2. 2 ????????????
East Macedonia & Trace
North Aegean
South Aegean
Crete
Central Macedonia
West Macedonia
Ipiros
Ionian Islands
West Greece
West Greece
Peloponnese
Central Greece
Attica
Thessaly
• 12.2% of total
hotel stock
• 44,368 rooms
• 41 5* hotels
• 90 4* hotels
• 9.5% of total
hotel stock
• 47,519 rooms
• 25 5* hotels
• 101 4* hotels
• 21.5% of total
hotel stock
• 100,220 rooms
• 121 5* hotels
• 353 4* hotels
• 16.0% of total
hotel stock
• 88,062 rooms
• 88 5* hotels
• 236 4* hotels
Prefecture
Hotels
(% of Stock)
5* Hotels 4* Hotels
Rooms
(% of Stock)
5* Rooms 4* Rooms
Average Size in Number of Rooms
All Hotels 5* 4*
East Macedonia & Thrace 383 (3.49) 10 27 10,884 (2.7) 954 1,865 28 95 69
Central Macedonia 1,188 (12.23) 41 90 44,368 (11.0) 6,756 8,076 37 172 90
West Macedonia 125 (1.28) 3 17 2,830 (0.7) 61 398 23 20 23
Ipiros 393 (4.04) 9 75 8,054 (2.0) 711 1,334 20 74 17
Ionian Islands 926 (9.54) 25 101 47,518 (11.7) 4,027 10,237 51 161 102
Thessaly 570 (5.87) 28 106 14,737 (3.7) 1,316 2,878 26 47 27
North Aegean 391 (4.02) 6 32 11,720 (2.9) 784 1,570 30 131 49
West Greece 267 (2.75) 4 37 9,609 (2.4) 1,444 2,014 36 361 54
Central Greece 531 (5.47) 10 37 15,064 (3.8) 666 2,611 28 67 71
Attica 645 (6.64) 30 98 31,295 (7.8) 6,255 7,841 49 214 81
Peloponnese 651 (6.70) 20 105 19,431 (4.8) 2,809 3,747 30 150 37
South Aegean 2,087 (21.50) 121 353 100,220 (24.7) 17,390 34,206 48 156 98
Crete 1,549 (15.95) 88 236 88,062 (21.8) 17,808 24,437 57 202 104
Total 9,706 (100) 395 1,314 403,792 (100) 60,981 101,214 42 159 78
Source: Hellenic Chamber of Hotels, edited by NAI Hellas
16selido 21x29_5.indd 2 04/01/2016 16:08
3. 3Industry Snapshot
The Greek tourism industry had an
exceptional year in 2014 following a strong
2013 with international tourist arrivals
increasing by 21% and travel receipts by
10%. In 2015, as a result of continuous
political instability and imposed capital
controls, it was believed that the
upward trend of Greek tourism would
be interrupted. The industry, however,
proved resilient. According to the Deputy
Minister of Tourism, 2015 is expected to
be a record year with arrivals estimated
at 26mil. tourists and travel receipts
projected at €15.5bil.
The market for hotels remained hot in 2014
and 2015 as a result of the continuous
growth in Greek tourism from 2013. New 5
and 4 star hotels have entered the market
with new international operators establishing
a presence and big players extending their
positions. Marriott International returned
to the Greek market with its Autograph
Collection Hotels brand via the Domes of
Elounda hotel in 2015. Four Seasons Hotels
Resorts is planning to operate a new hotel
in Mykonos; Carlson Rezidor Group will
operate the Radisson Blu Beach Resort
(ex Minos Imperial Luxury Beach Resort
and Spa) in Lasithi, Crete from 2016; and
Intercontinental has agreed to manage the
operations of a new hotel in Santorini.
