A new study by the Institute of the Association of Greek Tourism Enterprises (INSETE) challenges the persistent stereotype of Greece as having a low-productivity “cafe economy” that’s solely dependent on consumption, and with little innovation or development.
The analysis provides evidence that over the last decade, the country has gradually shifted toward a new, extroverted productive model where manufacturing and exports are growing alongside tourism.
Contrary to the narrative of a tourism monoculture, the data reveals that since 2015, exports of goods have grown at an average annual rate of 7.8%, outpacing both tourism receipts (4.8%) and overall GDP growth (3.4%).
The manufacturing sector has shown particular resilience; between 2013 and 2024, production increased by approximately 3% annually—higher than the GDP growth rate of 2.7%. This expansion is mirrored in the labor market, where manufacturing employment grew by 2.3% per year, double the rate of total employment growth (1.1%), accompanied by an 8.8% increase in investments in mechanical, transport, and technological equipment.
The report also highlights a dramatic turnaround in the agri-food sector, which moved from exhibiting a trade deficit of €3 billion ($3.56 billion) in 2008 to a achieving a trade surplus of €460 million ($545.28 million) in 2023.
Furthermore, Greece’s international competitiveness has improved significantly, evidenced by a -32.9% adjustment in the Real Effective Exchange Rate (based on Unit Labor Costs) compared to the fourth quarter of 2009.
The study also notes that during periods of normality, Greek productivity has risen at satisfactory rates – +1.23% annually between 2017–2019 and +1.9% between 2021–2025.
INSETE also clarifies tourism’s role in the labor market, noting that hospitality and accommodation accounted for approximately 19% of new jobs created after 2013—a significant figure, but far lower than the “almost half” often cited, according to the report, in Greek public discourse.
The report concludes that, ultimately, Greek tourism acts as a comparative advantage that supports, rather than hinders, sustainable development.
