Tuesday, June 24, 2025
The ongoing Israel-Iran conflict is significantly affecting Greece’s tourism industry, threatening a sharp decline in Greek tourism revenue. As international travel patterns shift, both Israeli and Australian tourists are reconsidering their trips to Greece. This disruption is leading to a series of travel cancellations, creating a considerable financial strain on the country’s tourism sector.
Disruptions in Israeli Travel to Greece
The Israel-Iran conflict has led to a halt in all flights between Israel and Greece, except for repatriation flights. This disruption is severely impacting Greek tourism revenue, as Israel is one of Greece’s top tourist markets. Major Israeli travel agencies have already canceled bookings for June, and many cancellations are expected to extend into July.
- Financial impact: Greece may lose up to €150 million in tourism receipts if the conflict ends soon and flights resume by July.
- Long-term losses: Should the situation drag on throughout the summer and into the fall, the tourism sector could face losses exceeding €300 million.
In 2024, 621,000 Israeli tourists visited Greece, contributing €419 million to the tourism industry, which accounts for 2% of Greece’s total tourism revenue. Israeli tourists are considered high-value customers due to their higher spending and longer stays. On average, Israeli tourists spend €676 per person and stay for 6.3 days, visiting key destinations like Crete, Rhodes, Kos, Athens, and Thessaloniki.
The suspension of flights and the uncertainty surrounding the conflict have led to a decrease in the number of scheduled air seats from Israel to Greece. This is putting at risk future growth, with a 42.3% increase in scheduled seats for 2025 now in jeopardy. This situation could create significant challenges for Greek tourism revenue.
Australian Tourists Rethink Their Travel Plans
In addition to the loss of Israeli tourists, the Israel-Iran conflict has also prompted Australian tourists to reconsider their plans to visit Greece. Traditionally, many Australian travelers pass through Middle Eastern transit routes to reach Greece. However, due to the instability in the region, many Australians are now opting for alternative routes, such as through Singapore, or choosing to cancel their holidays altogether.
- Change in travel patterns: More Australian tourists are choosing to delay their vacations, with many rescheduling their trips for next year.
- Impact on tourism revenue: The rerouting and cancellation of Australian travel plans are contributing to the financial strain on Greece’s tourism sector.
The decline in Australian visitors, coupled with the ongoing Israel-Iran conflict, is further harming Greek tourism revenue. Australian tourists, who contribute significantly to the high-end tourism segment, are crucial to the economy, and their decision to cancel or delay travel plans adds to the growing list of tourism losses.
The Long-Term Effects on Greece’s Tourism Sector
With both the Israel-Iran conflict and the shifting travel behaviors of Australian tourists, Greece’s tourism sector is facing a tough road ahead. The financial repercussions of these disruptions could extend for months, especially if the situation in the Middle East remains unresolved. Greece’s tourism industry, a key pillar of the country’s economy, will need to adjust quickly to these new challenges.
Important factors to watch:
- Greek hotel bookings: Many prepaid hotel bookings are being deferred, and customers are receiving credits for future stays. These changes in booking patterns are another indication of the impact of travel cancellations.
- Loss of revenue: The combined decline in both Israeli and Australian tourists could result in severe revenue losses, further compounding the situation if the conflict continues into the high summer months.
Despite these setbacks, Greece remains hopeful for a recovery. The government and tourism bodies are monitoring the situation closely, hoping that peace will soon return, allowing international flights to resume and tourism to bounce back. However, if the situation persists for an extended period, the strain on Greek tourism revenue will only grow, creating a more prolonged economic impact.
Conclusion: A Difficult Road for Greek Tourism
The Israel-Iran conflict and shifting travel habits of Australian tourists have combined to create significant challenges for Greek tourism revenue. While Israeli visitors have traditionally been a high-value segment for Greece, the ongoing geopolitical tensions have led to substantial disruptions. At the same time, Australian tourists are also changing their travel plans, adding to the growing concerns about tourism losses.
The tourism sector could lose hundreds of millions of euros if these disruptions continue throughout the summer. Greece’s tourism industry is at a crossroads, with recovery dependent on the resolution of the Israel-Iran conflict and the restoration of stability in the region. To mitigate these losses, government officials and tourism organizations will need to find ways to adapt and safeguard Greece’s position as a top destination for travelers.
