How tourism has affected the economy of the Mediterranean countries

6 min reading time

Published on 11/06/24 - Updated on 23/10/24

Venice, Italy. Source: Unsplash

Tourism stands as a cornerstone of economic vitality in Greece, Spain, and Italy, each country harnessing its allure to captivate visitors worldwide.

In Greece, tourism contributes significantly to GDP and job creation, with its rich historical sites and beautiful coastlines drawing millions of travelers. Spain boasts robust tourism growth, outpacing overall economic performance and driving job creation, particularly in accommodation and travel sectors. Meanwhile, Italy's diverse regions, from the landmarks of Rome to the landscapes of Tuscany, play pivotal roles in generating substantial GDP impact and fostering millions of jobs. Together, these nations exemplify the enduring power of tourism in shaping their economic landscapes.

Greece:

Tourism plays a pivotal role in Greece's economy, driving significant contributions to GDP and employment. According to the study from INSETE INTELLIGENCE (Institute of the Association of Greek Tourism Enterprises), with title “The contribution of tourism to the Greek economy in 2023”, the direct contribution of tourism to the Greek economy on that year was estimated at €28.5 billion, accounting for 13.0% of GDP. This marks an increase from €23.9 billion and 11.6% of GDP in 2022, and €23.1 billion and 12.6% of GDP in 2019.

GDP of Greece. Source: INSETE Intelligence

Moreover, it is noted that when considering the multiplier benefits, tourism's total contribution in 2023 ranged between €62.8 billion and €75.6 billion, representing 28,5% to 34,3% of GDP. This is a notable rise from 2022's €52.6 billion to €63.3 billion (25.4% to 30.6% of GDP) and 2019's €50.8 billion to €61.2 billion (27.7% to 33.4% of GDP).

This study highlights that the period between 2022 and 2023 saw Greece's GDP increase by 6.6%, equivalent to €13,682 million, with tourism activity growing by 19.5%, adding €4,650 million directly and between €10,230 million and €12,322 million both directly and indirectly.

Over the longer term from 2019 to 2023, GDP grew by 20.2% or €36,955 million, with tourism activity increasing by 23.5%, contributing an additional €5,435 million directly and between €11,957 million and...

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