Grecotel Hotels and Resorts group aims
to increase its position to 35 from 30
hotels and upgrade existing units. In 2015
two of the group’s luxury establishments
in Rethymno, Crete, Caramel Grecotel
Boutique Resort and White Palace
Grecotel Luxury Resort reopened their
doors. Earlier in 2014, Grecotel introduced
the refurbished Pallas Athena Grecotel
Boutique hotel in the centre of Athens
which was added to the international
network of small luxury hotels of the world.
A trend is emerging in Athens with a number of new hotels expected
to open in 2016. Electra Hotels and Resorts leased the ex Ministry of
Education building on Mitropoleos street in Athens’ city centre and has
begun the development of a 5 star hotel totalling 220 rooms. Further down
on Mitropoleos street, the listed building that used to house the renown
Hytiroglou store is set to be converted into a boutique hotel by one of the
major local hotel groups. Mage Hotels and Resorts, leaseholder of the
Fashion House Hotel in Omonia Square is to refurbish it into a 4 star hotel.
Furthermore, a tender for the letting of the Athens Lycabettus that closed
in June is underway. In the northern suburbs, Domotel Hotels and Resorts
opened its new 5 star Domotel Kastri hotel, comprised of 86 rooms, in Nea
Erythraia in October 2015.
The 5 and 4 star hotel market in Greece has and is continuing to attract
increased interest from national and international investors. Investors are
also waiting for how the banks will ultimately begin to treat hotel NPLs. Greek
institutional banks hold a significant portfolio of prime hotels and according
to the Bank of Greece the value of those NPLs at the moment stands at
€2.5bil while an additional €3.0bil. are in 90 days delay. NAI Hellas estimates
that the market value of 5 star hotels in Greece exceeds €10.0bil. while the
market value of 4 star hotels is approximately €6.5bil.
The market values of hotel rooms in Greece are estimated to range between
€35,000 to €65,000 for secondary 4 star hotels while prime 4 star hotel
rooms range between €65,000 and €95,000. Market values of rooms of 5
star hotels are estimated to range from €100,000 to €160,000, depending
on the location of the hotel. For the 5 star luxury category, market values of
rooms are estimated to be far higher than that of the 5 star category, and
range between €200,000 and €400,000.
The steady positive performance of Greek tourism increased turnover and
EBITDA for the industry and has consequently allowed for new investments
and the upgrading of existing stock.
Source: NAI Hellas
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4. 4 Part 1: Recent Trends in Greek Tourism
In 2014 world tourism grew for the fifth consecutive
year since the crisis with 4.3% more tourist
arrivals globally than in 2013. The World Tourism
Organisation expects a 3.0% to 4.0% year on year
increase in 2015. European tourist arrivals, which
are the world’s highest given that Europe is the most
visited region globally, grew by 2.7% reaching over
581mil., with Southern and Mediterranean Europe
leading the growth with a 6.9% increase from 2013.
International tourism receipts increased by 3.7% in
2014 to €937.0bil. globally. Europe holds 40.9%
of the world’s tourist market share of which EU-28
accounts for 33.9%.
Greek tourism had an exceptional year in 2014
following on from a very good 2013 season.
International tourist arrivals increased by 20.7%,
travel receipts grew by 10.2% and non-residents
overnight stay improved by 14.7%. Greek airports
welcomed almost 2.0mil. more visitors in 2014 than
in 2013 and road arrivals increased by 49.0%.
In the first half of 2015 international arrivals increased
by 18.8% compared to H1 2014 mainly as a result
of a 51.3% increase in arrivals from EU member
countries. In particular, arrivals from Germany
increased by 23.5%, by 12.5% from France and by
18.0% from the United Kingdom. Arrivals from Russia
decreased for this period by 60.6%.
