Market Update: We break down the business implications, market impact, and expert insights related to Market Update: Triple trouble for tourism SMEs – Full Analysis.
Small tourism businesses in Greece are called upon to operate in a particularly stressful economic environment, characterized by the triple challenge of high taxation, increased operating costs and staff shortages, a survey has shown.
According to the findings of the latest “Business Climate Survey in Tourism Accommodation,” the room rental sector is sending out a distress signal for its sustainability. The survey was conducted by the Institute of the Greek Tourism Confederation in collaboration with hospitality business association, with the participation of 702 small and medium-sized enterprises (SMEs) from across the country.
The findings highlight the dominance of very small units, as 64% of businesses employ only 1 to 2 employees, 31% employ three to five people, while only 4% have a staff of more than six staff.
Taxation emerges as the major obstacle, as 75% of businesses state that they are under pressure, rising to 87% for the North Aegean and 85% for the Dodecanese; while on Crete, along with the Peloponnese, Eastern Macedonia, Thrace and the Ionian Islands, the figure is 77-78%.
At the same time, increased operating costs are a critical factor for 72% of the sector at the national level; with Thessaly and the Cyclades recording 90%; followed by Crete with 86%; the Dodecanese with 85%; and the Peloponnese with 83%.
The lack of personnel completes the list of difficulties for 52% of businesses, with the intensity of the phenomenon peaking in Central Macedonia, reaching 94%; while high performances are recorded in the Cyclades with 70%; and Central Greece with 56%.
Despite the pressures, the sector is a strong lure for visitors, as 65% of accommodations serve mainly foreign travelers; and 27% maintain a mixed orientation, with the Greek market constituting the main source of income for only 8% of businesses.
The main markets of origin are Germany with 43%, the UK with 40% and Italy with 38%, followed by Romania with 31%, France with 23% and Bulgaria with Serbia with 22% each. Especially in northern Greece, the Balkan markets dominate, with Romania reaching 88% and Bulgaria 85% in Eastern Macedonia and Thrace.