Monday, March 16

Greece Faces Tourism Competitiveness Warning as Hotel Prices Hit Highest in Mediterranean Region Greek City Times


Greece has emerged as the most expensive Mediterranean destination for German tourists this season, according to fresh data presented at ITB Berlin 2026, raising fresh concerns about the long-term sustainability of the country’s tourism pricing model.

A survey by the German foundation Stiftung für Zukunftsfragen, unveiled at the world’s leading travel trade fair, shows the average daily expenditure per person in Greece at €147 — surpassing Spain’s €143 and placing Greece at the top of the cost ranking for the German market, its largest source of foreign visitors.

The German Travel Association (DRV) confirmed the trend in its latest report, noting that total travel spending by Germans reached a historic high, with Greece leading in per-trip costs. Major tour operators expressed serious reservations about the sustainability of Greek hoteliers’ pricing demands, warning that continued sharp increases could erode demand.

Hoteliers are reportedly seeking average price rises of 5–8% for the next two years — a rate tour operators describe as disproportionately high relative to eurozone inflation. Greek hotel industry representatives attribute the increases to soaring operating costs (energy, labor, supplies) and Greece’s heavy tax and regulatory burden. According to the Berlin analysis, taxes and fees account for 29.8% of the final room price in Greece — far above Cyprus (16.1%) and Turkey (12%).

Economists, however, point out that strong, relatively inelastic demand from foreign markets has enabled hotels to push prices well beyond cost increases. As long as international visitors (particularly from Germany, the UK, and the US) continue to accept higher rates, many properties are willing to risk pricing domestic Greek travelers out.

The data has sparked debate in Athens: while the record revenues of recent years have been celebrated, industry voices warn that overpricing could damage Greece’s long-term competitiveness if demand softens — especially against more affordable rivals like Turkey, Cyprus, and emerging Balkan destinations.

ITB Berlin 2026 attendees noted that while Greece remains a top choice for sun-and-sea holidays, price sensitivity is rising among cost-conscious Europeans amid economic pressures and competition from value-driven alternatives.

Sources: Stiftung für Zukunftsfragen survey (ITB Berlin 2026)

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Bill Giannopoulos

Junior Editor

Bill Gee is a journalist covering geopolitics, defence and Hellenic diaspora news.



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