Bumper year for tourism but small players feel the pinch

Greece's small sized hotels saw a drop in bookings last month despite the jump in foreign visitor arrivals, said trade group Setke.

Setke, or the Confederation of Tourism Accommodation Entrepreneurs of Greece, blamed short term lodging services such as Airbnb for the poor performance.

"This, in combination with a collapse of the domestic market, which for many years was the basic market for rooms to rent, and the rise on all inclusive deals, has had an impact on bookings and stays recorded by businesses across the country," Setke said in a statement.

Greece's tourism industry is headed for a bumper year in 2017, with industry officials forecasting that 30 million foreign visitors will visit the country, up from 27.5 million last year.