Mykonos, this season, is striving to restore its global market position as a leading luxury destination by gradually overcoming the crisis brought about by the pandemic to the island’s tourism sector.
Early tourist arrival data for this season shows that Mykonos has generated strong interest among high-income travellers. Compared to other destinations, the island has registered the smallest reduction in arrivals against pre-pandemic 2019 figures. The outlook for the rest of the season is also upbeat, presuming no sudden travel-rule changes emerge as a result of the pandemic.
Paradoxically, investment interest in new hotel units on Mykonos has risen despite the slowdown in the island’s tourism activity in 2020. Authorities have approved development plans for at least 50 new hotel units, primarily up-market projects, issuing permits to both Greek and foreign investors. Their investment plans constitute a vote of confidence for Mykonos as a destination that promises to reestablish its place at the forefront over the next few years as the tourism industry completely returns to normal.
Besides the new investments, activity is also up along the real estate front of existing holiday home lets on the island, whose developers are seeking buyers. In the first few months this year, no less than 34 classifieds advertising the sale of properties, mainly coastal, emerged in the market.
Travel activity
The crisis experienced by Mykonos in 2020 is reflected by the significant reduction of international and domestic flight arrivals, as well as cruise-ship visitors.
More specifically, according to data provided by INSETE, the Association of Greek Tourism Enterprises Institute, international tourist arrivals to Mykonos airport fell by 72 percent in 2020, compared to the previous year, down to 132,807. On a monthly basis, the strongest result was reported for August, with 63,342 tourist arrivals from abroad, down from 118,961 in the equivalent month of 2019, a year ranking as the island’s best ever in terms of international arrivals, by plane. Putting this record-breaking year into perspective, and the ascent leading to it, international tourist arrivals to the island reached 247,126 in 2014, 275,812 in 2015, 301,842 in 2016, 346,057 in 2017, 429,497 in 2018 and 474,081 in 2019.
Domestic tourist arrivals to the island were also down in 2020, plummeting 75 percent, to 63,737. In August, 2020, 17,728 tourists flew to the island on domestic flights, compared to 47,456 during the equivalent month a year earlier, a trend that once again highlights the island’s record-breaking performance in 2019. Visitors, on domestic flights, totaled 138,529 in 2014, 153,963 in 2015, 189,963 in 2016, 231,250 in 2017, 246,676 in 2018 and 254,667 in 2019. Mykonos captured a 25 percent market share of domestic-flight visitors to the Cyclades.
The upward trajectory, until 2019, in the island’s tourism activity is also reflected by the number of visitors to Mykonos’ archaeological sites, totaling 113,416 in 2016, 135,392 in 2017, 151,046 in 2018, and 172,665 in 2019. Mykonos captured a 29 percent share of visitors to the Cyclades region’s archaeological sites in 2019.
The pandemic-related setback in 2020 was also strongly felt in the cruise-ship sector. According to data provided by the Hellenic Ports Association, just 17 cruise ships reached the island last year, compared to 550 in 2019. On board the 17 cruise-ship arrivals in 2020 were a mere 914 passengers, compared to 787,490 in 2019. Between 2014 and 2019, the total number of cruise-ship passengers reaching Mykonos registered an overall increase of 29 percent, fluctuating along the way. The total number of cruise-ship passengers to Mykonos totaled 610,207 in 2014, 649,914 in 2015, 722,517 in 2016 and 702,256 in 2018.
Sector players are confident arrivals to Mykonos this year, via all transportation means, will be significantly higher than those registered in 2020, acknowledging however that, under no circumstances, will the record levels of 2019 be surpassed.
Hotels
According to most recent Hellenic Chamber of Hotels data, a total of 193 hotels possessing 6,590 rooms and 13,394 beds were registered for operation on Mykonos until December 31, 2019. Of this total, 46 belonged to the 5-star category, 54 were 4-star, 35 were 3-star, 26 were 2-star, and 32 were one-star. Of the total number of rooms, 2,463 with 5,041 beds belonged to 5-star hotels, 1,952 with 4,003 beds belonged to 4-star hotels, 1,139 with 2,292 beds belonged to 3-star hotels, 596 with 1,179 beds belonged to 2-star hotels, and 440 with 879 beds belonged to one-star hotels. Based on this data, Mykonos represents 23 percent of the overall hotel accommodation capacity in the Cyclades. In 2019, international guest bookings at Mykonos hotels reached 573,126, a record level. The number of domestic-guest bookings at Mykonos hotels reached 43,141. Overnight stays at Mykonos hotels by international travelers totaled 1,963,107, while the tally for domestic-guest overnight stays was 108,405. Moreover, the hotel occupancy rate on Mykonos reached 66 percent in 2019 from 58 percent in 2018.
Mykonos also possesses strong holiday-home room rental capacity. According to data covering up to December 31, 2019, a total of 535 such properties possessing 3,989 rooms and 9,482 beds were registered for operation. Of this total, 73 properties belonged to the 4-key category, 177 belonged to the 3-key category, 220 belonged to the 2-key category, and 65 belonged to the one-key category. Of the total number of rooms, 633 with 1,581 beds were 4-key category, 1,564 with 3,756 beds were 3-key category, 1,444 with 3,267 beds were 2-key category, and 348 with 878 beds were one-key category. Mykonos holds a 10 percent share of the Cyclades’ holiday home accommodation capacity.
In addition, up until 2018, Mykonos possessed 795 furnished holiday homes and villas with 973 rooms and 6,996 beds. Based on this data, one in four Cyclades properties of this category are based in Mykonos. Finally, up until 2019, three camping facilities with 122 huts and 135 places held operating licenses.
