The cautious approach of the Greek tourism industry in the first days after the outbreak of the war in Iran has now given way to some concern.

The decline in bookings for travel and accommodation in Greece for the coming months compared to the same period last year, but the decrease this month in occupancy in hotels operating 12 months per year, and the limited bookings for the Easter holidays are the indications that cause nervousness.

Greek tourism also has other concerns, such as increased energy costs and the prohibitively high cost of transporting workers from Asian countries, like the Philippines, to cover seasonal labor needs, as has happened in the previous two years.

On Rhodes, a large-capacity hotel reports to Kathimerini a 20% drop in bookings taken in March for this summer compared to the same month last year. However, it clarifies that since the start of the year, the total volume of bookings for this year remains 7% higher than the same quarter last year. 

Hotels from Crete, Kos and the Ionian Islands also report similar market behavior. Two large hotel groups in Athens report a significant decrease in their occupancy during March and a drop in bookings. They have even had cancellations. Most of these are from Israeli visitors to the capital, who are unable to travel because Israel’s airports have been closed. But one of those two hotels also reports a cancellation from a US group. Businesses and destinations with significant exposure to the Israeli market are seeing a much greater impact.

Still unconfirmed information from Athens airport, however, indicates that the upward trend in passenger traffic continued in March, but driven more by the European and North American markets, as incoming travelers from Asia have dipped drastically. This is natural, since the major international airports of Doha, Abu Dhabi and Dubai have been closed. This is also the reason why the cost of transporting workers from Asia and countries such as the Philippines is now prohibitive. While last year a one-way ticket to Greece cost around €500-700, now it has exceeded €2,000-2,500.