ICAP: The hotel industry is particularly important for the development of the national economy

The hotel industry is considered to be particularly important for the development of the national economy and is undoubtedly the “pillar” of Greek tourism, as highlighted in an ICAP study.

Specifically, the latest changes and development prospects of this sector are presented in the sector study “HOTEL ENTERPRISES” recently prepared by the Directorate of Financial-Sector Studies of ICAP CRIF SA.

Foreign tourists are the main “customer” for the hotel businesses of our country, as over 80% of the total nights in the various hotel accommodation are made by foreigners. After about 109 million overnight stays in all hotel accommodation in the country in 2019, the pandemic of Covid-19 resulted in 2020 the total number of nights to reach only 30 million, a decline of more than 70% compared to the previous year.

Respectively, the average annual occupancy of all hotels in the country from 48.7% in 2019 decreased to 29.6% in 2020.

From 2004 onwards, the hotel infrastructure of our country was significantly upgraded, as a large number of hotel units throughout the territory were renovated, while new units of high level of service started their operation.

Regarding the number of hotel accommodations that operate in our country, in the year 2020 were recorded a total of 10,052 hotel units with approximately 870 thousand beds. Two-star hotels represent the largest percentage of the total hotel potential (approximately 36%). The region of the South Aegean has the largest number of beds (share of about 26%).

Stamatina Panteleiou, Director of Economic Sector Studies of ICAP CRIF points out that the question now for the hotel business sector is when the rebound will be achieved, achieving again the revenues of 2019, the best year for the industry.