The luxury and Middle Eastern markets are two of the key opportunities for the hospitality industry in an increasingly uncertain world.
Speaking at the 2025 R&R Hospitality Forum in Greece, Alpha Bank general manager wholesale banking Yannis Emiris said Greece has been deliberately focusing on attracting higher end tourists who are less vulnerable to global issues.
This has lead to increased investment in the high-end sectors of hotel accommodation while also increasing demand for quality residential developments.
Emiris added this demand for luxury accommodation is coming from the Middle Eastern markets which are also keen on serviced apartments, particularly if they are backed by a renowned brand.
He said: “This is something that is a hedge towards international uncertainty as high-end travellers are a bit more immune to geopolitical uncertainty.”
However, he added that the needs of the market are changing, with hotel operators increasingly focusing on ensuring their customers are allowed a full digital detox once in resort.
Wickett Advisory owner Xenia Wickett agreed that the luxury market is traditionally more resilient but warned that with current global unrest and growing populism, it can cause its own problems.
She added: “The gap between the luxury and mass markets is broadening and it is shaping political polarisation, populism and unrest in many of our societies.”
Middle Eastern promise
But Wickett was in full agreement that the Middle East remains key to global tourism thanks to its skilful handling of relationships with the world’s two key superpowers, the US and China, despite their ongoing mutual antipathy.
She said: “I’m bullish about the Middle East and many countries in the Middle East are managing to balance between the US and China and at least in the short to medium term they will be able to do that.
“There is Middle East investment into the US and China and they are also getting residential investment and tourism into the region.”
Wickett added the region is also becoming increasingly friendly to western travellers with countries like Saudi Arabia increasingly opening up to them.
However, she said the region is likely to feel the force of global warming and everything must be done not just to address the issue, but also to show they are doing something about it.
Wickett said: “They are being focused in that direction by extreme weather events and that will be a real challenge in the Middle East.”
A Greek welcome
Emiris added while the Middle East is largely a safe environment, the recent war between Gaza and Israel and military action against Iran by Israel has created a sense of unease with investors.
He said: “Greece has been benefitting from that instability in the Middle East and Ukraine as it has created opportunities where people are seeking to acquire properties in a safe haven.
Emiris added Greece is now a an attractive proposition for investment as it is one of only six EU countries to be enjoying a primary surplus thanks to its economic rebuild following its 2009 financial crash.
While he admitted that staff shortages in both construction and hospitality are driving up costs, he added: “Greece has earned its position as a good investment after years of crisis.”
Future shocks
Wickett said despite the opportunities available to hospitality investors, they come during a period of increasing global tension with the Ukrainian war and ongoing Gaza-Israel tensions being at the heart of them.
“They change the perception of risk, they change insurance markets and they change energy costs,” she added.
Nor is this the only area of global concern, Wickett added as she also highlighted the ongoing rivalry between the US and China as they jostle for superpower supremacy.
While recent talks between presidents Trump and Xi might have seemingly calmed the situation, especially after the tariff war, Wickett warned that this could change in a flash, adding: “Fundamentally they see one another as challenging, even as the rhetoric goes down.”
However, she noted the world is already reacting to the upheaval with countries becoming regionally focused as opposed to taking advantage of the opportunities offered by globalisation.
“We are going as we did during Covid, away from efficiency and into security, stability and resilience,” she said.
The other problem Wickett identified impacting businesses today is the erosion of trust among consumers when it comes to dealing with the authorities and institutions.
She said: “Trust is declining; the good news for you in the private sector is that relatively speaking trust in businesses is higher than trust in governments.
“Expectations for businesses are rising from your staff and civil society; they’re expecting businesses to take more responsibility not less in a world where governments aren’t delivering.”
However, Wickett argued that businesses should view this as a positive as customers are becoming increasingly loyal to the brands that they trust.
And Emiris was also positive about the future despite ongoing issues largely thanks to the relatively benign economic situation apparent in both Greece and Europe.
He said: “Across the whole continent in last few years liquidity has returned in banking sector, interest rates have decreased a lot and this translates into benefits to borrowers from the banks.
“In general, irrespective of an increase or decrease of interest rates, there is liquidity available here for good projects run by well capitalised, good operators with experience.”