Importance of the Hospitality Industry in Athens

Athens boasts a history of welcoming guests that dates back, to Greece, where inns were established to cater to travellers. Today tourism plays a role in the city economy the hospitality sector. This industry is vast and varied encompassing a range of services including hotels, restaurants, well as fast food and takeaway options that are increasingly popular. The diversity within this sector not only creates job opportunities for Athenians but also contributes significantly to the economy by catering to customers from diverse backgrounds. According to the World Travel and Tourism Council, tourism and its related services directly added 10% to Greece's Gross Domestic Product in 2017. When examining the business landscape, it becomes evident that the hospitality industry has an impact on various aspects of the city's environment – from social and cultural dynamics to economic influences. This impact is underscored by urbanization trends as the establishment of hotels and similar establishments attracts individuals from areas seeking employment opportunities, in Athens.

Purpose of the Analysis

The analysis aims to offer an overview of the hospitality sector, in Athens, Greece covering its size, economic impact and employment effects. It delves into the connections between hospitality and tourism in the city catering to individuals interested in pursuing careers in this industry or already engaged in it. The report also serves as a resource for policymakers and researchers aiding them in making decisions regarding regulation and advancement of the hospitality sector in Athens. By providing insights to industry stakeholders and raising awareness about its importance within the city this analysis hopes to foster growth and enhancement within the sector. It emphasizes how researching the scale and reach of the hospitality industry can benefit both students' learning experiences and professionals' practices. Initial research highlighted areas for exploration, such as changes, in economic landscapes and regulatory frameworks.

Exploring these challenges, in detail during the analysis will provide an understanding of how the industry could evolve and expand.

Size and Scope of the Hospitality Industry

The hospitality sector plays a role, in the economy of Athens, a global city known for its cultural, economic, and financial activities. Across the world, hospitality is recognized for its contribution to economies encompassing travel, tourism, and food services. Athens stands out as a favoured destination for hospitality growth due to its history and strategic location. This chapter delves into the tradition of hospitality in Athens as the foundation of its industry. It explores factors shaping the size and reach of the hospitality sector in the city. Examines its relationship with tourism. Additionally, it investigates the impact of hospitality on Athens and its broader national economy. The chapter concludes by addressing perceptions surrounding industry effects, on both hospitality and tourism practices.

The hospitality sector encompasses eateries, accommodations and services catering to tourists locally and internationally. In places, like Athens, the industry is thriving due to a flow of visitors. Tourism plays a role in Athens's economy by driving growth in sectors like food and beverage establishments. The collaboration among stakeholders such as government bodies, trade unions, educational institutions and the local community is crucial for development. Greece’s culture values hospitality deeply, through the concept of xenia emphasizing the importance of welcoming guests. Today creating a sense of community offers a space for individuals to feel welcomed and integrated socially even when they are unfamiliar, with one another. Present-day Greeks take pride in their connection to this age custom, which has paved the way for the growth of this sector, within the nation.

Statistical Overview of the Industry

The hospitality sector includes hotels, travel and tourism making it a significant industry worth billions of euros. It is estimated that for every euro spent in this sector in Greece, an additional 56 cents are added to the country's Gross Domestic Product. In 2016 the industry employed 409,000 individuals and this positive trend is expected to continue until 2026 with a projected growth of 17.5%, in job opportunities. Most of these jobs (93.2%) are within the service sector of the industry compared to the European Union average of 96% indicating that Greece's hospitality field relies more on labour than capital technologies like automation.

Moreover, there are opportunities for individuals in this sector as approximately 70% of the workforce is under the age of 45 representing the largest demographic group within the industry. Among them, 41.7% hold high school diplomas 25.9% have completed degrees or equivalent qualifications and another 20.3% possess postgraduate degrees or their equivalents.

Additionally, all businesses ( 99%) operating in this industry consist of fewer, than 250 employees categorising them as small or micro-enterprises.

However, 34.5% of the industry turnover represents this indicating the presence of numerous small and independent operators, in Greece. The industry displays diversity, particularly seen in the prevalence of foreign-owned businesses. Non-Greek individuals operate 44.6% of all businesses with certain sectors like Travel Agencies (over 71%) Youth Hostels (57%) Heritage Activities (56%) and Car Rental Activities (55%) showing a concentration of ownership. These businesses are mainly concentrated in tourist destinations such as Athens, Thessaloniki, and Crete. Around 75.5% of bed places and accommodation facilities fall under the category of traditional accommodations, including hostels, apartments, and various other unique lodging options. Greece attracts millions of tourists due to its landscapes and a wide array of activities ranging from water sports to vibrant nightlife experiences. In 2017 there was a 2.5% increase in accommodation beds while non-traditional bed spaces witnessed a significant rise at 5.6%. This shift indicates how tourists are diversifying their stay experiences and presents promising opportunities, for market entrants.

