in the memories of its guests. Edipsos was at that time a cosmopolitan destination, hosting everyone from industrialists and shipowners to politicians like Eleftherios Venizelos, artists such as Marika Kotopouli, and intellectuals—including Kostis Palamas, a regular at the “Heraklion,” who used to write in the garden’s gazebo.

The GNTO and the First Steps

As Greece was increasingly attracting more foreigners, in 1919 the Bureau of Foreign Affairs and Exhibitions was established, with responsibilities including the supervision of hotels and transportation, the condition and appearance of cities, as well as the promotion of the country abroad. A decade later, in 1929, by decision of then-Prime Minister Eleftherios Venizelos, the Bureau of Foreign Affairs and Exhibitions evolved into the Greek National Tourism Organization (GNTO), which became the main arm for attracting foreign tourists.

With this aim, during the very same period, the creation of the famous GNTO posters began, with the first bearing the signature of the renowned photographer Nelly’s, showcasing ancient Greek culture. Shortly afterward, even short films were produced for screening as newsreels in foreign cinemas.

This significant effort bore fruit, and it is characteristic that in 1937, 160,000 tourists came to Greece—a number unprecedented for that time. This “spring,” however, did not last long, as under the dictatorship of Metaxas, the GNTO was abolished, followed by the major ordeal of war and occupation.

After Liberation and the Marshall Plan

With liberation and through the Marshall Plan, new infrastructures were created and Athens, Rhodes, and Corfu were launched as tourist destinations. In 1950, with the re-establishment of the GNTO, an organized effort began on the one hand to promote the country, and on the other to build modern hotels by the public sector, while also mobilizing private investments.

In this framework, more and more GNTO posters were released—with the participation of prominent artists—which now represent a unique historical record of the evolution of Greek tourism.

The 1950s: A Changing Image

During the 1950s, the image of the country began to change: In 1954, with the inauguration of the Epidaurus Festival, and Mykonos emerging as a “star” destination alongside traditional ones, in 1959, with the opening of the first organized beach (plaz) in Vouliagmeni, and with the Astir Palace in Vouliagmeni beginning its own long history.

In April 1963, another milestone came for domestic tourism with the opening of the Athens Hilton, which attracted the elite of the country’s social, economic, and political life, all kinds of celebrities, and select members of the international jet set.

The “Xenia” Chapter

Among the many initiatives and actions that compose the decisive contribution of the GNTO to the development of Greek tourism, a top position is held by the creation of the “Xenia” hotels. This program began in 1951, with the aim of creating modern and functional hotels throughout Greece.

From a certain point onward, the entire endeavor developed under the supervision of the notable architect Aris Konstantinidis, who built the first Xenia with his own signature in Andros in 1958.

Surrounded by other important architects—Ioannis Triantafyllidis, Kostas Stamatis, Charalambos Sfaelos, Giorgos Nikoletopoulos, Filippos Vokos, P. Vassiliadis, and others—they created a chain of 54 Xenia in as many destinations, from the Saronic Gulf and Macedonia to Thessaly, Epirus, the Aegean and Ionian islands, the Peloponnese, and Crete.

The first four were built in Nafplio, Delphi, Mykonos (in 1953 by P. Vassiliadis, followed by a second in 1962 by A. Konstantinidis), and Kastoria, while the last was the Xenia of Nafpaktos, completed in 1980.

Their main features included excellent integration with the natural landscape, minimalist and pioneering lines, and simplicity of facilities. One could say that most of them were permeated by the austere philosophy of Konstantinidis, offering a room with two beds, without any hint of luxury or other amenities such as swimming pools, etc.

After all, why have a pool when, just a few meters away, the untouched blue of pristine beaches prevailed?

Given that all the Xenia hotels were ideally located at the best spots of the destinations, the concept was for them to serve as a short resting place during exploration of each location and connection with nature.

The fate of the Xenia hotels was… dark and unfair, as since the late 1980s the state proved unable to manage them effectively, tourism market demands changed, and these hotels were gradually abandoned. The last one to close was in Paliouri, Halkidiki, in 1997. Afterwards, some were transferred to private hands through tenders, but most were either demolished or remain in ruins, hiding within their remains a significant chapter of Greek tourism.

