Despite successive records in tourist arrivals and revenues in recent years, Greece has seen 1,538 one- and two-star hotels shut down over the past 15 years, according to a report by Kathimerini.
In 2009, the country counted 4,368 two-star and 1,568 one-star hotels. By the end of 2024, the figures had fallen to 3,251 and 1,147 respectively—a loss averaging two closures per week.
In contrast, more than 450 new five- and four-star hotels and 244 three-star hotels opened between 2019 and 2024—about three per week.
Of Greece’s 10,104 hotels, 4,398 are in the one- and two-star categories.
The investment value of these projects, whether for new construction or upgrading existing facilities, is estimated at roughly €2.5 billion annually, or nearly €12 billion over five years.
These budget establishments—long the backbone of Greek tourism—have struggled to survive, crippled by owners’ inability to maintain operations amid the decade-long financial crisis and, later, the pandemic.
With limited or no access to bank financing, and unable to charge high prices for the facilities and services they offer, the remaining low-category hotels face mounting difficulty in sustaining their operations.
What is fyi.news?
