Santorini Earthquakes Might Affect Greek Tourism Revenue: NBG Report

As the ground under the feet of the locals on the cosmopolitan Island of Santorini in the Aegean Sea continues to “rumble” due to the ongoing earthquakes, the National Bank of Greece (NBG) attempted to gauge the potential impact on Greece’s tourism revenue.

In a special report focusing primarily on the political developments in the U.S. and their ramifications for Greece, the systemic bank made special reference to how much Greece’s tourism sector might suffer from the Santorini earthquakes.

The report highlights that the heightened uncertainty caused by intense seismic activity in and around one of the most Instagrammed places on the planet in January could weaken the upward trend of tourism, a major source of revenue in the Greek economy.

The areas directly affected by the tremors account for approximately 4% of both the country’s annual tourism revenues and the total annual turnover in the accommodation and food service sectors. This figure rises to around 10% when considering the Cyclades as a whole.

Tourism earnings in Greece for 2023 amounted to €20.5 billion. According to the National Bank’s analysis, 4% of this amount originated from Santorini, translating into an estimated €820 million. Data from the Hellenic Statistical Authority (ELSTAT) further indicates that the turnover of accommodation businesses on the island, which has been affected by seismic activity, was close to €500 million in 2023. Specifically, the 1,216 accommodation establishments in Santorini generated revenues of €495.1 million.

The food service sector on the island also demonstrated substantial financial activity, with a turnover approaching €200 million in 2023. More precisely, the 712 dining establishments recorded revenues of €196.9 million. These figures underscore Santorini’s economic significance within the Greek tourism sector and highlight the potential vulnerabilities caused by external factors such as seismic activity.

Earlier on Friday, Greek Prime Minister Kyriakos Mitsotakis traveled to the Cycladic island to get a first-person perspective on the situation on the ground.