The current landscape

In contrast to the past, in recent years Greece has become a magnet for international tourism groups that are making large investments—through the acquisition of existing units or the creation of new ones—to gain a foothold in the country’s popular or emerging destinations. Major Greek groups in the sector are also moving in the same direction.

As a result, Athens is now filled with boutique hotels of foreign chains, while in selected island and mainland areas, five-star hotels are sprouting like mushrooms. The high investment in ultra-luxury complexes is matched by prices that are continually increasing. As a result, Greece is no longer considered a “cheap” destination—not only for domestic tourists, but also for inbound tourism—risking the loss of a key competitive advantage.

How Greece became a destination

The development of tourism in Greece somewhat follows the general European trend, but with some caveats. In Europe, after World War II, a new period of growth began, as tourism ceased to be a privilege of the wealthy and started to address broader social groups, aided by the increase in transportation means that made travel easier. Greece entered this new phase with some delay, as until 1949 it was additionally mired in the Civil War.

Although as early as the 1920s—and more so in the 1930s—the Greek state, through the EOT (Greek National Tourism Organization), acknowledged tourism as an economic activity, there were still no organized infrastructures or specialized personnel to support it. It is notable that in 1950, only 33,300 foreign tourists visited Greece—at that time, Athens and its unique archaeological and cultural monuments were the primary attraction.

The scene changed in the early 1960s. According to a study by Professor Stella Kostopoulou from Aristotle University of Thessaloniki and data from SETE (Association of Greek Tourism Enterprises), in 1960 a significant increase in arrivals was recorded, reaching approximately 399,400. The growth of the sector was driven, among other factors, by rising household incomes, the entry of women into the workforce, and the institutionalization of vacation time.

Thus, by 1970, arrivals had exceeded 1.6 million (a 302.87% increase from 1960), with foreigners drawn to the islands and coastal regions. In 1980, arrivals reached 5.2 million (+227.56% from 1970), followed by a period of stagnation. Tourism began to strengthen again after 1984. By 1990, arrivals had increased to 8.87 million, though revenues remained below €3 billion.

The geopolitically heated period (collapse of Eastern European regimes, Gulf War) also affected Greek tourism, with arrivals dropping to 8.3 million in 1991. Generally, from 1967 to the early 1990s, the model of mass tourism emerged, accompanied by the gradual creation of large hotel units and smaller accommodations. Eventually, this model ran into difficulties, leading to the need for a new tourism strategy at national, regional, and local levels.

A period of recovery followed, and by 1998 arrivals reached 11.1 million, with revenues around €7 billion. In 2000, arrivals exceeded 13 million.

Arrivals and spending trajectory

Over the past 15 years, Greece has become a major international destination. Infrastructure and services have been upgraded thanks to major investments by both domestic and foreign groups. Tourism has rightfully earned its title as a “heavy industry,” due to the continuous increase in arrivals and revenues, becoming a growth pillar.

According to data from INSETE and the Bank of Greece (excluding cruises), in 2010, arrivals were 15 million, and total spending reached €9.61 billion. In 2014, arrivals exceeded 20 million (22.03 million), with spending at €13 billion. In 2018, arrivals broke the 30 million barrier (30.12 million), with spending at €15.65 billion, increasing further in 2019 to 31.35 million arrivals and €17.68 billion in spending.

Then came the COVID-19 pandemic, which froze everything. In 2020, arrivals dropped to just 7.38 million, with spending plummeting to €4.31 billion, essentially returning to the 1980s. In 2021, there was a partial recovery with 14.7 million arrivals and €10.33 billion in spending. In 2022, these rose further to 22.84 million arrivals and €17.26 billion in spending.

Since 2023, there’s been a return to normalcy, with increased performance: 32.73 million arrivals and €19.75 billion in spending. In 2024, a new record was set with 36 million arrivals—up 9.8% from 2023 and 6% from 2019—and €20.6 billion in spending. Cruise revenues rose sharply by 31.2%, reaching €1.1 billion.

Thus, total revenues, including cruises, reached €21.7 billion. According to INSETE, the direct contribution of the tourism sector is estimated at €30.2 billion in 2024, representing 13% of GDP, and if indirect contributions are included, the total exceeds 30% of GDP—highlighting tourism’s leading role in the national economy.

