Vacations are emptying the pockets of Greeks

Inflation forces citizens to cut back on food and entertainment to save as much as possible. But what to do about it on vacation?

The high cost of living has forced new habits on Greeks even during the summer holidays. And of course, for those who go on holiday, it is not only the limited number of days of stay, but they also severely cut back on food and entertainment to contain their expenses, often choosing to cook at home (in rented accommodation, if it has a minimal “kitchen”) or take away instead of going to a tavern, restaurant or cafe.

If vacations used to be about swimming and going to the tavern every day, now these excesses are a thing of the past. And as industry entrepreneurs say, visits to catering establishments have halved, and customer orders are more modest.

It is significant that, according to a survey conducted by the Research Institute of Consumer Retail Trade, 33% of Greek consumers believe that food and beverage expenses are a significant burden on their holiday budget and for this reason became more prudent in their choices. At the same time, seven out of ten were forced to cancel some expenses on food and entertainment for reasons of economy.

The trend of lower travel costs began last year for foreign visitors to Greece as well, as citizens of many countries also faced the problem of inflation.

Catering establishments do not see a continuous flow of customers or the intensity of traffic of previous years, even from foreign visitors. According to the Bank of Greece, in the period January-May 2024, the arrival of foreign tourists increased by 20.6%. However, the growth was not proportional to their spending (overall, foreigners began to spend 3.6% less in Greece). According to catering representatives, even On popular routes, traffic has decreased compared to other years.

The same “cut-and-dried” pattern can be seen in coffee shops that also serve breakfast, as many Greek and foreign tourists prefer to take something with them rather than sit in a restaurant.

In fact, the increase in VAT from 13% to 24% from July 1 on served non-alcoholic beverages – coffee, drinks – turned customers away from stores, businessmen say. Against the backdrop of galloping inflation in restaurants, pastry shops, cafes, canteens, prices in June rose by 5.1% compared to June last year (due to the rise in prices for raw materials and energy).

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