This year’s July for hotels “closed” with a “small, but… decrease” in the average occupancy of (-)1.9% compared to 2023, but also compared to 2022 also by (-)1.9% of Athens reports the Hotel Association of Athens – Attica.

See HERE ITEP data

The average occupancy at the level of 7 months 2024 “locked” at 77.2% compared to 75.3% in 2023. The positive change recorded in the 7 months of the order of 2.5% compared to the corresponding 7 months 2023, results mainly from the positive course of first months of 2024 and not as one would expect from the tourist “peak” quarter (May – June – July) which traditionally records an increase in average occupancy and not a decrease. Although we do not yet have the August 2024 figures in hand, the estimate for this year’s August trajectory is similar and we await the movement and performance figures with interest. The positive news concerns the average hotel price and the average revenue per available room which moved to better levels.

Specifically:

This July, in Athenian hotels, average occupancy was 87.2%. At this point it is recalled that for 2024 to date, only June 2024 recorded very good occupancy (91.7%) while May, although a peak month for Athens, appeared with a negative sign in occupancy by (-)2.7% vs. 2023. The same was observed in June, i.e. a small deviation of the average occupancy up to (-)1.5% vs. June 2023.

This is reported by EXAA as the specific trend of “decline” in the average occupancy in hotels, although small, is independent of hotel prices and certainly cannot be attributed to an increase in the capacity of the destination in hotel beds, but it can be explained by the excessive increase in the number of short-term rental tourist beds in Athens – Attica, as can be seen from the data we collected with the help of the Institute of Tourism Research and Forecasting (ITEP):

The specific data, which were made public by the EXAAA and to the Ministers of Tourism, Economy & Finance and Development through a recent letter and derive only from the ‘Airbnb’ platform and not from the other international booking platforms, concern the period 2014 – 2023. According to these, at the level of the Region of Attica, the beds in short-term rental accommodation, increased by 751% compared to 16% of hotel beds (!). This means that short-term rental capacity grew at an average annual rate of 24%, compared to 1% of hotel capacity. At the same time, in the same period 2014-2023 at the level of Athens, beds in short-term rental increased by 770% compared to 29% of hotel beds (!). This means that Airbnb capacity grew at an average annual rate of 24%, compared to 3% of hotel capacity.

EXAAA asked the competent Ministers to intervene as in the view of the Union, the current legislative framework is at least insufficient and needs immediate and substantial interventions, such as those launched in other European / international tours. destinations. At the same time, however, the current legislative framework also provides certain possibilities for catalytic intervention: For example, paragraph 8 of article 111 of Law 4446/2016 provides for the possibility of establishing specific time and numerical restrictions on the operation of short-term rentals in specific areas. More specifically as pointed out ‘for reasons related to the protection of housing, geographical areas should be defined where restrictions on the availability of properties for short-term rental will apply’ – something which the hoteliers of Athens-Attica and Argosaronikos absolutely agree with, as it also touches on the issues concerning the so-called ‘carrying capacity’ of the tourist destination and must be implemented, even if belatedly, to put a ‘brake’ on the uncontrolled operation of the specific activity (short-term rental) for the benefit of the capital and its islands, its visitors, but also its residents.

Other Movement & Performance data for 7 months 2024

As far as the rest of the traffic and performance data for 7 months 2024 for the hotels of Athens, the following are noted:

  • The best average occupancy at the level of 7 months continue to show 3* hotels (84.1%), followed by 4* (76.6%) and 5* (72.4%).
  • OR Average Room Rate (ADR) of 7 months 2024 reached 149.09 euros (increase by 9.9% compared to the 7th month of 2023) and
  • the medium Revenue per Available Room (RevPar) 7 months 2024 reached 115.07 euros – against 102.07 euros in the 7th month of 2023 (an increase of 12.7%).
  • OR Average Room Rate (ADR) July 2024 was 179.84 euros (an increase of 8.3% compared to last July) and
  • the Revenue per Available Room (RevPar) July 2024 was 156.83 euros (a 6.3% increase over the corresponding July 2023 RevPar).
  • From the observation of the performance of the cities – competitors of Athens, in the 7th month of 2024:

The average occupancy of Athens hotels (77.2%)surpasses the average occupancy of Istanbul (65.8%), which also happens to be the lowest 7-month average occupancy at the level of cities-destinations under consideration, but also for the first time surpasses Madrid (76%), revealing the dynamics of Athens .The best average occupancy was recorded by Barcelona (78.6%) and London (79.1%).

The Average Room Rate (ADR) and revenue per available room (RevPar) 7 month 2024 of Athens (ADR €149.09 & RevPar €115.07)surpass those recorded by Vienna (ADR 128.19 euros & RevPar 86.91 euros), Berlin (ADR 125.99 euros & RevPar 89.58) and Istanbul (ADR 132.24 euros and RevPar 87.1 euros ), however they are still quite far from the much better performance of the rest of the competitor cities. For example, Madrid, although it recorded lower occupancy than Athens in 7 months, achieved an increase in the Average Room Rate (ADR) for 7 months 2024 by 16.5% recording an ADR of 168.61 euros but also a RevPar of 23.1% (128.14 euros) . As for the price performance of the other cities: Barcelona recorded ADR €189.98 & RevPar €149.32, Rome ADR €238.68 & RevPar €172.33, Paris ADR €334.23 & RevPar €243.65, London ADR €224.94 & RevPar €177.93, Amsterdam ADR €177.33 & RevPar €132.11 and so on.

“We have long expressed our appreciation that Athens, despite its inherent weaknesses, is on a steady trajectory of popularity and growth, but we point out that the drop in occupancy we see during peak months in traditional accommodation (hotels) should hit everyone the bell of… vigilance.
For our part, we insist – and will insist – on the need to provide high-quality tourist services to the visitor, which requires the ‘housing’ of our offer and a correct geographical distribution of tourist beds in the destination, taking into account the need for a better everyday life not only for the visitor, but also for the Athenian citizen, worker and business – touristic or not” emphasizes EXAA.