In 2014, travel receipts grew by 10.2% compared
to 2013, taking into account receipts from cruises
that increased by 10.0%. In H1 2015 travel receipts
increased by 9.5% to €2.65bil. compared to that of
H1 2014 mainly as a result of an increase in receipts of
EU member states’ citizens. Receipts from business
trips increased in 2014 by 22.4%, yet are still very
low compared to pre-crisis levels. The largest share
of receipts, 84.3%, comes from holiday trips. Source: Bank of Greece, edited by NAI Hellas
16selido 21x29_5.indd 4 04/01/2016 16:08
5. 5Part 1: Recent Trends in Greek Tourism
Non-residents overnight stay in Greece increased in
2014 by 14.7% compared to 2013, totalling 186.9mil.
stays. In H1 2015 overnight stays increased by 6.7%
compared to H1 2014 mainly due to an increase in
the number of stays from citizens of EU member
states. Overnight stays of citizens from outside the
EU fell by 14.0%.
Non-residents’ expenditure per journey decreased
from €604.0 in 2013 to €552.0 in 2014 and by
10.0% in H1 2015 compared to H1 2014. In 2014
the average expenditure per journey in Europe as a
whole stood at €660.0 while that of the Southeast
was €700.0, hence leaving Greece far behind its
region’s average. Expenditure per overnight stay in
2014 fell to €71.6 from €74.0 in 2013 but increased
in H1 2015 by 12.8% from the same period last year.
Average duration of stay decreased to 7.7 days in
2014 from 8.1 days in 2013 and by 10.2% in H1
2015 compared to H1 2014.
Source: Bank of Greece, edited by NAI Hellas
Year
Expenditure per
Journey
Expenditure per
Overnight Stay
Average Duration
per Stay (in days)
2008 730.00 € 76.30 € 9.6
2009 697.30 € 73.50 € 9.5
2010 640.40 € 68.60 € 9.3
2011 639.50 € 69.60 € 9.2
2012 616.20 € 73.30 € 8.4
2013 604.20 € 74.60 € 8.1
2014 551.80 € 71.60 € 7.7
H1 2015 528.30 € 74.00 € 6.8
Source: Bank of Greece, edited by NAI Hellas
Note: H1 2015 expenditure amounts are not necessarily comparable to those of full years.
16selido 21x29_5.indd 5 04/01/2016 16:08
6. 6 Part 2: Seasonality of Greek Tourism
Greek tourism is affected by high seasonality levels. The
Greek tourism seasonal deviation (the average of the
absolute deviations of monthly data points form their mean)
is 6.8, the second highest rate among EU-28 member
states after Croatia, which is 8.9, and much higher than
the EU-28 average of 3.4. Eurostat research reports that
in 2014 82.6% of nights spent annually in accommodation
establishments in Greece were during the months May to
September, while for the same period for Spain nights
spent resulted in 59.6%, 68.2% for Italy and 60.7% for
Portugal. As such, the seasonality of Greek tourism is far
higher than the rest of the EU Mediterranean countries.
The 5 month summer period (May to September) in 2014 realised 80.6% of the year’s total international arrivals, 81.6%
of total overnight stays and 83.4% of total travel receipts, highlighting the dominance of the Greek sun & beach product
against other touristic products.
Seasonality is also reflected, of course, in the operation of the country’s hotels. About 50% of 5, 4 and 3 star hotels in
Greece operate on a seasonal basis and can be characterised as ‘resort’ hotels while the other half operate all year round
and are categorised as ‘city’ hotels. Lower star category hotels that operate seasonally are approximately 10% more than
those of higher categories.
Source: Bank of Greece, edited by NAI Hellas Source: Eurostat, edited by NAI Hellas
Source: Hellenic Statistical Authority, edited by NAI Hellas
Source: Hellenic Chamber of Hotels, edited by NAI Hellas
Source: Bank of Greece, edited by NAI Hellas
Source: Bank of Greece, edited by NAI Hellas
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7. 7Part 3: Competitiveness of Greek Tourism
According to the Travel and Tourism Competitiveness Report 2015 that is published every two years by the World Economic
Forum that measures a destination’s tourism attractiveness, Greece ranked 31st
(out of 141 countries) - marginally better
than 32nd
in 2013 - and 18th
in Southern and Western Europe (out of 37 countries) from 22nd
in 2013. Greece lags behind
its main competitors who managed to improve their position considerably between 2013 and 2015, as they focused on
emerging markets and on business travellers. Spain ranked 1st
from 4th
in 2013 and Italy moved to 8th
place from 26th
in
2013. Greece rates low in price competiveness and business environment but ranks high in the health and hygiene area
(9th
) and tourist service infrastructure (12th
).
