Greece’s iconic island of Santorini is grappling with a staggering twenty-two percent decline in tourism revenue, marking the sharpest drop in the country, as new data reveals the island’s struggle to maintain its visitor-driven economy. In stark contrast, other Greek destinations like Corfu and Zakynthos are thriving, posting impressive growth in tourism. This sharp downturn highlights the growing concerns surrounding overtourism and the need for a more sustainable approach to tourism management in Greece, as Santorini’s revenue struggles stand in stark opposition to the success seen by other popular destinations in the nation.
Santorini, one of the most iconic islands in Greece, is facing a significant downturn in its tourism economy, raising concerns about the long-term sustainability of its visitor-driven industry. As one of the country’s top destinations, known for its stunning views, whitewashed buildings, and blue-domed churches, the island has long been a favourite for travellers worldwide. However, the latest data suggests that Santorini is struggling to maintain its economic momentum, especially when compared to other popular Greek regions. The challenges faced by the island are forcing policymakers and local businesses to re-evaluate the balance between tourism growth and environmental sustainability.
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The Decline in Santorini’s Tourism Revenue
Recent figures from the Hellenic Statistical Authority (ELSTAT) reveal troubling statistics regarding the island’s tourism performance. In the second quarter of 2025, businesses in accommodation and food services experienced a sharp decline in revenue, with losses exceeding 20% compared to the same period in 2024. This stark drop highlights the vulnerability of Santorini’s tourism sector, which has long relied heavily on a steady influx of international visitors, particularly during the peak summer months.
The decline can be attributed to several factors, including changing global travel trends, shifting tourist preferences, and economic challenges both domestically and internationally. The overall tourism experience in Santorini is being affected by overtourism, which has created a strain on infrastructure and local resources. As a result, tourists may be choosing other destinations that offer a more authentic or less crowded experience.
Regional Variations in Greece’s Tourism Performance
While Santorini is experiencing a significant downturn, other regions in Greece are showing more resilience. Nationally, the accommodation sector recorded a moderate increase in revenues, which rose to €2.97 billion in Q2 2025, reflecting a modest 2.6% growth from the €2.90 billion earned in the same period last year. However, the regional disparities in tourism growth within Greece are notable.
The island of Corfu, for example, has seen a marked improvement, with a 10.7% increase in tourism-related revenue, proving that destinations outside of Santorini are managing to attract more visitors. Similarly, Chania, a popular location on the island of Crete, saw a more modest increase of 2.7%. These figures contrast sharply with Santorini’s 22.1% decline, marking it as the destination with the largest drop in revenue in the country during this period. This decline is particularly concerning because it suggests that Santorini’s competitive edge as a tourism hub may be diminishing, and it raises the question of whether its dependence on mass tourism is sustainable in the long term.
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The Introduction of the Cruise Passenger Tax
As part of the broader effort to address overtourism and enhance the sustainability of Greece’s tourism industry, a new cruise passenger tax was introduced on July 1, 2025. This tax is expected to have a significant impact on destinations like Santorini and Mykonos, which see large numbers of cruise ship visitors each year. The aim of the tax is to reduce the environmental strain placed on the islands by mass tourism while also providing much-needed revenue for infrastructure upgrades and preservation efforts.
The new levy will apply to cruise ship passengers visiting various Greek ports, with different rates based on the season and the destination. For Santorini and Mykonos, which experience their peak tourist traffic during the summer months (June–September), the tax will be set at €20 per passenger. This is a significant fee, designed to offset the costs of managing large tourist crowds and preserving the islands’ fragile ecosystems.
For other Greek ports, the tax structure is tiered based on the time of year:
- Low season (October–May): €1 per passenger
- Shoulder season (April, May, October): €3 per passenger
- Peak season (June–September): €5 per passenger
These funds will be allocated to the improvement of local infrastructure, environmental conservation projects, and the preservation of cultural heritage. It is hoped that the tax will not only provide financial support for these initiatives but also help curb the negative effects of overtourism, including overcrowding, pollution, and the depletion of natural resources.
Local Business Concerns and the Future of Tourism in Santorini
While the introduction of the cruise passenger tax is seen as a necessary step to address sustainability issues, it has sparked concern among local businesses in Santorini. Many small businesses, especially those in the hospitality sector, are worried that the new levy will result in fewer visitors, particularly cruise passengers who make up a significant portion of the island’s tourist traffic. The prospect of reduced visitor numbers, coupled with the overall downturn in tourism revenues, is causing anxiety among Santorini’s business owners, who fear that they may face even steeper declines in the coming years.
Nevertheless, local authorities and tourism officials argue that the tax is an essential step toward balancing tourism growth with environmental preservation. The goal is not to discourage visitors but to encourage more responsible tourism, which prioritizes quality over quantity. By investing in infrastructure and sustainability efforts, policymakers hope that Santorini can continue to attract visitors without overwhelming its natural and cultural resources.
The Challenge of Sustainable Tourism in Santorini
Santorini’s tourism sector is at a crossroads, with the island facing both challenges and opportunities. The current decline in revenue highlights the risks associated with relying too heavily on mass tourism. However, it also presents an opportunity for the island to shift towards a more sustainable model that can safeguard its future as a premier travel destination.
Greece’s Santorini is facing a staggering twenty-two percent drop in tourism revenue, the sharpest decline in the country, while Corfu and Zakynthos are experiencing significant growth. This stark contrast underscores the growing challenges of managing overtourism and the need for a more sustainable approach to the island’s visitor-driven economy.
As the summer season unfolds, the impact of the new cruise tax and the effectiveness of other sustainability measures will be closely monitored. For Santorini, the key to recovery will lie in stabilizing revenues while embracing a tourism model that minimizes negative impacts on the environment and local communities. This shift will require careful planning and collaboration between government officials, business owners, and local residents. By prioritizing sustainability, Santorini can continue to offer a unique and unforgettable experience to future generations of travellers while preserving its iconic charm for years to come.
