Determinants of profitability and the decision-making process of firms in the tourism sector: the case of Greece

This paper aims at investigating the determinants of profitability in the tourism sector of Greece. As tourism is one of the main industries in Greece, with a share in total economic activity varying from 15% to 20% of GDP (whether measured directly or indirectly respectively), both the theoretical and practical implications of pinpointing the determinants of profitability are significant: first, at the microeconomic level, these determinants are interwoven with the decision-making process of firms; and secondly, at the macroeconomic level, these determinants should be taken into account when policy makers try to formulate appropriate policies that could support or stimulate investment activity in the tourism sector.