Based on tourism receipts, Greece had a global market share of 1.8% in 2014 and 3.8% in Europe. Between 2013 and
2014 Greece’s main competitor countries presented positive results in terms of arrivals and receipts but did not manage
to outperform that of Greece. In 2014, Portugal increased receipts by 12%, whereas Greece reported an 11% increase,
without taking into account income generated from cruises.
The direct and total contribution of Travel and Tourism to Greek GDP in 2014, as measured by the World Travel and Tourism
Council, shows the importance of the sector to the economy, as outlined in the table below. Direct and total contribution
of Greek tourism to GDP is forecasted to grow by 3.6% and 3.7%, respectively, each year until 2025. This means that the
Greek tourism market is expected to experience strong future growth, yet less than that projected for direct competitors
such as Turkey, Cyprus and Malta.
Source: UNWTO, edited by NAI Hellas
Country
World Ranking
TTCI Index
European Ranking
TTCI Index
2015 2013 2015 2013
Spain 1 4 1 4
France 2 7 2 6
Germany 3 2 3 2
Switzerland 6 1 5 1
Italy 8 26 6 18
Portugal 15 20 9 13
Greece 31 32 18 22
Croatia 33 35 19 23
Cyprus 36 29 20 19
Country Enabling Environment Pillars, values (7=best)
Business
Environment
Safety and
Security
Health and
Hygiene
HR and
Labour market
ICT
Readiness*
Spain 4.09 5.97 6.11 4.87 5.26
France 4.52 5.44 6.52 4.96 5.55
Germany 5.32 6.06 6.85 5.18 5.51
Switzerland 5.76 6.32 0.65 5.64 6.03
Italy 3.59 5.68 6.27 5.09 5.7
Portugal 4.54 6.33 6.06 5.18 4.97
Greece 4.04 5.49 6.57 4.75 4.71
Croatia 3.65 6 6.33 4.41 5.03
Cyprus 4.72 6 5.8 5.16 4.63
Source: The Travel & Tourism Competiveness Report 2015, World Economic Forum, edited by NAI Hellas
* ICT Readiness measures the existence of modern hard infrastructure (mobile network coverage and quality of electronic supply) and the capacity of businesses and
individuals to use and provide online services.
Country Travel Tourism Direct Contribution to GDP Travel Tourism Total Contribution to GDP
2014
% share
2015
% growth
2015-2025
% growth pa
2014
% share
2015
% growth
2015-2025
% growth pa
Spain 5.6 3.3 2.3 15.2 4 2.1
France 3.6 3 2.6 8.9 3 2.3
Malta 14.7 4 3.8 28.1 2.7 3.4
Italy 4.1 1.8 2.1 10.1 1.7 1.7
Portugal 6 3.1 2.5 15.7 2.2 1.9
Greece 7 3.6 3.6 17.3 3.2 3.7
Turkey 4.7 2.8 4.6 12 3 4.1
Cyprus 7 5.6 4.1 21.3 5.5 4.2
Source: World Travel Tourism Council, edited by NAI Hellas
Note: The % share amount relating to contribution to GDP may vary to other such estimates stated in the report due to each organisation’s methodology approach.
