Effects of Crises on the Tourism Sector: The Case of Greece

Abstract

Aim: This study aims at investigating the contribution of tourism to the economic growth of Greece and how this sector was affected by the two crises: the socio-economic crisis that Greece faced after 2008 and the emergence of the COVID-19 pandemic in 2020. Methodology: The study concentrates on Greece during the years 2005, 2010, 2015, and 2020, using the Input-Output Analysis as a methodological tool. This method is frequently used to interpret the function of an economic system and the productive relationships among different sectors of an economy. Results: The data analysis presents that the two crises appear to have negatively affected the dynamism of tourism related sectors such as 'Accommodation and food services' and 'Rental and leasing activities'. On the contrary, sectors like 'Retail trade services' and 'Creative, arts and entertainment services, etc.' seem to have great resilience throughout the two major crises. Furthermore, the prominent role of 'Transport services' sector during the period 2005-2020 is worth to be mentioned for the intensity of its strong interindustry exchanges with other sectors of the economy. In general, interindustry exchanges of the sectors related to tourism seem to have satisfactory levels of intensity in the four years under examination revealing the dynamism of tourism and its contribution to the recovery of the Greek economy from the dual crisis. Conclusion: The two crises that Greece experienced, have affected the sectors related to tourism to a different extent and policy makers should take this fact under consideration. Resource allocation should focus on the development of leading sectors as well as on sectors generating the highest multiplier effects. Additionally, enhancing the interdependencies among dominant sectors can contribute to the creation of a more competitive tourism sector that can be resilient to future crises.