SETE: Greek Tourism Sees Strong Start in 2025, But Long-Term Challenges Loom
Source: GTP Headlines
Greek Tourism Confederation (SETE) President Yiannis Paraschis.
Greece’s tourism sector has entered 2025 on a strong note, with early data pointing to increased arrivals and revenues, the president of the Greek Tourism Confederation (SETE), Yiannis Paraschis, said on Wednesday.
Speaking at SETE’s 33rd General Assembly in Athens, Paraschis said structural challenges – including regulatory delays, infrastructure gaps, and labor shortages – threaten to stall Greek tourism’s long-term growth.
During his speech, Paraschis highlighted that Greek tourism has now cemented its position on the global map, with 2024 marking a record-breaking reference year: 40.7 million visitors and 21.6 billion euros in total revenues, including cruise tourism.
The outlook for 2025 remains optimistic. Data from SETE’s research arm INSETE and the Bank of Greece show:
– a 5 percent year-on-year increase of airline seat capacity on international flights between March and October,
– a 7 percent rise in international air arrivals as of early June,
– a 4.4 percent increase in travel receipts in Q1, totaling 1.073 billion euros.
“These numbers make us moderately optimistic but cautious,” Paraschis said. “Because behind the growth, we face pressing, complex challenges – many of which will intensify after 2026.”
Among the sector’s top concerns is the continued delay of Greece’s new Special Spatial Framework for Tourism – a regulatory tool seen as vital for legal certainty, sustainable growth, and investor confidence. “This is perhaps the most critical structural issue still unresolved,” he noted.
Policy and infrastructure gaps
Paraschis also flagged unregulated short-term rentals as a growing threat, citing their impact on both the tourism experience and local communities. While acknowledging recent government action, he called for a clear regulatory framework that distinguishes private from professional activity, ensures tax parity, and protects housing and social cohesion.
On the tax front, SETE is advocating for a more stable and equitable policy regime. The climate resilience levy imposed on hotels and the municipal duty charged per overnight stay were cited as examples of “unpredictable” taxation. “We need a participatory tax policy that supports the sector’s competitiveness,” he stressed, adding that SETE is preparing a joint study with INSETE and PwC to document how Greece’s tourism tax burden compares to that of other Mediterranean destinations.
Infrastructure remains another weak spot. Despite robust private investment, public facilities are lagging – particularly in ports, marinas, road networks, and waste and water management. Upgrades to air navigation systems and the development of conference infrastructure in Athens and Thessaloniki are seen as urgent.
Financing and labor shortages
Access to financing continues to be a major hurdle, especially for small and medium-sized enterprises (SMEs). Many mature tourism projects have been left out of previous Development Law rounds and NSRF programs due to limited funding.
“With the new Development Law in place, it’s essential that upcoming incentives actually meet the sector’s needs – especially for SMEs,” said Paraschis.
At the same time, labor market pressures persist. The industry is grappling with a shrinking talent pool and a growing shortage of skilled workers. Combined with the unpredictable effects of climate change – ranging from extreme weather to shifting traveler behavior – these issues demand a more resilient and adaptable tourism model.
Global uncertainty
External risks also loom large. Ongoing geopolitical instability near Europe’s borders, inflation, and shifting global trade dynamics are already shaping travel behavior and investment flows.
“The war in Ukraine, unrest in the Middle East, rising tariffs from the U.S., and even natural disasters like this year’s incident in Santorini are shaping the future of tourism,” said Paraschis. “Growth depends on three unstable factors: income, geopolitical stability, and trust.”
A roadmap to 2030
Looking ahead, SETE is calling for an integrated tourism development plan through 2030. Its strategy is centered on five pillars: competitiveness and investment, infrastructure, destination management, labor force development, and sustainability.
A key component of this forward vision is METRON – a self-regulation initiative launched by SETE to help tourism businesses transition to more sustainable practices.
“Our focus must now shift toward a quality-first model that enhances the visitor experience, strengthens local economies, and protects our environment,” Paraschis concluded.
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