Who wouldn’t want to win their first lottery ticket? And yet, all the studies show that most lottery winners become unhappier, not happier, than they used to be. Something similar happens with countries: oil and/or gas fields have made some Russians and Nigerians (much) richer, but in general, Russia and Nigeria have done more harm than good. There are exceptions (for example, Norway), but they are exceptions.

Economists use the term “resource curse” to describe this phenomenon. The discovery of a new field, along with its obvious benefits, brings with it changes that change and often distort the economy, society and politics. The exploitation of a new resource diverts capital and labor from other activities, causing them to wither. The business elites that control it gain disproportionate power, influencing public policy in their favor. Favorable tax treatment distorts the economy, increasing the disadvantage of other industries. Protecting the profitability of a resource at all costs is a self-evident orthodoxy that overshadows, for example, the protection of the environment. Easy enrichment encourages complacency by postponing adaptation to changing circumstances. Infrastructure upgrades and skills development are ignored, jeopardizing the future prosperity of the country. And so on.

The reader already understands where the author of this article is going. Our “first choice” is tourism: that beautiful piece of land that we have inherited without doing (so to speak) anything to deserve it. In 2019, tourism in Greece provided more than 20% of GDP and more than 25% of employment, which is much more than in Portugal, Spain or Italy (data from the World Travel and Tourism Council). This is a blessing. But there is also a curse. Tourism is a fragile business: heatwaves will send tourists to the Algarve, global warming could send them to the Hebrides. “Market factors” call for low taxes (and low wages) in the name of competitiveness, but a ferry ticket from Sifnos to Naxos (one way) costs 95 euros. Reckless development sawing off the branch it sits on: when every inch of the island is covered in cement, Mykonos will be the new Benidorm. Local interests are saying no to wind turbines and yes to swimming pools, accelerating a process that will make this place uninhabitable for their children. And so on.

What can be done? Many, from protecting the natural and living environment of the islands to encouraging mountain tourism. But before that, it should be decided that the current model of tourism development, no matter how (easy) profit it brings to many, has long exhausted its usefulness for the country.

* Mr. Manos Matsanganis is Professor of Public Economics at the Politecnico di Milano and Head of the Greek and European Economic Observatory ELIAMEP.