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8. 8 Part 4: Importance of Greek Tourism
In 2014 the Greek tourism industry’s direct contribution to the country’s GDP totaled €16.6bil. or 9.3% of total GDP, as per
Greek Tourism Confederation estimates. This amount includes income that is sourced from national tourism, air and sea
transportation, estimated at €1.3bil., €1.2bil. and €151.0mil. respectively, as well as €466mil. from cruise tourism spending.
A significant multiplier effect is evident as a result of the tourism industry’s total impact on the overall economy. For every
€1 spent from tourist activity, additional (indirect) economic activity is created. The Foundation for Economic and Industrial
Research calculated this multiplier for tourism to be 2.2, hence every €1 spent creates an additional €1.2, thus adding €2.2
in total to GDP. The contribution of Greek tourism to the economy is thus significant both on a direct and total contribution
basis.
Research conducted by the Centre of Planning and Economic Research resulted in a higher multiplier effect than that
described above, with the multiple calculated to be 2.65. The tourism multiplier is broken down into subsectors of the
economy.
Taking into account all additional economic benefits the tourism industry creates as result of the multiplier effect, it is
estimated that the sector contributes in total between €37bil. and €44bil. or 20%-25% of GDP.
With tourism activity concentrated over several areas of the country, prime tourism locations such as Crete, the islands of
the Southern Aegean and the Ionian Sea, see the industry contribute up to 50% to their GDP.
Contribution to employment in 2014, as per the Greek Insurance Fund for Employees, from the tourism industry increased
by 23% compared to 2013. Total remuneration of employees in the tourism industry reached €3.8bil., €500mil. higher
than the year prior. In July 2014 alone over 500,000 employees were registered in the industry, or 1 out of 3 workers in the
registered labour force. As shown in the below graph, the turnover index for accommodation and food services for 2014
increased by 13.7%, showing a clear acceleration in the growth rate compared to the previous year (+ 4.8%). In the second
quarter of 2015 the turnover index increased by 13.0% compared to the same quarter of 2014, evidencing the strength
of the current year’s performance.
Source: Hellenic Statistical Authority, edited by NAI Hellas
Expenditure Category 2013 (€ in mil.) 2014 (€ in mil.)
International tourism €11,707 €13,142
Cruise Expenditure €445 €466
Cruise Companies Expenditure €216 €191
Air-transportation €1,077 €1,177
Sea-transportation €148 €151
National tourism €1,195 €1,315
Investments €200 €200
Direct Contribution to GDP €14,989 €16,642
GDP €182,438 €179,081
Contribution as a % of GDP 8.20% 9.30%
Source: SETE Intelligence, edited by NAI Hellas
SECTOR Accommodation
Food Service
Activities
Sea
Transportation
Road
Transportation
Air
Transportation
Retail Entertainment
Travel
Agency
Rent
a Car
Conferences
WEIGHTED
AVERAGE
% of Total Income 45.3 18.0 9.0 7.1 5.4 4.9 3.8 3.7 1.8 1.0
Multiplier 2.5 2.5 2.41 3.25 2.98 3.69 1.9 3.68 1.39 4.13 2.65
Source: Centre of Planning and Economic Research, edited by NAI Hellas
16selido 21x29_5.indd 8 04/01/2016 16:08
10. 10 Part 5: Greek Hotel Product
The Greek hotel stock in H1 2015 amounted to a total of 9,706 hotels comprised of 403,792 rooms and 779,118 beds.
Hotel capacity in Greece increased from 2000 by 23.5%.
The average size of Greek hotels in terms of rooms reached 41.6 rooms in 2014, an increase of 5.9% from 39.3 rooms in
2000. As such, although the percentage increase in hotel establishments for the period 2000-2014 was 23.5%, growth in
number of rooms was 30.4%.
As presented in the following graph, approximately 60% of 5 star hotels in Greece have over 101 rooms while only 0.1% of
1 star hotels are of similar size. The largest percentage of 4 star hotels belong to the ‘Family’ and ‘Small’ hotel categories
and merely 25% of them belong to the ‘Large’ hotel category. Between 2013 and 2014, the category breakdown for each
type of hotel showed no significant changes except for a 7% increase in 5 star hotels of the ‘Family’ category. This means
there has been an increase in supply of ‘Boutique Luxury’ units.
