There are strong growth prospects for tourism in Greece, with two new hotel openings already in the pipeline, Patrick Mendes, CEO of Accor for Europe and North Africa, tells Kathimerini.
He also notes, as in other countries, a shift in demand toward the off-peak months, as travelers attempt to avoid overcrowding and increasingly high temperatures during the traditional holiday season. He further expresses the belief that, despite any hikes in resilience and accommodation fees, Greece remains an exceptionally attractive destination, and he does not expect any impact on its competitiveness.
Mendes, who is specifically responsible for the brands in both the top category (premium) and the midscale and economy categories in Europe and North Africa for Accor, is visiting Athens and spoke to Kathimerini about the group’s plans in the country and internationally. “We are committed to expanding our presence, leveraging the country’s dynamic tourism landscape and our unique position within it, looking both at city hotels and leisure destinations that are less saturated and can offer a pristine and positive hospitality environment,” he emphasizes, adding that “today’s travelers are looking for more than just affordable prices. They seek unique experiences, rich and authentic culture, and well-preserved natural and historical sites, all of which Greece continues to offer in abundance.” Looking ahead, he observes that the growing demand from India, the United States and Asia could further boost the European destination. However, he warns of the need to remain vigilant against potential new sources of instability globally.
Why are you investing in Greece, and what challenges do you identify in the market?
Our premium, midscale and economy development strategy is based on increasing value creation in our historical markets of strength such as France, Germany, Austria, Switzerland and the UK. These are the key markets we focus on to solidify our leadership in midscale and economy brands, while also pushing forward with our premium brands. We are also exploring high-potential markets that can offer size, growth and profitability, like the Mediterranean, and we consider Greece a strategic destination. For us, Greece is a key development country, where we aim to expand. We are committed to expanding our presence, leveraging the country’s dynamic tourism landscape and our unique position within it and we are looking both at city hotels and leisure destinations that are less saturated and can offer a pristine and positive hospitality environment. Speaking of challenges, hotel development in Greece involves a complex interplay of regulatory compliance, strategic land acquisition, robust financing solutions, and operational planning. Our success is based on a clear and strategic approach that overcomes these challenges and allows our properties to take full advantage of Greece’s strong tourism potential. Accor has a clear strategy to develop in Greece and has long-standing experience in managing such challenges.
Are there further expansion plans for your group in Greece?
Greece, as I explained to you, is one of the countries where we have our strongest ambition to expand. We are exploring several opportunities both with our Luxury and Lifestyle Division and the premium, midscale and economy. At the moment, we are really looking forward to launching two of our international brands in Greece in 2025. We will open our first Handwritten Collection in Greece, with a very exciting property in Iraklio [Crete]. Launched in 2023, the brand is a collection of carefully curated hotels, each celebrating the warmth and character of its dedicated hosts. In the past year alone, the brand has opened 17 destinations around the world, including Paris, Malta, Sidney, Shanghai, Phuket and Cracow, among others. With over 30 hotels in its development pipeline and over 150 additional projects under discussion, Handwritten Collection is well positioned as one of the fastest-growing collection brands in the world. The second project will be the first Movenpick in Greece, which is located in Sivota, near Agios Nikolaos. Movenpick, founded in Switzerland in 1948, built on a philosophy of service quality and the distinctive brand characteristics that make it highly adaptable, and welcoming local variations of architecture and decor. Both these projects are conversions of existing hotels and we are seeing that “conversion brands” are among the fastest-growing categories in the industry. They play a pivotal role in expanding our network and attracting independent hoteliers.
‘The Mediterranean remains undeniably one of the most popular destinations. Despite the challenges of overtourism and heatwaves, there is a trend for travel during off-peak periods, indicating that it remains a favorite for many travelers’
In light of the recent increases in the resilience fee and the stayover tax, do you believe Greece is still a competitive destination?
