The tourism product of Greece today has a positive sign, but it is not able to respond to the challenges generated by the new development trends in the sector.

The tourism report in 2022 was positive at the national level. Based on data at the end of the 3rd quarter, a constantly improving situation is reflected. Despite a decrease in the number of visits compared to 2019 (11.1%), the average cost per trip is increasing (9.8%), while overall travel revenues are slightly declining. Sector representatives estimate that the year will have a generally positive sign, while international house estimates of the growth rate of the Greek economy are moving in the same direction, based on the expected effect of a positive tourism exchange rate.

However, the quantitative data partially reflect the state of the industry, since the overall assessment should take into account the especially positive features and problems of the period.

• The accumulated savings and the strong desire of people to travel as a result of the pandemic should be assessed for the assessment for 2022, as well as for planning for the next years.
• The jump in almost all costs in the sector, although it did not affect demand in 2022, should be assessed for the future positioning of the product supply.

From the latest positions of the representatives of the sector, it is clear that they are not. Satisfaction with the 2022 report is accompanied by reflections on the war in Ukraine and its implications for the global supply chain and production costs. While the external tourism market environment is characterized as unstable, internally, the State Administration is activating financial instruments (Recovery Fund and NSRP) to support the sector, and the Ministry of Tourism is taking initiatives to strengthen the country’s tourism infrastructure in a coordinated manner based on the INSET study.

Accordingly, proposals for a more radical restructuring of the management of the proposed product are being fixed. The proposal to create from scratch a modern, strong, technocratically structured and business-oriented ministry that will replace the current small, “old-fashioned” and low-budget ministry, deserves further analysis and evaluation. In any case, it seems that the state apparatus is easier to implement reforms that are implemented in parallel with existing structures (such as gov.gr or formerly the CEP), rather than radical reforms from scratch.

In this context, the Law 4875/2021 on the promotion of tourism can become the basis for a parallel reform of the national tourism product. In particular, the law provides for the following:

• Enabling Targeted Management and Marketing Organizations (DMMOs)
• Activation of the National Observatory for Sustainable Tourism Development
• Development of specific tourism strategies for individual destinations
• Building public-private partnerships for additional investment

When implementing the above, coordinated monitoring of tourism trends and destinations is carried out, rational targeting of the sector, taking into account the quantitative and qualitative characteristics of supply and demand, as well as differentiation of the existing financial base from subsidies to businesses. risk support models are targeted.

It is expected that the activation of DMMO and the implementation of the above activities will strengthen the tourism product, the efficiency and effectiveness of the sector and possibly lay the foundation for innovative reforms in the future.

Alexandros Chloros, Public Sector Director, PwC Greece