Greece is
in turmoil and on the precipice of financial collapse. Will it scare off
potential travelers?
The government is urging the public to
reject the terms, making it increasingly likely that the country will default
on its debt and abandon the euro in favor of its own independent currency. On
Monday, Greek officials said it would not make a 1.6 billion euro ($1.7
billion) payment to the International Monetary Fund.
Instead of photos of sandy beaches on the
islands of Paros and Mykonos or historic sites like the Acropolis, the ancient
citadel on a mountaintop in Athens and the Parthenon, the former temple
completed in 438 B.C., images of Greeks standing in line at automatic teller
machines fill the media and social networks. ATM withdrawals by Greeks are
limited to just 60 euros ($74) per day, but the government said late Sunday
that there would be no such restrictions on credit cards issued overseas. That
said, visitors there now are braced to stand in long lines at cash machines
some of which are not working, amid reports of hoarding of food and gasoline.
“The Greek tourist industry is certainly
worried but remains alert, says Xenophon Petropoulos, spokesman for the Greek
Tourism Confederation, a nonprofit industry group based in Athens. Τhe
referendum announcement is “understandably cause for concern to holidaymakers
already in Greece or those booked to visit in the coming weeks,” he adds.
“However, rest assured that the needs of these visitors have been anticipated.”
Throughout the current uncertain political and economic landscape, Petropoulos
says, a record number of international tourists have still decided to vacation
in Greece.
Whether
people stay or go matters a great deal to the Greeks. Travel and tourism
contributed around $32.7 billion to the economy overall last year (29.4 billion
euros), more than 17% of its gross domestic product, according to the World
Travel & Tourism Council, or WTTC, an international forum for the industry.
In 2014, travel and tourism directly supported 340,500 jobs, or 9.4% of total
employment. This is expected to rise by 3.8% in 2015. This includes employment
by hotels, travel agents, airlines and other passenger transportation services
(excluding commuter services).
It would take a lot more than a financial
crisis to put off tourists, says Christopher Elliott, a consumer travel
consultant. “The last time there was a Greek crisis the consensus was that this
wouldn’t affect tourism,” he says. It did appear to have an impact, however.
Greek travel and tourism directly contributed 5.8% less to GDP in 2011, a summer
of riots on the streets of Athens protesting government austerity measures,
after a 3.1% increase in 2010, followed by another 6.5% decrease in 2012,
according to WTTC. Even if there were more riots, “a few brave bargain-hunters
would go, just to save a few bucks,” Elliott says.
While it’s too early to tell whether a Greek
exit, or “Grexit,” from the eurozone - the 19 European Union member states that
use the common currency of the euro - will impact tourism numbers,
international visitors are already up on last year, according to the
Association of Greek Tourism Enterprises, a nonprofit group that represents
tourism unions in Greece. In the first quarter of 2015, there were more than
810,000 international arrivals in Greece, up by nearly 30% on last year, with
international arrivals up by over 29% in Athens and by more than 22% in
Thessaloniki, the country’s second-largest city.
Most international tourists keep an eye on
the exchange rate, which has thus far been favorable to American tourists, Elliott
says. The euro-dollar exchange rate has fallen from $1.36 in June 2014 to $1.12
currently, due to the European crisis. And while Greece leaving the euro may
lead to political unrest and devaluation there, economists also foresee an
official reduction in the value of the currency in relation to gold or other
currencies. “Devaluation will make Greece a more attractive destination to
travel to, once stability has returned,” according to the U.K.-based World
Travel & Tourism Council.
The Greek tourism industry is nevertheless
braced for tourism cancellations and a period of uncertainty. “If Greece were
to exit the Eurozone it would nevertheless experience a shock to its economy
and its tourism industry due to the instability and uncertainty the country would
face whilst in transition from the one currency to the other,” the WTTC adds.
In that event, prices would fall, says Ed Perkins, a contributing editor at the
travel site SmarterTravel.com. “If demand falls off, hotels, restaurants, and
tour operators will offer incentives.” Though, he adds, tax increases across
Greece may also make that harder.
Πηγή: marketwatch.com
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