Source: Hellenic Chamber of Hotels, edited by NAI Hellas
Source: Hellenic Chamber of Hotels, edited by NAI Hellas
Source: Hellenic Chamber of Hotels, edited by NAI Hellas
Considering the growth of hotel units in Greece according to their star category during the period 2000 - H1 2015, it is clear
that the hotel stock of the country has been significantly upgraded. Five star hotels quadrupled, being the category with
the highest growth. Four star hotels grew by 66% in the same period and account for 13% of the total stock (from 9.8%
in 2000). Three star hotels increased by 62%, yet their share remained constant over the years. Contrastingly, the share of
total stock of each of the two lowest categories fell since 2000. Two star hotels increased marginally by 3% between 2000
- H1 2015 while one star hotels decreased by 13%. In H1 2015, the top 3 star categories constituted approximately 60%
of hotel stock.
16selido 21x29_5.indd 10 04/01/2016 16:08
11. 11Part 6: Greek Hotel Performance
Occupancy Rate
Hotels overall in Greece suffered a difficult year in
2012 with falling occupancy rates. The growth of
tourism in 2013 and 2014 helped occupancy rates
increase, with 5 star resort hotels showing more
resilience while occupancy rates of 4 star hotels
were more volatile. In 2015 city hotels recorded
high occupancy rates heightening investor interest.
Average Daily Rate (ADR)
Averagedailyratesofresorthotelsweremuchhigher
than that of city hotels, given that they operate on
a seasonal basis and offer all inclusive packages.
5 star city hotels experienced less of a discount on
ADRs between 2010-2015 than 4 star hotels since
they went through a significant correction prior
to 2010. 4 star city hotels presented low ADRs
during 2013 aiming to maintain high occupancy
rates.
RevPAR
The difference in RevPAR results for 5 star resort
and city hotels reflects the high occupancy
apparent during the resort season compared
to that of the whole year for the city hotels. The
same relationship is not evident for the 4 star hotel
category given that the resort and city occupancy
rates show less of a discrepancy.
Investment
Greek hotels fared remarkably well in 2014 and 2015 with resort hotels presenting stable growth in key performance
indicators. However, the country’s leading performer for 2015 were the Athenian city hotels. Particularly, during the summer
and autumn months of 2015 city hotels in Athens recorded remarkably high occupancy and ADRs. Athens is becoming a
travel destination city and as such investment activity in the hotel sector in Athens is on the rise.
Source:NAIHellas
Note:Resorthotelsreferstohotelsoperating180daysayearwhileCityhotelsreferstohotelsoperating365daysayear.
