Boom passes some hotels by
The boom in foreign visitor arrivals has passed 1- and 2-star hotels by, leading to a wave of closures over the past 15 years. In 2009, there were 1,568 1-star hotels in Greece and 4,368 2-star units. At the end of 2024, according to Hotel Chamber data, 1-star hotels had declined to 1,147 and 2-star ones to 3,251, a total loss of 1,538 hotels or nearly 2 per week.
It is a development totally obscured by the dominant narrative, of a massive tourism boom, especially following the Covid-19 pandemic, billions in investments and hotel upgrades and the construction of brand-new resorts.
One can see in many places the abandoned husks of the former hotels, some with boarded windows, others obviously raided and stripped of their fixtures.
A small number have been converted into housing for seasonal employees in larger, more luxurious units, not always offering acceptable living conditions. An even smaller number have been converted into boutique hotels.
These were all family businesses hurt by the decade-long financial crisis, followed by the pandemic, which made continuing their operations impossible. Saddled with debt, they never had serious access to bank loans.
Ilias Bellos