Greece’s tourism sector, a major contributor to the national economy, is showing signs of strain as industry leaders warn that the period of uninterrupted growth may be coming to an end.
The Hellenic Hoteliers Federation (POX) has raised concerns that 2026 could mark a turning point for the country’s hospitality industry, following strong performance in 2024 and 2025.
Rising operational costs, infrastructure shortcomings and stronger competition from other Mediterranean destinations are being cited as key risks.
Economic pressures and shifting travel behaviour
Tourism analysts point to global economic conditions as an important factor shaping demand. Reduced consumer spending in major European markets and cautious behaviour from U.S. visitors are already affecting bookings.
Hoteliers report that travellers are waiting longer before committing to trips and are cutting back on overall spending.
This shift in travel patterns could place downward pressure on hotel revenues, even as visitor numbers remain steady.
Infrastructure strain and over-tourism concerns
The popularity of destinations such as Santorini continues to highlight weaknesses in public infrastructure. Underdeveloped ports, congested roads and limited water and waste systems are struggling to cope with demand during peak seasons.
Local communities and visitors alike face the consequences of overcrowding, while environmental risks including wildfires and extreme weather events add further uncertainty.
Industry representatives argue that these issues threaten both the visitor experience and the long-term sustainability of tourism in Greece.
Policy reforms and calls for sustainable strategies
The Hellenic Hoteliers Federation, supported by the Greek Tourism Confederation (SETE), is urging the government to take targeted action. Proposals include stabilising taxation policies, introducing regulation for short-term rentals and investing in key infrastructure projects.
Beyond immediate reforms, industry leaders are calling for a broader shift towards sustainable tourism models.
By promoting cultural, gastronomic and alternative experiences alongside traditional beach holidays, they argue Greece can diversify its offerings and remain competitive in a crowded Mediterranean market.
Without such measures, stakeholders warn that the country’s tourism sector may face slower growth and increasing operational pressures in 2026, a development with significant implications for Greece’s hotel and travel industries.