Source: NAI Hellas
NAME LOCATION CATEGORY ROOMS OPERATOR STATUS
Grecotel Pallas Athena
Athinas Str, Omonia,
Athens
5 Star Boutique 63 Grecotel Hotels Resorts Operating since 2014
AthensWas Hotel
Dionysiou Aeropagitou
Str, Athens
Boutique Hotel 21 Anemi Hotels Operating since 2015
Ambrosia Hotel
Sokratous Str, Omonia,
Athens
4 Star Hotel 23 Swiss Hotel Project Operating since 2015
Emporikon Athens Hotel Eolou Str, Athens Boutique Hotel 14 The Athens new Story Operating since 2015
Domotel Kastri
El. Venizelou Av, Nea
Erythrea, Athens
5 Star Hotel 86 Domotel Hotels Resorts Operating since 2015
N/A
Patriarchou Ioakim Str,
Kolonaki, Athens
Boutique Hotel 36 Coco-Mat Hotels Resorts Expected in 2016
N/A
Mitropoleos Str,
Syntagma, Athens
5 Star Hotel 220 Electra Hotels Resorts Expected in 2016
Fashion House Hotel
Piraeus Str, Omonia,
Athens
4 Star Hotel 117 Mage Hotels Resorts Expected in 2016
Current Investment Criteria for the Hotel Leisure Market in Greece
Source: NAI Hellas
*After Tax Internal Rate of Return
EBITDA multiplier ATIRR* Equity Multiplier
5* / 4* Hotels 8.0x – 12.0x 15.0% - 19.0% 1.7x – 2.4x
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12. 12 Part 7: Villa Rental Market in Greece
Villa Holiday House Rental Environment
The rapid growth of Airbnb, Homeaway and other online platforms that have infiltrated the travel accommodation market
in Greece since 2010, have created a new player in the hospitality market. The growth of world travelers in combination
with high hotel rates and demand to travel at low cost made these platforms very popular. Platforms such as Airbnb, with a
market cap estimated at $24bil., are worth more than some of the world’s biggest hotel chains. The growth of this market
in Greece is the result of a combination of global and domestic factors. The primary factor contributing to the growth of villa
rentals is the increased global trend of travelling the world, with low accommodation costs, low flight costs and within an
environment that allows the traveler to experience the life of a local. Globalization’s new trend is glocalization. Travellers are
looking to experience the life of a Londoner, a Parisian, a Madridian and an Athenian through spending their holidays at a
villa, a house or a flat in the heart of the city. Furthermore, the cost of staying at a 5 star hotel is higher than that of renting
a villa or a house. Villa and house rental rates are considered to be a value for money choice for travelers in relation to star
hotel room rates. In Greece, high property taxation and maintenance costs have pushed owners of holiday villas and homes
to join the villa rental market as it is a very good way to produce income from the property. The outcome is that Airbnb and
other house and villa rental platforms have gained a large market share in hospitality.
After the tourism boom of 2013, Greek villa and holiday house owners are looking more and more to include their villa in
the short term seasonal summer rental market. The passing of Law 4179/2013 boosted the market’s repute by giving it an
institutional framework that secures its sustainability. Based on the new legislation, Greek villa rental owners are obliged to
register their villa with the Ministry of Tourism. As of 31/12/2014, approximately 6,500 villas were registered with the Ministry
of Tourism.
Greek Villa Rental Market Rates
The Greek villa rental market is concentrated in some of the most popular Greek tourist destinations such as Mykonos,
Santorini, Rhodes, Corfu, Paros, Crete and the islands of the Saronic Gulf. Rates for villas range from €28.83/person/day/
room in Rhodes and reach up to €190.83/person/day/room in Santorini. All rates are net and exclude additional charges
(15% - 30%) that travellers pay for management, villa brokerage services, travel brokerage etc. On the other hand, Greek
hotel room rates (based on standard room rates and excluding high end accommodation) begin at €48.19 for a 5 star hotel
in Rhodes and reach €233.75 for a 5 star hotel in Mykonos.
In order to conduct a comparative analysis of the Greek villa rental market several European villa rental markets were
researched including St. Tropez (FR), Sicily (IT), Capri (IT), Bodrum (TR) and Ibiza (ES). The findings, together with their
respective hotel market, are detailed below:
On average, Greek villas offer more competitive rates than that of similar destinations in Europe. Rhodes villa rental rates
are the most inexpensive while rates in Mykonos, the country’s most expensive destination, are still lower than those of
Capri and Ibiza. Similar to the villa rental market, Greek hotels in prime touristic destinations also continue to offer more
competitive prices than hotels in top European destinations during the holiday season.
Source: Airbnb, Homeaway, Flipkey, Booking.com/villas, Luxury retreats, edited by LMG Villas.
Note: Hotel rates are based on standard room rates and excludes high end accommodation.
