The tourism footprint in retail trade

Source: Image by Freepik

The “triple crisis” (fiscal, health and price crisis) has highlighted the need for a new sectoral specialization of the Greek economy in order to improve its resilience. Some sectors are considered to be of strategic importance for the transition of the Greek production model. One of these sectors is tourism, whose contribution in terms of value added and employment has been significantly enhanced until 2019. Tourism, as the economy of final consumption, creates linkages with other sectors of the economy, bringing about significant multiplier cross-sectoral benefits.

The retail sector is one of the most typical cases of these interrelationships. However, it can be observed that tourism expenditure has become more inelastic over the years, with the result that tourists tend to budget their potential costs before they travel. Also, the gradual growth of the “all inclusive” tourism sub-sample is associated with significant changes in tourism demand, directly affecting tourism retailers. Another factor that represents a major change in tourism activity is the explosion of short-term property rental, which, in addition to the restaurant and entertainment sector, also affects the retail sector.