Report on Post-Schengen Tourism Dynamics in Northern Greece and Alignment with Sustainable Development Goals

Introduction and Executive Summary

A comprehensive analysis of the tourism sector in Northern Greece reveals that the partial accession of Bulgaria and Romania to the Schengen Area has not generated the anticipated increase in visitor arrivals. The expected economic benefits, crucial for advancing Sustainable Development Goal 8 (Decent Work and Economic Growth), have been undermined by a combination of escalating costs, significant infrastructure deficits, and environmental pressures. This report examines the key factors hindering regional tourism growth and assesses the sector’s performance against several Sustainable Development Goals (SDGs).

Core Challenges to Sustainable Tourism Development

Economic Pressures and Affordability Crisis

The primary obstacle to tourism growth is the rising cost of travel, which directly impacts the economic sustainability of tourism for both providers and consumers, a key concern under SDG 12 (Responsible Consumption and Production). Key economic deterrents include:

• Sharp increases in the price of accommodation, dining, and local services.
• High fuel costs, which disproportionately affect road travelers from neighboring countries.
• A decline in perceived value for money, prompting traditional visitors to explore alternative Mediterranean destinations.

This affordability crisis is creating a notable divide, threatening the viability of small and medium-sized enterprises (SMEs) that form the backbone of the local economy, thereby challenging the inclusive growth principles of SDG 8.

Infrastructure and Connectivity Deficits

The failure to capitalize on eased border controls is intrinsically linked to inadequate infrastructure, a critical component of SDG 9 (Industry, Innovation and Infrastructure) and SDG 11 (Sustainable Cities and Communities).

1. Service Reliability: Mid-range and budget accommodations frequently experience unreliable water supplies and power outages, indicating a lack of investment in resilient infrastructure. This failure to provide basic services erodes customer satisfaction and discourages repeat visitation.
2. Transportation Links: A lack of dependable and affordable public transportation between Greece and its northern neighbors, as well as within the region, limits accessibility and fails to promote sustainable travel alternatives to private vehicles.

These shortcomings highlight a failure to build the resilient infrastructure necessary to support a sustainable and competitive tourism industry.

Climate and Environmental Factors

Extreme summer weather, characterized by prolonged heatwaves, has emerged as a significant deterrent to travel. This factor underscores the vulnerability of the tourism sector to climate change and the urgent need for adaptation strategies in line with SDG 13 (Climate Action). The high temperatures have negatively impacted tourist activity in urban centers like Thessaloniki, reducing footfall and discouraging outdoor activities.

Analysis of Regional Performance and Market Disparities

Geographic Variations in Tourist Arrivals

The impact of these challenges varies across Northern Greece, indicating an uneven distribution of economic benefits:

• Thessaloniki: Experienced a noticeable decline in tourist traffic and hotel occupancy in July.
• Pieria: Visitor numbers remained static compared to the previous year, showing no growth despite the Schengen expansion.
• Halkidiki: Maintained a high occupancy rate of 85%, though this was a slight decrease from the prior year. The region saw a demographic shift, with stable numbers from Bulgaria and Romania but an increase in visitors from Germany and Italy and a decrease from the UK.

Divergence Between Luxury and Budget Tourism

A stark contrast has emerged between different market segments, highlighting inequalities in economic resilience and benefit-sharing under SDG 8.

• Luxury Sector: Five-star resorts and premium establishments continue to thrive, maintaining high occupancy rates by offering superior infrastructure, reliable services, and all-inclusive comfort. This segment successfully attracts high-spending international and domestic travelers.
• Budget and Mid-Range Sector: Smaller, family-run businesses are struggling significantly. They are caught between rising operational costs and the tightening budgets of their traditional clientele, leading to a squeeze on the mid-market segment.

Conclusion: Missed Opportunities and the Path Forward

Implications for Sustainable Development

The Schengen expansion presented a significant opportunity to foster regional integration and sustainable economic growth, aligning with SDG 17 (Partnerships for the Goals). However, the lack of supporting investment in infrastructure, affordability, and service reliability has largely nullified the potential benefits. The current trajectory indicates a widening gap between thriving luxury tourism and a struggling mid-market, which is contrary to the goal of creating decent work and sustainable economic growth for all (SDG 8).

