Central bank urges greener investment and diversification as tourism dependence increases economic risks
ATHENS, June 25 (BV)— Climate change and over-tourism are emerging as two of the biggest long-term threats to Greece’s tourism industry, the Bank of Greece warned, cautioning that the country’s heavy reliance on tourism also leaves its economy increasingly exposed to external shocks.
In its latest Monetary Policy Report, the central bank said Greece ranks among the tourism-dependent economies expected to be significantly affected by climate change, with increasingly frequent heatwaves and extreme weather events disrupting both visitor demand and tourism services.
The report says climate risks must become an integral part of tourism planning, as rising temperatures, water shortages and severe weather increasingly affect one of the country’s most important economic sectors.
The Bank of Greece recommends reducing the industry’s dependence on the summer season by extending tourism throughout the year, promoting less-visited destinations and investing in alternative forms of tourism, including cultural, nature-based and wellness tourism.
It also calls for greater investment in sustainable infrastructure, environmental protection and more efficient management of natural resources to strengthen the long-term competitiveness of Greece’s tourism sector.
The central bank also warned about the growing impact of over-tourism, particularly in popular island and coastal destinations.
It said the challenge extends beyond visitor numbers and includes geographical concentration, seasonal overcrowding and pressure on local infrastructure and public services.
According to the report, the rapid expansion of tourism over recent decades has placed increasing strain on local communities and natural resources.
The Bank of Greece identified the growth of low-cost airlines, digital booking platforms, cruise tourism and rising international incomes as key drivers behind the surge in visitor numbers.
While tourism remains one of Greece’s strongest economic pillars, the report warns that excessive dependence on the sector makes the economy more vulnerable to geopolitical crises, climate events and other external disruptions.
The findings come as Greece expects another record tourism season in 2026, while authorities face mounting pressure to balance economic growth with environmental sustainability and the quality of life in some of the country’s most visited destinations.