The economy of Crete, which was mainly based on farming, began to change visibly during the 1970s. While an emphasis remains on farming and stock breeding, due to the climate and terrain of the island, there has been a drop in manufacturing and an observable expansion in its service industries (mainly tourism-related). All three sectors of the Cretan economy (agriculture, processing-packaging, services), are directly connected and interdependent. The island has a per capita income close to 100% of the Greek average, while unemployment is at approximately 4%, half of that of the country overall. As in other regions of Greece, olive growing is also a significant industry; a small amount of citrons are still cultivated on the island.

The island has three significant airports, Nikos Kazantzakis at Heraklion, Daskalogiannis airport at Chania and a smaller one in Sitia. The first two serve international routes, as the main gateways to the island for travellers.

Crete is one of the most popular holiday destinations in Greece;15% of all arrivals in Greece come through the city of Heraklion (port and airport), while charter flights to Heraklion last year made up 20% of all charter flights in Greece. Overall, more than two million tourists visited Crete last year, and this increase in tourism is reflected on the number of hotel beds, rising by 53% in the period between 1986 to 1991, when the rest of Greece saw increases of only 25%. Today, the island's tourism infrastructure caters to all tastes, including a very wide range of accommodation; the island's facilities take in large luxury hotels with their complete facilities swimming pools, sports and recreation, smaller family-owned apartments, camping facilities and others. Visitors reach the island via the two international airports or by boat to the main ports of Heraklion, Chania, Rethimno, and Aghios Nikolaos.