The economy of Skopelos is now fully dependent on the tourism industry which supports construction and other development related industries. Though tourism is greatest during the summer months, Skopelos is also a year round retirement destination for Northern Europeans. Some residents expected an increase in tourism due to the filming of Mamma Mia! on the island in September 2007.Agriculture, once a staple of the local economy, is in decline. Plum and almond orchards exist but are less extensive than in the past. Wine production from local grapes is minimal ever since the phylloxera blight of the 1940s destroyed the vineyards. Though there is local small scale wine production using local grapes, most wine produced on the island is for home use and much is pressed from grapes imported from Thessaly. Herding of domestic goats and domestic sheep continues and a local feta type cheese is produced from these stocks. Beekeeping and honey production have increased in recent years. Skopelos supports a small fishing fleet which fishes local waters.
The island once had a vital wooden shipbuilding industry and contributed many ships to the War of Greek Independence (1821–1831). Shipbuilding began to decline after the introduction of steamships. The Encyclopædia Britannica Eleventh Edition (1911) stated "Almost every householder in both islands (Skopelos and Skiathos) is the owner, joint owner or skipper of a sailing ship." Today the art of building ships and boats in the traditional style is virtually nonexistent and is seen only on the repairing of small wooden vessels. Skopelos can not support its population with locally produced food and goods. Most of what is used and consumed must be imported by ship from the mainland. Prices for food and consumer goods reflect the added expense of transportation. By law the Greek government collects less Value Added Tax for food and drink purchased on the islands (8% - 16%) than for similar items purchased in mainland Greece
