It is no exaggeration to say that in tourism, even those who know little about Greece are aware of Mykonos. However, Mykonos currently seems to be losing its allure from the past. This is first evident in the prices of the ultra-luxurious accommodations on the island.
The Island of Winds has it all: a cosmopolitan atmosphere, emerald beaches, vibrant nightlife, luxury, high-quality services, celebrities strolling along Matogianni street, and luxury villas. Yet, it also carries a negative reputation that has been growing in recent seasons, stemming from astronomical bills amounting to thousands of euros at restaurants and beach bars, lawlessness, abuses, and encroachments, with an increasing number of people openly speaking about organized crime networks on the island.
According to a report by Forbes, Mykonos is currently facing a decline in its former splendor. Luxury accommodation prices are falling, with reductions ranging from 20% to as much as 40% compared to last year.
Many luxury hotels that were built in recent years, as noted by hotel industry entrepreneurs familiar with the Mykonian market, are being forced to drastically lower their prices; otherwise, they risk remaining empty this year. Wealthy visitors from the United Arab Emirates, Saudi Arabia, and the United States are no longer frequenting the island, while even those who can afford to spend lavishly on their vacations find Mykonos’s prices exorbitant for the quality of the offerings, which, while high, can also be found in other destinations at lower prices.
So what is happening this year in Mykonos, which is facing a significant reduction in high-income visitors and a decline in consumption, especially in expensive restaurants? Many refer to it as a "correction" in the market, given the uncontrolled building over the past few years. Others are more pessimistic, describing it as a "response" to the vanity and excesses of entrepreneurs. However, most agree that Mykonos's comeback will be challenging. In contrast to the Greek tourism sector, which is expected to set another record in revenues this year (potentially surpassing €22 billion, up from €20.5 billion in 2022) and in arrivals, other destinations like Rhodes are overflowing with tourists despite last year’s wildfires.
The Start of the Decline
Last year, something unexpected happened for Greece's flagship tourism destination. International passenger traffic at Mykonos Airport started showing negative numbers as early as the first month of the tourist season, a reduction that persisted throughout the tourism period.
This followed an attack in mid-March on the archaeologist Manolis Psarros from the Cyclades Antiquities Service, who had testified in at least two criminal cases involving two seaside dining establishments with revenues in the millions. The attack seemed related to the Archaeological Service's decisions to block the construction of buildings in certain areas of the island. "There is a regime in Mykonos that operates under its own rules,” he noted in an interview.
At the beginning of May, the famous beach bar Principote was shuttered, having previously been slapped with a hefty fine of €33 million for illegal and unauthorized constructions. A few weeks later, the demolition of parts of the illegal constructions at Nammos in Psarrou began.
These incidents may not have gained as much attention if the island had not started acquiring a negative reputation due to the exorbitant prices at restaurants and beach bars, villas costing thousands of euros per night, and “golden” beach loungers at popular beaches.
The Guardian reported extensively that "for years, Mykonos has been an international leader as a 'playground' for the rich – its bars, restaurants, and beaches generating ever-growing substantial profits. However, the violent attack on Manolis Psarros also revealed a darker side: an island taken over by interests that have come to see its shores as a twilight zone beyond the reach of central government and the long arm of the law.”
Moreover, in 2019, the famous model Gigi Hadid, with millions of followers on social media, declared she had no intention of returning to Mykonos after being a victim of theft during her vacation there.
The Plunge in International Arrivals
According to data from the Hellenic Civil Aviation Authority, there was a 5.2% drop in overall arrivals for Mykonos in 2023 (with 546,000 international arrivals, a decrease of 30,000), with summer months seeing a decline of approximately 5%.
To appreciate the reversal of fortune, it's enough to note that between January and December 2022, compared to 2019, Mykonos Airport recorded 576,000 passengers, an increase of 102,000 (+21.6%). In 2022, compared to 2021, the increase had skyrocketed to 60%.
The decline continues this year. Data analyzed by the SETE Institute shows a 7% average reduction in international traffic from March to May. At the same time, according to data from the travel data measurement company OAG, scheduled seats for incoming international flights are down by 7% compared to the summer season of 2023. From 692,000 seats available in 2023, this year there are only 644,000 available for Mykonos Airport, with reductions continuing into July, August, and September.
Visibly, there is a drop from significant foreign markets for the island's tourism, namely the UK, Qatar, and Bahrain. Wealthy tourists no longer coming to Mykonos are choosing similar luxury destinations, as hoteliers on the island note, such as Sardinia, Croatia, and Turkey, offering the same sea at one-third the price of Mykonos.
Furthermore, seeking to escape the excess and appearances, visitors with substantial means are increasingly looking for privacy, fewer crowds, and relaxation.
Changing Visitor Demographics
Hoteliers in Mykonos are observing a shift in the mix of visitors. They note that there are now many visitors from cruise ships who stay on the island for just a few hours, without contributing to tourism revenues. In July and August, the cruise terminal may see as many as eight cruise ships, with disembarking passengers creating a crowded atmosphere on the island. During peak tourist periods, there are around 4,500 vans operating.
There are also tourists who come to Mykonos for just a few hours, swim, eat, and then continue their holidays on other Cycladic islands such as Paros, Tinos, Naxos, and Syros. Day visitors are becoming increasingly common in Mykonos, leading to a drop in consumption. It is also characteristic that during evening strolls in the alleys, the longest lines form outside fast food outlets.
The situation worsens on the island's roads, where thousands of vans handle transfers. Traffic to and from the island's airport is remarkable, with the journey to the town sometimes taking up to an hour during peak months.
A Surge in Urban Planning Violations
Recently, the Ministry of Environment and Energy announced demolition and compliance procedures for those violating urban planning regulations on Mykonos, following inspections carried out by the State.
According to the announcement, in a bid to uphold urban planning legality, respect for the natural and urban environment, and the public's right to access the coasts, Building and Demolition Inspectors have visited the island five times since last April (specifically on 3/4/2023, 10/4/2023, 14/7/2023, 21/12/2023, and 1/4/2024). They conducted intensive inspections for identifying illegal construction in 13 businesses and one private project, monitoring the demolition and compliance processes.
Among the businesses are Principote, Pasazi, Alemagou, Superparadise, Solymar, Santana, Scorpios, and Nammos.
However, it is not only the violations that tarnish the beautiful island of Mykonos. Videos posted on social media showed raw sewage leaking into the sea just before the official start of the tourist season. The sewers in Ornos overflowed, spilling waste onto the streets. This is not the first time Mykonos has faced this particular issue, as a similar incident occurred last summer in the island's capital, with untreated urban waste ending up in the chairs and tables of businesses.
Source: forbesgreece.gr