Greece is a magnet for the elite

Demand for luxury holidays in our country remains high, but in 2024 Greek tourism risks running out of resources – the necessary number of staff to serve millions of new visitors with high demands.

“I don’t see a decline in the interest of the elite in luxury holidays in Greece in 2024 – 20% of bookings have already been made in the international market,” said the Managing Director of the Sani/Ikos Group, Mr. Andreas Andreadis on the occasion of its educational initiative in collaboration with the educational group Mitropolitiko – AKMI training for hotel business managers.

Without staff there will be no tourism services. The shortage of personnel is a big problem, and finding workers is a difficult issue, especially for our country,” said Mr. Andreadis. As he explained, other countries, such as Spain and Portugal, which also face the problem of labor shortages, thanks to historical contributions and international agreements, have the opportunity attract personnel from Spanish-speaking countries in Central and South America, as well as Portugal and Brazil.

Greece, due to its language and position “on the edge of Europe”, needs a very specific planto fill this gap. As the expert added, The shortage of human resources is observed not only in tourism, but also in other sectors. Mr. Andreadis believes that “the state must immediately pay attention to this issue, otherwise the shortage of human resources will become a “black hole” that will swallow up any development.”

Regarding the demand for tourism services in our country, Mr. Andreadis calculated that The year 2023 will close with a record for both arrivals and revenues, which will exceed 20 billion euros (but not more than 21 billion euros). He described 2023 as a very good year for Greek tourism, adding that luxury tourism will continue to be important in 2024, thanks to the momentum built in previous years.

Other representatives of luxury properties who are already investing in our country agree with this assessment, as can be judged by the emerging new chains (Mandarin Oriental, Six Senses, etc.).

Following a successful 2023 for the group, the luxury hotel booking trend will remain strong in 2024, according to Mr Andredis. The Sani/Ikos Group has already covered 20% of its bookings internationally for 2024, with prices rising by 8-10% .

It should be noted that prices have increased again this year, by an average of 10%, while the rate of increase in hotel operating costs has been similar.

Referring to the financial results of Greek hotels for 2023, he estimated that most of them will be higher compared to previous years.

The factor that ultimately determines the financial results of a tourism business, he explained, is not prices per se, but the discounts that hoteliers provide to maintain high occupancy levels at their hotels. He noted that next year, in general, fewer discounts are provided compared to other years for years. In particular, discounts in the Sani/Ikos group in 2023 were below 7%, compared to approximately 13% in previous years, with a target occupancy of 95%.

Regarding the group’s next investment steps, Mr Andreadis said two more new projects are being considered, one in Greece and one abroad. Details are expected to be announced soon. At the same time, new investments have already been announced in Crete (Kissamos) and Portugal (Algarve), which are planned to be commissioned in 2025 and 2027 respectively.

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