Tourism activity remains primarily export-driven, as 84.4% of revenues come from inbound tourism. In 2024, hotel turnover reached €11.4 billion (vs. €10.6 billion in 2023)—with the largest increase seen in 5- and 4-star hotels—while new investments reached €1 billion. Of the 36 million arrivals in 2024, 14.5 million came from Eurozone countries, 7.3 million from EU countries outside the Eurozone, and 14.15 million from other countries.

As for the average per capita spending (excluding cruises): in 2010, it was €640; it rose to €702 in 2021 and dropped to €573 in 2024.

The evolution

The gradual transformation of Greek tourism is also clearly reflected in the quantitative and qualitative evolution of hotel infrastructure. According to the Hellenic Chamber of Hotels, in 2024, there were 835 five-star hotels operating nationwide, with 109,628 rooms and 229,715 beds—compared to 792 in 2023 and 744 in 2022. Additionally, in 2024, there were 1,898 four-star hotels with 130,705 rooms and 262,648 beds, and 2,973 three-star hotels with 101,060 rooms and 198,963 beds. Including the rest of the one- and two-star hotels, the total number of units in 2024 was 10,104, with 447,363 rooms and 894,854 beds.

Ten years earlier, in 2015, five-star hotels nationwide numbered 412, with 62,756 rooms and 127,594 beds. Four-star units numbered 1,332, with 101,646 rooms and 197,057 beds, and three-star units were 2,424 with 96,234 rooms and 184,915 beds. In total, 9,728 units operated in 2015, with 404,587 rooms and 781,090 beds.

Turning the clock back to the landmark year 2000, Greek hotel infrastructure included 83 luxury hotels (according to the then classification), with 78,816 rooms and 149,782 beds. In the A’ class category, there were 792 hotels with 78,816 rooms and 149,782 beds, while in the B’ class, there were 1,499 units with 76,207 rooms and 145,097 beds. Including the lower categories (C’, D’, and E’ classes), the total number of units was 8,073, with 312,993 rooms and 593,990 beds.

Even further back, in 1990, Greece had just 45 luxury hotels with 10,178 rooms and 20,231 beds. In the A’ class, there were 470 hotels with 50,163 rooms and 94,293 beds; in the B’ class, 1,571 hotels with 64,591 rooms and 122,269 beds. In total, 6,423 hotels operated, with 224,882 rooms and 423,660 beds. Notably, this does not include many small rented rooms, which existed even then and later proliferated in many popular destinations.

Where are the 5-star hotels?

The regional distribution of five-star hotels is also interesting. Unsurprisingly, the South Aegean, Crete, and the Ionian Islands lead in luxury units.

Thus, in 2024, out of the 835 five-star hotels:

311 were in the South Aegean
177 in Crete
85 in the Ionian Islands
69 in Central Macedonia
61 in Attica
37 in the Peloponnese
29 in Thessaly
21 in Epirus
14 in Eastern Macedonia and Thrace
12 in the North Aegean
8 in Western Greece
7 in Central Greece
4 in Western Macedonia

Challenges

The global tourism industry currently faces serious challenges, which naturally affect Greece as well. According to INSETE, the main challenges in 2025 include:

High transport and accommodation costs (58%)
Other economic factors (51%)
Geopolitical risks (31%)
Extreme weather events (28%)

Staff shortages

Low consumer confidence (20%)
Travel requirements like visa procedures (19%)
Visitor congestion in destinations (17%)
Airport congestion, delays, and cancellations (12%)
Ongoing conflicts in the Middle East and Ukraine (10%)

These highlight the uncertainty that geopolitical tensions create for global tourism.

A new era – a new narrative

Many foresee a shift in the tourism model—especially for Mediterranean and Southern European countries—due to climate and economic crises.

Successive heatwaves, which will become more frequent, combined with rising tourism product prices, shrinking incomes of mass-market tourists, and over-tourism phenomena, tend to weaken the traditional high season of July and August, while strengthening the autumn period—which in Greece is now part of the main season.

Spring also shows rising trends, thanks to milder weather and more affordable prices—closer to what the average tourist can afford. In this light, the “map” of mass tourism, which both Greece and its direct competitors rely on, will likely be redrawn.

Thus, there is both a need and an opportunity to seek a “new narrative” for Greek tourism. One that can address bad practices, excesses, and mistakes, while also refocusing on the long-neglected Greek tourist.