Linkages between Hospitality and Tourism

In discussing the "linkages between hospitality and tourism," we'll look at the concept of tourism and its relationship with the hospitality industry and how this inter-relationship impacts the industry. But first, let's distinguish between a "tourist" and a "traveller." A tourist is a person who travels for pleasure. He or she goes to destinations that are far from his or her usual environment for leisure. A traveller is also a person who is taking a journey, especially to a distant or unfamiliar place, but does not necessarily mean for pleasure. That person could be going for education, medical, or for a religious purpose. This is just a general idea between tour and travel, and in 1990, WTO made a clear definition. In practice, the distinction has not always been apparent to the industry with some confusion arising between a 'tourist' and other categories - particularly international visitors who come to a country for purposes other than tourism. However, the focus of the definition is that a tourist is someone visiting a place other than one's own home and must stay at least 24 hours. Usually, a traveller will be in a place no more than one year. The significance of this 24-hour rule is that it separates tourists from other categories that cover shorter visits under this definition. The actuality is that in most countries, different methods are used to gather tourism data and international standard.

Economic Impact and Contribution to the Economy

In 2014, tourism in Greece provided approximately 11.9% of the country's GDP, as well as supporting nearly 1 million jobs - which is about 22.6% of total employment. This is above the global average growth forecast, which is just under 4%. Astonishingly, Greece is ranked as the 16th most popular tourist destination in the world, and this is having a direct impact on the country's economy. Now because Athens is the capital and by far the largest city in Greece, this is going to experience most of the positive tourism impact. In Athens alone, tourism and hospitality are the main industries for the city, and this has created a range of job opportunities and helped with economic growth. I'm now going to focus on two economic issues: growth and employment. Well, first of all, the tourism and hospitality industry is an industry of growth. With the global average growth forecast for tourism being just under 4%, Greece and in particular Athens are outstripping this with a growth rate of 7-8%. This level of increasing demand provides a constant cycle of employment and more significantly, local employment. 96 cents and 80 cents, respectively, from every euro produced within the industry in the EU is reinvested in the EU economy. If Greece, and Athens in particular, can maintain this level of growth and continue to attract tourism coupling then this could become a crucial driver in terms of the national economy and ranking. So far, the signs are good - in 2017, revenue from tourism both directly and because of related economic impacts was estimated to be 16 billion, nearly a 7% increase from 2016. This naturally means that there is more opportunity for hotels, restaurants, and travel agencies, so the industry will employ more, and capital will be invested back into support growth.

The Wider Business Environment in Athens, Greece

The broader business setting, in Athens holds importance well. This context encompasses the economic factors that intersect with the hospitality sector shaping its functioning and profitability. Looking at the cultural aspects Athens deep deep-rooted history spanning over 3,400 years coupled with its abundance of medieval landmarks and attractions positions the city as a prominent tourist hotspot in the area. Additionally, Athens strategic geographical position at the junction of Europe, Asia and Africa attracts a range of regional tourists. Being recognized as a 'Global City' due to its role in financial, industrial, political, and cultural realms worldwide further underscores how global economic dynamics significantly impact the local hospitality sector. To succeed businesses must be adaptable to the evolving landscape. Given the nature of the hospitality industry businesses must embrace strategies in response, to changing environmental factors.

In understanding the impact of the business environment, on a company various forces and elements must be considered. To remain competitive and aware of market trends businesses must navigate through both influences, known as the environment and internal factors within their microenvironment. In the realm of Athens's hospitality sector, this macro environment encompasses a range of factors such as diversity, nationalistic sentiments, economic conditions, and legal frameworks. Cultural dynamics extend beyond boundaries and influence consumer behaviour. Society’s cultural norms, subcultures and religious beliefs play a role in shaping consumer preferences. Nationality also plays a part, in shaping perspectives on marketing strategies. Moreover, social structures further impact consumer choices. Amidst Athens, rich historical heritage lies a modern city adapting to business practices and global influences in today’s evolving landscape.