We see that popular destinations like Venice recently introduced an entrance fee to balance the increased demand from visitors not staying overnight, with other hotspots like Rome and Milan also planning an increase in such contributions. The recent increase in tourism tax is intended to support the local destinations and balance the growth in tourism in the long run, which ultimately can benefit both visitors and residents. Despite this change, we are confident that Greece will continue to be competitive and one of the most desired destinations in the world. Travelers are looking for much more than affordable prices, they seek unique experiences, rich and authentic culture, and well-preserved natural and historical sites, all of which Greece continues to offer in abundance.
Greece has experienced an increase in travel volumes outside the peak months of July and August. Are you observing similar patterns in other markets?
According to a study we released early this year, we saw that many travelers intend to avoid peak season, influenced by concerns over rising costs and extreme heat. One in three respondents across Europe, 32%, say they will purposefully take a holiday outside of peak season to reduce costs, while one in five, 19%, expect to do so to avoid the risk of heatwaves. Last summer saw heatwaves across Southern Europe. If large numbers of travelers seek to sidestep the heart of summer, it could potentially lengthen the season in destinations with high temperatures. Some travel businesses are taking this into account by offering holidays in some Southern Mediterranean destinations year-round. While there is potential to extend the tourist season, this will also require adjustments to meet demand. School holidays in many European countries, as well as the increase in digital nomads and “bleisure” travel, which combines business and leisure, will also contribute to shifting tourism activity to off-peak periods.
With 5,600 hotels in 110 countries, Accor is the largest hotel group in Europe and one of the largest globally, managing or controlling more than 45 brands. The group’s operations range from luxury hotels to more affordable hospitality services. In Greece, Accor operates eight hotels, including flagship properties such as the Athens Capital Hotel – MGallery Collection, Sofitel Athens Airport, Novotel Athenes, and ibis Styles Athens Routes. On Corfu, there’s the Angsana Corfu, and on Crete, ibis Styles Heraklion Central and NIKO Seaside Resort Crete – MGallery Collection. On Rhodes, there’s the Mercure Rhodes Alexia Hotel & Spa, and two more hotels are set to open in 2025.
Climate change & overtourism
How do you address the challenge of overtourism?
Overtourism is a real challenge. Approximately 95% of travelers visit only 5% of the planet, which puts enormous pressure on destinations, as well as the local communities. The travel and tourism industry plays a critical role in the global economy, accounting for up to 10% of global GDP while supporting 10% of global employment. However, the consequences of climate change and the impact of overtourism are also affecting the cultural and historical sites and treasures that make up the richness of the territories and local communities. As a global hospitality leader, we focus on two core strategies: On one side, we are collaborating with public authorities, particularly mayors, through initiatives like the C40 alliance. On the other side, we have recently entered into a three-year partnership with the World Monuments Fund (WMF) to protect cultural heritage and strengthen local communities.
How do you view the future of tourism both globally and within the Mediterranean region?
The global tourism industry is expected to reach pre-pandemic levels by the end of 2024. The Mediterranean continues to attract travelers from around the world and remains undeniably one of the most popular destinations. Despite the challenges of overtourism and heatwaves, there is a trend for travel during off-peak periods, indicating that it remains a favorite for many travelers. When we talk about the global landscape of hospitality growth, it’s impossible to ignore the immense potential that India presents in this sector. It is emerging as a beacon of opportunity and is poised to become one of the most significant sources of growth in the global hospitality industry in the next five years. We are also observing a strong flow of tourists from the US, supported by the strong dollar. The Asian market still has significant growth potential, while new visa measures in the Middle East and Africa are facilitating travel there. Additionally, we anticipate that business travel will increase in 2025, both in terms of numbers and spending. At the same time, Europeans appear confident in their purchasing power despite the ongoing cost of living pressures. However, global volatility and potential instability remain factors that could impact travel to some countries. We must monitor developments and adapt.
What sustainability policies have you adopted?
We prioritize a sustainable development strategy with the aim of reducing greenhouse gas emissions in alignment with the Paris Agreement, implement energy and water conservation plans, eliminate single-use plastics, reduce food waste, and adopt a voluntary policy focused on diversity, equality and inclusion.