Greece’s tourism-reliant economy has been significantly impacted by the COVID-19 pandemic. In 2019, tourism accounted for over 20% of Greece’s GDP and one in five jobs. However, the pandemic brought global travel to a standstill, dealing a heavy blow to the country’s primary industry.
Official statistics show Greece’s GDP growth rate plummeted from 6.5% in 2019 to just 0.4% in 2020 as tourism revenues dropped a staggering 78.2% in the first nine months of the year. The 3.5 billion euros earned during this period was less than a quarter of the 16.1 billion euros earned in the same period in 2019. The loss of tourism receipts had ripple effects across other sectors of the economy as well.
In response, the Greek government unveiled economic support measures worth over 24 billion euros to boost public revenues and protect businesses and jobs. Targeted assistance was provided to tourism-linked companies and workers. However, the sector’s recovery is expected to be gradual as international travel restrictions were only recently lifted and many travelers remain wary of pandemic risks.
Greece is aiming to narrow its fiscal deficit to 7.4% of GDP in 2022 according to recent projections, showing signs the economy is rebounding from the 2020 slump. Non-tourism sectors like e-commerce and digital services have also experienced growth during this period, opening new opportunities. But tourism will play a vital role in Greece’s full economic recovery.
With its thousands of islands and beaches, archeological sites, and mild climate, Greece remains an attractive destination once travel confidence returns. The government is promoting domestic tourism and has launched campaigns in key markets like Germany and the UK to revive international visitor numbers. If COVID-19 is successfully controlled globally, Greece is hopeful tourism revenues can regain pre-pandemic levels by 2023. Until then, the industry’s recovery is expected to be slow and uneven.
