Published on
November 9, 2025
Greece’s tourism industry is experiencing an unprecedented surge, with record numbers of visitors flocking to its iconic islands and historic cities. This boom, fueled by Greece’s rich cultural heritage, stunning landscapes, and thriving summer season, has significantly boosted the economy. However, this rapid influx of tourists is putting immense pressure on the country’s island infrastructure, which was not designed to handle such high demand. With overcrowding becoming a major issue and vital services like transportation, waste management, and energy facing strain, Greece is facing an urgent need for an infrastructure overhaul to ensure sustainable growth and preserve the very attractions that make it a global tourism hotspot.
Record-Breaking Numbers for Athens and Crete
In 2025, Greece saw impressive growth in tourism, with airports bustling year-round. Early figures indicated a steady 4.8% increase in visitor numbers, followed by a further 5.9% rise later in the year. However, it was during the summer months of July through September that Greece experienced its largest spike, with 13.5 million arrivals during this peak period. This surge underscores Greece’s magnetic appeal as a summer destination.
Athens, the country’s capital, saw a notable 9.6% increase in tourism, welcoming 7 million visitors in August alone. Thessaloniki also performed well, with a 10% growth in visitors, while the Peloponnese region enjoyed an 11% rise. Crete, the largest and most visited Greek island, drew 5 million tourists, marking a 4.6% increase. The Dodecanese and Ionian Islands also showed strong performance, but the Cyclades, home to iconic Santorini, saw a 6.4% decrease in visitors. This decline was attributed to Santorini’s decision to limit the number of tourists in an effort to preserve its environment.
Strain on Island Infrastructure
While the growth in tourism is encouraging, it also comes with significant challenges. A report from the National Bank of Greece has highlighted the strain on the country’s infrastructure, especially on the islands, which account for nearly half of Greece’s foreign visitors. The rapid increase in tourists has put immense pressure on the islands’ infrastructure, which is struggling to keep up with demand. To maintain competitiveness, Greece needs to invest approximately €35 billion in infrastructure improvements over the next decade.
During peak season, islands such as Mykonos and Santorini experience overcrowding, with 33 tourists per square kilometer. In contrast, mainland Greece has just 2-3 tourists per square kilometer. The problem is exacerbated by the fact that infrastructure spending on the islands has remained stagnant for the last 20 years. Key services such as transport, waste management, water, and energy are under growing pressure. To address these issues, annual infrastructure spending would need to increase from €2 billion to €3.5 billion.
To alleviate some of the financial strain, the Greek government has been selling tourist assets, such as resorts and marinas, through its wealth fund, TAIPED. However, experts warn that this approach alone will not be sufficient. The real issue lies in inefficient governance and slow project implementation, with fragmented responsibilities and understaffed local teams causing delays in addressing infrastructure needs.
Sustainable Solutions for the Future
Despite these challenges, there are several potential solutions that could help ensure the long-term sustainability of Greece’s tourism sector. One proposed approach is to generate additional funds through the introduction of hotel taxes and cruise fees, which would be reinvested into local infrastructure. Partnerships with private stakeholders and EU funding could also help cover the necessary costs for modernization and expansion.
Reforming Greece’s national infrastructure is a critical step toward safeguarding its tourism future. Tourism is a major economic driver, contributing over €20 billion annually and accounting for about 20% of Greece’s GDP. It also supports one in five jobs in the country. However, this growth also puts immense pressure on Greece’s most popular destinations, which risk being overwhelmed if development is not carefully managed.
While the tourism industry continues to grow, Greece must find a balance between economic development and the preservation of its unique assets. Reports from the Greek Tourism Confederation (SETE) offer a hopeful outlook, highlighting trends in diversification and investment that could help alleviate some of the pressures faced by the sector. However, the need for €35 billion in infrastructure investment, along with more efficient governance, signals that more than just an increase in visitor numbers is required to ensure long-term success.
Greece’s tourism boom has led to record arrivals, but the growing strain on island infrastructure demands an urgent overhaul to sustain future growth and preserve the country’s appeal.
The Path Forward
As Greece’s tourism sector continues to boom, the country must carefully navigate its path forward. The islands, beaches, and cultural heritage that draw millions of visitors each year are at risk if the country does not invest in infrastructure and environmental protection. The growth that Greece has enjoyed in recent years could quickly turn into a double-edged sword if steps are not taken to manage it sustainably.
To capitalize on the success of its tourism industry and ensure its longevity, Greece must focus on sustainable growth, increased investment in infrastructure, and efficient governance. By doing so, Greece can continue to be a top global destination, preserving its natural beauty and cultural heritage for future generations.
