This paper provides a strategic analysis of the competitiveness of Greek tourism. It illustrates the importance of tourism as an economic activity and analyses the current situation and structural problems of Greece as a destination. Although Greece offers unique nature, culture and heritage, the lack of differentiation of the tourism product as well as competitive disadvantages in marketing and planning cause an over-dependence on intermediaries for the promotion and distribution of the tourism product whilst jeopardising its quality. This affects the profitability and competitiveness of both the destination and its small and medium-sized tourism enterprises. The paper proposes a grand strategy as well as numerous strategic directions, objectives and tasks aiming to demonstrate the way ahead for Greek tourism. Several major opportunities emerge through the Olympic Games in 2004 as well as the major projects currently being undertaken which will enhance the infrastructure of the country. It is argued that a consistent tourism policy based on professional development and implemented through a Master Plan is urgently required. Strategies and methodologies need to be identified, whilst private enterprises need to increase their cooperation locally in order to enhance the quality and competitiveness of the product.