The pilot study in Corfu constituted the third stage of the evaluation of the Methodological Framework of the Coastal and Marine Tourism Observatory, with a focus on cruise tourism. The study was conducted from May to June 2026 and combined qualitative and quantitative tools: semi-structured interviews (IDIs) with 11 key informants, two thematic focus groups (Economic Dimension & Governance and Environmental, Social/Cultural Dimension & Governance), a quantitative business survey, as well as extensive secondary analysis of existing data (Corfu Port Authority – OLKE, Corfu Chamber of Commerce). The study had a dual purpose: (a) to evaluate the suitability and applicability of the methodological framework for the cruise tourism sector, and (b) to provide a comprehensive assessment of the value chain and the economic, social, and environmental footprint of cruise tourism in Corfu.
Part A: Evaluation of the Methodological Framework
1. Prioritization of Dimensions and Subsections
Participants in the consultation identified governance as the most critical dimension, describing it as “the field from which everything else derives.” The lack of coordination among OLKE, the Municipality, the Region, the Port Authority, and the Ministries was cited as the main obstacle to any form of sustainable management. This was followed by the social/cultural dimension (with emphasis on safety and quality of life) and the environmental dimension, while the economic dimension was considered fundamental but not an end in itself due to the unequal distribution of benefits.
Within the economic dimension, participants ranked local value added and employment first (“the key issue is what remains in the local economy”), investments in sustainable infrastructure second, and tourism flows third, thereby reversing the priority assigned during the national consultation. The most important flow indicators identified were the number of disembarking passengers, the average duration of stay ashore, and tourism pressure with spatial specialization at hotspots (e.g., the Old Town). Participants strongly advocated replacing the “permanent population” variable with “real peak population,” which would include permanent residents, seasonal workers, and visitors.
Within the social/cultural dimension, safety and public health ranked first, with participants (police, port authority, and citizens’ associations) proposing indicators such as the number of road traffic accidents, the number of police personnel, and the number of healthcare staff/beds per 1,000 people of the real peak population. Social acceptance and quality of life followed, with strong complaints regarding the occupation of public spaces by outdoor seating and overtourism in the historic center.
Within the environmental dimension, participants identified waste and pollution management (due to the potential discharge of wastewater from ships and the absence of cold ironing facilities) and natural resource management (water and energy) as the highest priorities. Coastal erosion was proposed as a new mandatory indicator, while the excess consumption method (comparison of a peak month with a baseline month) was recommended for measuring water and energy consumption per cruise passenger.
2. Methodological Recommendations and Proposed Indicators
The consultation process resulted in specific changes to the methodological framework:
• Modification of definitions: For marine tourism, a clear categorization was proposed, including cruise tourism, yachting, diving tourism, fishing tourism, and marine recreation, with a distinction between ticketed day-excursion vessels (coastal shipping) and charter vessels.
• Addition of new indicators: Real peak population, revenue redistribution indicator (percentage of cruise-related revenues returning to the local community), average employee age, noise pollution, number of road traffic accidents per 10,000 people, travel time from the port to a hotspot, and quantities of liquid/solid waste received.
• Data collection frequency: Monthly/weekly collection was considered realistic for visitor flows and employment, monthly for revenues and waste management, and annual for investments, institutional framework indicators, and ecosystem indicators. Safety and public health require monthly monitoring.
• Stakeholders that should participate: Participants proposed the institutionalization of mandatory data provision by OLKE, Fraport, AADE (myDATA), ERGANI, the Port Authority, PPC, local water utilities, and the use of satellite data (EMSA, MarineTraffic) for environmental monitoring.
• Organizational recommendations: The most important conclusion emerging from all consultations was the need to establish a Destination Management Organization (DMO) in Corfu, which would coordinate the Municipality, the Region, OLKE, the Chamber of Commerce, and professional associations, while managing a Local Cruise Fund with transparent revenue allocation. Without effective governance, data collection was considered “an exercise without practical value.”
