C&W Hospitality Market Beat – Greece Q1 2023
Whereas the Greek hospitality trade is dealing with employees shortages and rising operational prices, the sector continues to point out exceptional restoration after the pandemic. In keeping with the Financial institution of Greece, the tourism sector in Greece skilled a surge in exercise throughout Q1 2023, with worldwide customer arrivals hovering by a powerful 74.7% in comparison with the identical interval in 2022. the turnover of hospitality enterprises grew by 28.6% in Q1 2023 (year-on-year), to succeed in €375 million, with Thessaloniki-based enterprises recording the best improve at 70.9%. Equally, restaurant companies reported a 27% improve in turnover, totalling €1.5 billion throughout the identical interval.
By way of lodge efficiency, the occupancy ranges of upper-upscale properties in central Athens and Thessaloniki skilled a big improve of 94% and 15%, respectively. Moreover, the Common Each day Charge (ADR) for these properties noticed an increase of 24% in Athens and 12% in Thessaloniki throughout the identical interval. This upward development in each occupancy and ADR, in comparison with the earlier 12 months’s efficiency, highlights the rising attractiveness and competitiveness of Athens as a tourism vacation spot.
The strong restoration of tourism and lodge efficiency in Greece is paralleled by a big surge in improvement exercise. Throughout Q1 2023, there have been greater than 170 lodge improvement initiatives receiving approval throughout the nation, with building set to begin within the close to future. Within the Attica area, at the least six entities obtained improvement approval, whereas Thessaloniki acquired roughly 9 approvals. This demonstrates the rising curiosity and funding within the Greek hospitality sector, as stakeholders acknowledge the potential for continued development and alternatives out there.
Wanting forward, whereas there are ongoing geopolitical tensions and the approaching election cycle in Greece, the hospitality trade is anticipated to take care of its development trajectory. With the inflow of higher-spending guests and elevated visitors, there may be potential for the trade to succeed in the €20 billion milestone for the primary time. Whereas challenges persist, the optimistic efficiency and development in Athens’ hospitality market exemplify its resilience and talent to thrive.
Nicky Simbouras
Managing Director at Cushman & Wakefield Proprius
Cushman & Wakefield