Strategic Recommendations

To realize the full potential of regional tourism and align with the Sustainable Development Goals, a structural transformation is required. Key areas for strategic focus should include:

1. Investing in Resilient Infrastructure (SDG 9): Prioritizing upgrades to essential utilities like water and power and developing sustainable cross-border public transport options.
2. Enhancing Economic Sustainability (SDG 8 & SDG 12): Implementing policies to manage costs and ensure affordability, supporting the viability of SMEs and ensuring tourism remains accessible to a broader market.
3. Building Climate Resilience (SDG 13): Developing strategies to mitigate the impacts of extreme weather on tourism operations and visitor experiences.

Without addressing these fundamental issues, Northern Greece risks failing to convert the opportunity of simplified travel into long-term, sustainable, and equitable tourism growth.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article discusses several interconnected issues that are relevant to the following Sustainable Development Goals (SDGs):

• SDG 8: Decent Work and Economic Growth: The core of the article revolves around the performance of the tourism industry, a key economic sector for Northern Greece. It discusses visitor numbers, hotel occupancy, business revenues, and the overall economic impact of tourism, directly linking to economic growth.
• SDG 9: Industry, Innovation and Infrastructure: The article explicitly identifies poor infrastructure as a primary reason for the stagnant tourism growth. It mentions “weak cross-border infrastructure,” “lack of reliable public transportation links,” “unreliable water supply,” and “frequent power outages,” all of which fall under the scope of this goal.
• SDG 10: Reduced Inequalities: The text highlights a “stark” and widening gap between the performance of luxury resorts and that of budget or mid-range hotels. It also notes how rising costs disproportionately affect middle-income families, creating economic inequality among both tourists and tourism operators.
• SDG 11: Sustainable Cities and Communities: The challenges described, such as inadequate public transport and failures in basic services like water and power, directly impact the sustainability and attractiveness of tourist communities like Thessaloniki, Pieria, and Halkidiki.
• SDG 13: Climate Action: The article points to “extreme summer weather” and “prolonged high temperatures” as a significant factor discouraging travel and contributing to the economic slowdown in the tourism sector, linking climate-related hazards to economic performance.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues raised in the article, the following specific SDG targets can be identified:

1. Target 8.9: “By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products.” The entire article is a case study on the challenges of achieving sustainable tourism growth in Northern Greece, highlighting how factors like affordability and infrastructure are undermining its potential.
2. Target 9.1: “Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being…” The article’s central argument is that the failure to develop this type of infrastructure (“weak cross-border infrastructure,” “unreliable water supply,” “power outages”) is hindering economic development in the region’s tourism sector.
3. Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all… irrespective of… economic or other status.” The article describes a growing economic divide where high costs are excluding middle-income tourists and smaller, family-run accommodations are being “squeezed,” pointing to a lack of economic inclusion in the benefits of tourism.
4. Target 11.2: “By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all…” The “lack of reliable public transportation links” is cited as a key failure preventing easier and more affordable travel within the region.
5. Target 13.1: “Strengthen resilience and adaptive capacity to climate-related hazards and natural disasters in all countries.” The article shows the tourism sector’s vulnerability to climate-related hazards, as “extreme heat” directly caused a “noticeable decline in tourist traffic” in Thessaloniki, indicating a need for greater resilience.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress:

• Tourist Arrival Numbers: The article states that visitor numbers from Bulgaria and Romania are “stagnant” or have “declined slightly,” serving as a direct indicator for tourism growth.
• Hotel Occupancy Rates: A specific figure of “85% hotel occupancy rate in July” for Halkidiki is mentioned, along with a “dropped” occupancy in Thessaloniki. This is a key performance indicator for the accommodation sector.
• Cost of Services: The article repeatedly refers to “rising travel costs,” “unaffordable fuel prices,” and sharp price climbs for “accommodation to dining and beach amenities.” These act as indicators of affordability and value for money.
• Infrastructure Reliability: The mention of “recurring issues such as unreliable water supply and frequent power outages” serves as a direct, albeit qualitative, indicator of infrastructure quality and reliability.
• Visitor Demographics and Spending Habits: The shift in visitor profiles (more Germans/Italians, fewer British) and the observation that budgets of middle-income households “no longer stretch as far” are indicators of market changes and economic pressures.
• Weather and Climate Data: The reference to “extreme heat” and “prolonged high temperatures” as a deterrent to travel implies that meteorological data can be used as an indicator of climate-related impacts on tourism.

4. Table of SDGs, Targets, and Indicators

Source: travelandtourworld.com