Is the value of a holiday on a beach in Greece, that much more than the value of a holiday o a beach in Finland? Is the "experience" factor worth it? This depends on the type of holiday for sure - but not all are created equal.
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I am with you on that :) I'd rather invest $5k and go to a local beach.
People value things differently, and Greece beach could be more valuable to them. (A new beach to visit, favorite beach, childhood beach, miss Greece, want to visit Greece for the first time, warmer, or whatever the reason is)
I know people who would book a room at a hotel locally for the family, just to "get away". (To me it would be a waste of money)