VILLA RENTAL RATES HOTEL ROOM RATES
Location
MIN Daily Rate/person/
room
MAX Daily Rate/person/
room
MIN Daily Rate/person/
room
MAX Daily Rate/person/
room
Greece Selected Destinations
Saronic Islands (Aegina, Spetses) €60.57 €71.66 €60.41 €103.27
Mykonos €135.37 €219.80 €98.55 €233.75
Santorini €106.29 €145.72 €124.32 €219.04
Paros €74.61 €113.70 €69.13 €147.25
Rhodes €32.33 €57.29 €48.19 €114.02
Corfu €42.00 €107.93 €51.13 €154.94
Crete €50.20 €76.44 €66.74 €156.91
Greece - Average €71.62 €113.22 €74.07 €161.31
Europe Selected Destinations
St. Tropez (FR) €106.70 €151.46 €173.12 €244.89
Sicily (IT) €54.20 €67.60 €150.66 €313.13
Capri (IT) €172.80 €238.50 €248.60 €534.20
Bodrum (TR) €54.20 €66.33 €56.00 €122.10
Ibiza (ES) €208.57 €270.22 €112.00 €200.32
Europe - Average €119.29 €158.82 €148.08 €282.93
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13. 13Part 7: Villa Rental Market in Greece
When comparing the relationships villa rates have to hotel rates in Greece and in Europe, an disimilarity is found to exist.
Average rates for Greek rental villas are more similar to the country’s hotel rates compared to that in Europe, with the
exception of Ibiza. European villas, hence, on average offer significantly lower rates compared to 5 star hotels. In addition,
villa rates in Greece are more similar to hotel rates during off-peak season than they are during peak season, implying
that hotels offer competitive pricing during low seasons in order to achieve higher occupancy rates and expand their
tourist season. This causes villas to be priced out of the market, to an extent, during the off-peak months, whereas in
European destinations villa rentals maintain their lower cost accommodation standing throughout the holiday season. This
is a reasonable outcome given that hotels are managed by professional operators or experienced family teams who closely
monitor the market, while villa owners are individuals with relatively limited knowledge of the market and its dynamics.
Villa rental management companies are still relatively few compared to the size of the market and pricing strategies are
continuously being adjusted to bridge the gap between market rates and owners’ expectations.
The villa rental market in Greece is relatively new and still quite immature. Rates for villas and holiday homes in Greece are
still formed largely based on the owner’s perception of what his/her property is worth mainly because the market used to
be relatively small. Hotel rates, of course, on the other hand are formed based on market dynamics of demand and supply.
Source: Airbnb, Homeaway, Flipkey, Booking.com/villas, Luxury retreats, edited by LMG Villas
Note: Hotel rates are based on standard room rates and exclude high end accommodation.
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14. 14 ????????????14
The 2014 OECD’s Competition Assessment Review
of Greece recognises that the sun beach product
prevails in Greece and consequently creates a
high seasonality effect. The OECD comments that
‘the country has unrealised potential in alternative
forms of tourism that could be more evenly spread
across the seasons and concentrated on other
types of activities’. The review identified a number
of restrictions in Greek legislation that hinder
competition and effectively act as barriers to entry in
Greece. Based on the outcome of this review, Laws
4254/2014, 4276/2014, 4272/2014 as well as the
216/2015 Decision of the Minister of Tourism came
into effect in 2014 in order to abolish provisions
harmful to competition and barriers to investment,
while simplifying licencing and operational
procedures of tourist enterprises.
The industry has already begun lengthening its
season following the example of its Southern
Mediterranean competitors.
The Greek tourism industry’s high growth potential is
on course to be realised with numerous opportunities
waiting to be unlocked through:
• establishing additional touristic products (nautical
tourism, city break, medical tourism, cultural and
religious tourism and conference tourism)
• increasing its market share in emerging and long-
haul markets, and
• maintaining stable legislative, planning and tax
frameworks
Investment
Opportunities
16selido 21x29_5.indd 14 04/01/2016 16:09
