Use tourism revenue on infrastructure, economists say

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The Greek Panel of Economists, a group of economists associated with the Liberal Studies Center, recommends that a significant portion of tourism tax revenues be allocated to the development and maintenance of local infrastructure in tourist destinations.

According to data from the Institute of the Association of Greek Tourism Enterprises (INSETE), in 2024 the direct economic contribution of tourism reached €30.2 billion euros or 13% of GDP, while if its indirect contribution is also taken into account, it exceeds 30%.

As economists note, tourism creates significant challenges, including the intense pressure on the carrying capacity of infrastructure – from water supply and waste management to networks and the wider environment in many popular destinations – especially on islands, where emergency solutions such as water supply systems often need to be deployed.

Investment in the maintenance and upgrading of this infrastructure is a necessary condition for the sustainable support of tourism.