Focusing on tourism’s capacity to drive both economic growth and sustainable development, this study provides a comprehensive analysis of its critical role in the Greek economy, highlighting the potential of Greek tourism to enhance economic resilience while recognizing the need for sustainable practices to address environmental and social challenges. Drawing on empirical data, the analysis reveals that Greece’s natural beauty, cultural identity, and heritage are primary factors driving repeat visitation, reinforcing the country’s position as a premier global tourist destination. However, infrastructure constraints, seasonal dependency, and insufficient sustainable practices present key areas for improvement. Targeted investments in critical infrastructure and the adoption of sustainable tourism practices that prioritize environmental preservation are recommended as promising avenues for growth and strategic mitigation of these challenges. Overall, the findings underscore the need for an integrated approach to tourism development that balances economic gains with ecological responsibility. Such an approach not only supports Greece’s competitive positioning but also preserves the country’s cultural and natural assets for future generations. This study ultimately provides valuable insights for policymakers and stakeholders, guiding strategic investments to sustainably strengthen Greece’s tourism sector.