Part B: Cruise Tourism Value Chain and Impact in Corfu
1. Economic Impact – Quantitative Findings
The value chain analysis, based on extensive consultation with stakeholders, OLKE data (474 ship calls, 908,800 passengers, 324,507 crew members in 2025), passenger surveys (OLKE survey 2025, n=2,840), comparable studies from other ports, and economic data from Chamber of Commerce studies, concluded that cruise tourism contributes directly €92.2 million to the local economy. The distribution is as follows:
• Passenger expenditure in the city: €27.3 million (29.6%) – primarily on souvenirs (5.4%), local products (6.5%), food and beverages (4.4%), and transportation (5.5%).
• Home porting (passengers starting/ending their journey in Corfu, 10.8% of the total): €10.8 million (11.7%), of which €8.8 million is spent on accommodation and €2.0 million on other expenses.
• Local excursion expenditure: €20.3 million (22.1%) – representing the amount retained in Corfu from excursions (the remaining 63% of the excursion price sold onboard leaks to the cruise company, creating a leakage of €6.4 million).
• Secondary expenditure during excursions (souvenirs, food, transportation): €6.5 million (7.1%).
• Crew expenditure: €9.6 million (10.4%).
• OLKE revenues (berthing fees, passenger fees, ISPS charges, waste management): €8.2 million (8.9%).
• Maritime service revenues (towing, agency services, anti-pollution services, mooring operations): €9.4 million (10.2%).
• Ship provisioning: only €20,000 (0.0%) – an extremely low performance compared to the potential market.
2. Value Chain Structure and Leakages
The largest leakage (€6.4 million annually) was identified in excursions sold onboard cruise ships. Ship provisioning has the potential to increase significantly, while home porting loses approximately €1 million through Online Travel Agency commissions. Overall, 13% of the gross value (€11.8 million) leaks outside Corfu. The local sectors benefiting the most are retail trade (NACE 47), food and beverage services (56), transportation (49), accommodation (55), and travel agencies (79), all of which recorded a turnover increase of 66.5% during the period 2022–2025.
3. Social and Environmental Impact
The focus groups revealed strong concerns regarding overtourism. On peak days (Wednesday and Friday), the Old Town receives up to 200 buses and more than 30,000 rental vehicles, resulting in traffic paralysis and the loss of public space for residents. Sixty percent of participants in the second focus group (police, port authority, and associations) estimated that the social and environmental costs outweigh the revenues, contrary to the opinion expressed by economic stakeholders. The urban operation plan for the Old Town has remained unimplemented for eight years due to a lack of political will.
From an environmental perspective, the absence of cold ironing (shore-side power supply) forces ships to keep their engines running, increasing air pollution. Unregulated anchoring of vessels in Garitsa Bay is damaging Posidonia seagrass meadows. Solid waste generated per ship ranges from 30 to 50 cubic meters, and the contract for the reception of liquid waste was signed only recently, after a delay of 15 years.
4. Strategic Recommendations for Increasing Local Value Added
Based on the findings, the research team developed five groups of interventions:
- Recovery of leakages from excursions: Establishment of a Local Excursions Coordination Office to reduce cruise company commissions from 63% to ≤40%, with an estimated benefit of €3.8 million annually.
- Development of local ship provisioning: Establishment of a Supply Cluster with “Corfu Supply Standard” certification, aiming to increase revenues from €20,000 to €2 million.
- Expansion of home porting: “Corfu Stay & Cruise” packages to increase home porting from 10.8% to 15%, generating an additional benefit of €4.2 million.
- Improvement of the visitor experience in the city: Introduction of a Corfu Cruise Pass (€15 card for museums and discounts), upgrading shuttle services, cleanliness, and digital information systems, with the aim of increasing average expenditure from €36.48 to €50 per person (+€11.2 million).
- Institutionalization of a Cruise Observatory: Integration of monitoring activities into the Chamber of Commerce Local Economy Observatory, with an annual report and indicators on revenue redistribution and carrying capacity.
5. Overall Conclusion
The pilot study in Corfu confirmed that cruise tourism constitutes a dynamic economic driver (€92 million direct impact). However, the current operating model can be improved to achieve a better distribution of benefits, reduce value leakages and social/environmental pressures, and—most importantly—establish coordinated governance. Without the creation of a functional DMO and the implementation of specific value-recovery policies, Corfu risks losing its sustainability as a destination. The Observatory’s methodological framework was considered appropriate, but its implementation requires institutional backing, mandatory data provision, and continuous collaboration with local stakeholders.