294 Int. J. Decision Sciences, Risk and Management, Vol. 4, Nos. 3/4, 2012 Copyright © 2012 Inderscience Enterprises Ltd. Determinants of profitability and the decision-making process of firms in the tourism sector: the case of Greece George M. Agiomirgianakis* and Anastasios I. Magoutas Hellenic Open University, 57-59 Bouboulinas Str., Patras, 26222, Greece E-mail: gmagios@eap.gr E-mail: amagoutas@eap.gr *Corresponding author George Sfakianakis Hellenic Ministry of Finance, 5-7 Nikis Str., Athens, 10180, Greece and Technological Educational Institute of Chalkis, Psachna, Evia 34400, Greece and Hellenic Open University, 57-59 Mpoumpoulinas Str., Patras, 26222, Greece E-mail: gsfak@teihal.gr Abstract: 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. Keywords: tourism; decision making; policy maker; profitability; panel data; Greece. Reference to this paper should be made as follows: Agiomirgianakis, G.M., Magoutas, A.I. and Sfakianakis, G. (2012) ‘Determinants of profitability and the decision-making process of firms in the tourism sector: the case of Greece’, Int. J. Decision Sciences, Risk and Management, Vol. 4, Nos. 3/4, pp.294–299.