POST-PANDEMIC INVESTMENTS IN THE HOTEL INDUSTRY AND THE PERSPECTIVE OF THE TOURISM SECTOR IN GREECE
The hotel industry in Greece recorded one of its most successful years in 2019. Our country welcomed almost 31 million visitors, and travel turnover amounted to 18.2 billion euros. Against this backdrop, there was strong investment interest from entrepreneurs in the industry, originating from domestic and international investment funds, and from tourism organizations, tour operators and their investment component. This coincided with the release and launch of the Hellinikon Project, a pivotal investment into Greek tourism infrastructure. Moreover, in 2019 the Greek State and the HRDF (Hellenic Republic Asset Development Fund) further promoted the privatization of important regional properties suitable for tourism investment, such as Gournes in Heraklion and Afandou in Rhodes.
In 2020, the excellent prospects of Greek tourism were interrupted by the the COVID-19 outbreak. However, industry insights predict a strong resurgence of investment from 2022 onwards and the continuation of investment projects which were postponed due to the pandemic. The pandemic has therefore provided a second chance to investors who thought they had missed the opportunity to enter the Greek market.
In the new, post-pandemic environment, investment options will have to be adapted in order to meet the new needs and behavioral traits of contemporary travelers and consumers.
The changes to traveler / consumer behavior can be summarized as follows:
With the reopening of Greece’s tourism industry, the investment interest is expected to develop in the following areas:
An important parameter for new investments into the Greek hotel industry is financing from the banking system. As it stands, banks seem willing to finance sustainable investment projects and have sufficient liquidity to support the industry.
We are moving forward to a new era: the post-Covid era. Therefore, the adaptation
of the tourism industry is both necessary and inevitable. Rising to the challenges of the new world, tourism will continue to be a leading sector, one that is essential to the development of the Greek economy, and a considerable investment option for both Greek and foreign investors.
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