Santorini is experiencing a significant tourism slowdown this summer as wars, economic uncertainty, and the aftermath of last year's earthquake scare appear to be keeping some visitors away from the world-famous Greek hotspot.
While the picturesque island still welcomes around three million visitors a year, local businesses say the tourist season has become increasingly challenging, with many hotels struggling to fill rooms despite overall arrival numbers remaining stable.
Mayor Highlights Unusual Situation
Nikos Zorzos, Mayor of Santorini, said the island was experiencing an unusual situation where visitor numbers appear strong on paper, but occupancy rates are falling.
"This year has its peculiarities," he said. "Geopolitical developments have, to some extent, impacted tourism more broadly. I would say tourism is seeing a downturn in Santorini this year."
He added: "While visitor numbers seem identical to two years ago - even slightly increased - we are facing a phenomenon where we don't have high occupancy rates."
Multiple Factors Blamed
Tourism leaders have blamed a combination of factors, including ongoing conflict in the Middle East, soaring travel costs, and weaker consumer spending across Europe.
Antonis Pagonis, President of the Santorini Hoteliers Association, revealed international arrivals fell by 4% in May.
"We are just before the middle of the season, and it's a season with quite a few problems," he said, according to The Greek Reporter. "We are coming off a massive ongoing war in the Middle East, which has caused energy costs to skyrocket and created major issues for transit flights between Australia and Asia."
He warned that a growing economic slowdown was also affecting holidaymakers' spending habits.
Local Businesses Feel the Impact
Local restaurateur Christos Markozanes said the impact was being felt across the island.
"The tourist season is a bit deflated this year," he said, adding that travellers are also spending less once they arrive. "The primary factor was public insecurity regarding the war, alongside the disruption of routes to our island."
The disruption to traditional flight routes through major Gulf hubs such as Dubai and Qatar has also altered the island's visitor profile, reducing arrivals from parts of Asia and the Eastern Mediterranean.
Earthquake Aftermath
Between January and March 2025, Santorini experienced a seismic swarm of over 25,000 earthquakes, triggering a massive wave of underground magma that forced its way sideways into a deep crack in the rock between the island and the underwater volcano Kolumbo. Ultimately, there was no eruption, but the earthquake crisis forced over 11,000 residents and tourists to evacuate, prompted a month-long state of emergency, and sharply dampened summer holiday bookings during the island's peak booking season.
Luxury Sector Resilient
Despite the wider slowdown, Santorini's luxury tourism sector appears to be weathering the storm. Some high-end properties are even reporting stronger demand than last year, with Giorgos Foustanakis, Director of Cresanto Luxury Suites, claiming they are "enjoying very high occupancy rates."
"We had some cancellation requests in the past, but those were eventually reversed," he said. "For us, movement and demand are actually much higher this year compared to last."
Mayor Remains Optimistic
Mayor Zorzos insisted that Santorini remains one of Europe's premier destinations despite the challenges: "Santorini can be beautifully enjoyed by any visitor this year. Whether they have deep pockets or a smaller budget, Santorini is proving to be a destination for all wallets."
