Bank of Greece: Tourism revenues are falling – bad news for the Greek economy

Image created by AI

According to the Bank of Greece, Tourism revenues fell in July 2024 compared to July 2023. In figures, this is expressed in a decrease in revenues by 177 million euros.

In particular, they amounted to 4.031 billion euros, compared to 4.208 billion euros a year earlier. This is due to the fact that, compared to July 2023, the number of arrivals of non-resident travelers increased by 4.1%, while the corresponding receipts decreased by 4.2%. In this regard, The trend of overall revenue growth in the first seven months of the year has stalled.

For this period of 2024, revenues amounted to €10.952 billion, compared to €10.375 billion in 2023, or €577 million more. Compared to the period January-July 2023 The number of non-resident tourist arrivals increased by 11.2%, and the corresponding receipts by 5.6%.

For the Greek economy, the bad news is not limited to tourism. The data show that the current account deficit widened between January and July 2024 compared to the same period in 2023. due to the deterioration of the balance of goods and, to a lesser extent, the balance of primary incomewhich was partly offset by an improvement in the balance of secondary income and the balance of services.

In July 2024, the current account surplus decreased by EUR 600.4 million compared to the same month in 2023 and amounted to EUR 246.2 million. The goods deficit increased due to a larger increase in imports compared to exports. At current prices Exports of goods increased by 8.3% (5.9% at constant prices), and imports of goods increased by 8.4% (10.6% at constant prices).

In particular, in current prices, the export of goods excluding fuel increased by 7.5% (4.8% in constant prices), and the import of goods excluding fuel increased by 13.6% (13.2% in constant prices).

The surplus in the balance of services declined due to a deterioration in the balance of tourism services first and the balance of transport services second, while the balance of other services improved.

Compared with July 2023, non-resident traveller arrivals increased by 4.1%, while corresponding receipts decreased by 4.2%.

The deficit in the primary income balance widened compared to the same month in 2023, reflecting higher net payments of interest, dividends, and profit, partly offset by higher net receipts of other primary income. The deficit in secondary income narrowed slightly compared to July 2023, reflecting lower net payments in all sectors of the economy.

In January-July 2024 the current account deficit widened by €1.3 billion compared to the same period in 2023 and amounted to 8.6 billion euros. The goods deficit increased due to the simultaneous reduction in exports and increase in imports.

At current prices, exports of goods decreased by 1.3% (4.3% at constant prices), while imports of goods increased by 4.1% (4.8% at constant prices).

In particular, at current prices, the export of goods excluding fuel decreased by 2.7%while the corresponding imports increased by 5.4% (5.6% and 5.7% at constant prices, respectively). The positive balance of services increased, mainly due to an improvement in the balance of travel services and, secondarily, the balance of transport and other services. Compared with the period January-July 2023, the number of non-resident traveller arrivals increased by 11.2%, and the corresponding receipts by 5.6%.

A sharp fall income from tourism in Mykonos and Santorini – tourist income from accommodation and meals decreased by 7.8% and 6.7% in July 2024 compared to July 2023respectively, according to official data ELSTAT. In particular, on “Island of the Winds” a drop to 95.7 million euros was recordedwhile on Santorini, revenues fell to 68.6 million euros.

At the previously mega-popular Syros, revenues also fell by 12.2% to 1.6 million euros.

Source link