Cultural and Geographical Setting of Athens

Athens is the capital and largest city of Greece. It is a city of central importance - not only is it the political and economic centre of Greece, but it is also the country's cultural and historical centre. Athens is the birthplace of democracy, and its democratic history has left an enduring legacy which still shapes the economic, political, and cultural life of the city. Geographically, Athens is in the southeast of Greece. Situated in the region of Attica, the city extends to the peninsula that reaches into the Aegean Sea. The city itself is built in the plain of Attica, surrounded by a ring of mountains. These include Mount Abigale to the west, Mount Parness to the north, Mount Pentile to the northeast and Mount Hymettus to the east. Adjacent to the north and east of the main city, the city sprawls down to the coast. The city's origins also help to explain the current economic focus on tourism and the service industry. The ancient city was built on the slopes of the Acropolis. This is a strategic location as the Acropolis occupies the centre of Athens and there are excellent views over the surrounding area. However, the layout of the ancient city also instilled a culture of compact living and self-protection, which has been difficult to shake off even as the city has grown.

Factors Influencing the Hospitality Industry in Athens

The second factor that influences the hospitality industry in Athens is the rising competition. In his book, "Tourism, Power and Culture," Hall (2012) said that the Greek tourism industry grew considerably since 1960. As a result, the number of businesses that offer hospitable services also increased in that period. The situation has been complicated by the continued global economic growth, which has also stimulated growth in the travel and tourism industry. With the appearance of new hotels and the provision of exciting hospitality services, established businesses have been forced to lower their prices to remain competitive. Also, nowadays, people have a broad spectrum of choices of hospitality services. This means that businesses must be innovative in their offerings to remain sustainable. For example, due to technological advancements, in the last few years, there has been an increasing trend of booking flights and holidays online, which has created a new category of competition for industry players, so-called "Internet-based Travel Agents" and booking websites.

The first key factor that influences demand for hospitable services is the state of the nation's economy. This is because the amount of income that is available to be disposed of is influenced by the general economic well-being of a country. According to Dobson and Laswell (1936), people's capability and willingness to travel are subject to how well they are doing economically. This means that when households are enjoying increased income, they are likely to spend more on leisure activities. As a result, players in the hospitality industry in Athena’s experience fluctuating levels of demand for their services (Onuegbu D).

 International Economies and their Influence on Athens

It is evident, from these observations that Athens is increasingly relying on trade and the country's participation in organizations like the European Union has had a significant impact on the city economy. Despite Greece's time as an EU member, the liberalization of economic and trade processes has opened up the Greek market to its partners. A notable trend in trade is the shift from dependence on trade to increased engagement with European counterparts. Given that Athens the commercial hub in Greece it has been at the forefront of these developments. The positive effects of these changes on the economy and their influence on the hotel and broader tourism sector are evident. The rising significance of trade and markets in Athens, exemplified by investments in its airport will further elevate its status as a major European capital and commercial centre. Similar to nations globalization—marked by increasing international connections accelerated by advancements in information technology—holds the potential for fostering greater growth in Athen’s tourism industry and, across Greece.

In years there has been growth, in the Greek economy and tourism driven by factors like the increasing use of internet marketing and commerce on a global scale. This growth has led to investment and development in the hotel industry attracting companies interested in forming business connections with Athens and contributing to the economy through tourism projects. The city's transformation and rising popularity as a tourist destination have already resulted in an increase in visitors from 7.5 million in 2009 to 10 million in 2017 with projections indicating further growth ahead. The main source of income from tourism for Athens is now from visitors rather than domestic tourists. The shift towards visitors has seen a substantial rise from 65% of total income in 2009 to 75% in 2017 reflecting the impact of global economies and tourism on Athens's ongoing development across various sectors such, as the broader economy and hospitality industry.

 

In summary the examination of the hospitality sector, in Athens gives us an understanding of its origins, economic importance and the complex interaction between local and global influences. The research looked at how the industry has evolved over time moving from inns to a modern scene that offers a range of services and plays a significant role in Greeces economy. By looking at demographics and business features it highlighted how the sector is an employer that relies more on labor than on capital intensive technologies.

 

The study also explored how hospitality and tourism are closely connected explaining the distinctions between tourists and travelers. It emphasized how Athens heavily depends on tourism for its economy with growth rates surpassing averages and playing a part in generating jobs and income. The analysis of Athens business landscape considered geographical and economic factors to underscore the importance of being adaptable to changing circumstances.

 

Detailed descriptions of Athens cultural and geographical context revealed its focus on tourism as a driver. The study examined factors influencing the hospitality industry such as conditions and increasing competition highlighting both challenges and opportunities. The city's growing engagement, with partners, showcased its evolving dynamics on an international scale.

This, in-depth study provides information for policymakers, academics and professionals in the field shedding light on the condition of the hospitality industry, in Athens. With the goal of enhancing comprehension of the sector, the study aims to support informed decision making, sustainable growth and the ongoing prosperity of Athens hospitality industry moving forward.