The 2025 tourist season is starting dynamically for Crete, with Rethymno ranking among the top destinations in terms of arrivals. Early indications show increased air traffic and a positive trend in bookings. However, behind this optimistic picture lies a more complex reality: the rise in visitor numbers does not automatically translate into substantial economic benefits for local businesses, as spending remains modest and the gains are not evenly distributed across the local economy.
Numbers don’t tell the whole story
Despite the reported increases in arrivals, many hoteliers and tourism professionals in Rethymno describe the season as “low-speed.” Occupancy rates are satisfactory only during certain periods, while the majority of visitors choose short stays and limited expenses.
Shift toward budget tourism
The broader economic uncertainty in Europe and Israel has affected travel habits. Tourists tend to book at the last minute, opting for more affordable choices such as short-term rentals and small hotels rather than luxury vacations with high consumption.
Pressure on local businesses
Restaurants, cafés, tourist shops, and even local tour guides are seeing significant drops in revenue compared to previous summers. Despite the increased movement, purchasing power seems reduced, raising concerns about the viability of small family-run businesses.
The need for a new tourism strategy
Local tourism development requires a strategy focused on promoting quality experiences such as agritourism and cultural networks, with an emphasis on sustainability and diversification of the tourism product. At the same time, thematic forms of tourism must be strengthened through realistic planning, implementation, and evaluation. Cycling tourism, despite good intentions and publicity, has not delivered the expected results, while other innovative approaches, although promising, have yet to achieve the desired participation and response.
The strategy should also enhance the link between tourism and local cultural heritage, especially following the recent inclusion of major Minoan archaeological sites such as Knossos, Phaistos, Zakros, and Malia in the UNESCO World Heritage List. This development could serve as a lever for sustainable tourism promotion for the entire island.
In addition, it is important to strengthen the connection between visitors and local products and communities, thereby boosting the local economy and offering tourists an authentic experience. Finally, better coordination is needed between the region and municipalities, both in tourism promotion and in the planning and implementation of necessary infrastructure.
Rethymno and Crete remain strong and popular tourist destinations. However, the current situation calls for a new strategic approach that goes beyond simply increasing arrivals. The focus must shift toward upgrading service quality, adopting sustainable tourism practices, and most importantly, genuinely strengthening the local economy. This can only be achieved through targeted actions, cooperation with stakeholders and businesses, and integrating the tourism product with culture, local production, and the authentic character of the area.