INTERVIEW - Greek 2010 tourism revenues seen down 7-9 pct

ATHENS Fri May 14, 2010 5:54pm IST

Tourists take photos in front of the Parthenon temple at the Acropolis in Athens, March 18, 2010. REUTERS/John Kolesidis/Files

Tourists take photos in front of the Parthenon temple at the Acropolis in Athens, March 18, 2010.

Credit: Reuters/John Kolesidis/Files

Related Topics

ATHENS (Reuters) - Greece's tourism revenues are likely to fall 7-9 percent this year, making it even harder for the debt-choked country to pull itself out of a crisis that has rocked markets worldwide, a senior industry official said.

Tourism accounts for nearly a fifth of Greece's output and is a main driver of its 240 billion euro economy. How it fares is crucial for the recession-hit economy and its capacity to exit its debt crisis.

"We'll see a big drop in revenues because (holiday) prices are down... At the moment we expect a 7 to 9 percent drop (in revenues)," said Andreas Andreadis, head of the Hellenic Hotel Federation and Vice President of Greece's Tourism Enterprises.

Last year was already bad for the sector, with revenues down about 10 percent. Tourism receipts fell to 10.4 billion euros ($13.21 billion), pushed lower by the global financial crisis, a strong euro and competition from cheaper nearby destinations.

The industry had hoped things would slightly improve thanks to a weaker euro and signs of economic recovery in key markets such as Germany and Britain.

But bookings have been hurt by worries over repeated strikes against austerity measures and the death of three people in a bank burnt during a protest last week.

"People are afraid about violence and worried about strikes," Andreadis told Reuters in the interview, adding that bookings had slowed after the deadly protest.

He expected bookings to pick up but said that revenues will be hurt as the industry will have to cut prices further to attract late demand.

How tourism eventually fares this year will depend a lot on whether upcoming protests are peaceful and whether there are any more 24-hour flight strikes, he said.

Air traffic controllers said on Friday they would not take part in a general strike on May 20, to avoid hurting tourism and Greece's economy further.

"We are trying to reassure people," Andreadis said.

(Editing by Ian Jones)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage