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)

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

  • Most Popular
  • Most Shared

Market Eye


Bullish on Equities

Bullish on Equities

Bullish on Indian equities, but gains seen 'less sharp'- Goldman Sachs  Full Article 

Streamlining Operations

Jet Streamlines

Jet Airways chairman says looking to restructure debts, talking to bankers  Full Article 

Political Economy

Political Economy

Analysis - Watch what markets don't do as world politics turns nasty   Full Article 


Honda's India Thrust

Honda's India unit to account for 25 pct of Asia Pacific sales by March 2017 - exec   Full Article 

Short of Expectations

Short of Expectations

Apple revenue lags Street's view despite strong China growth  Full Article 

Mircosoft Results

Microsoft Results

Microsoft revenue rises, profit falls as Nokia absorbed  Full Article 

Relief For Sahara

Relief For Sahara

Supreme Court could allow Sahara boss to conduct asset sale talks, company says.  Full Article 


Food Scandal

Five held in China food scandal probe, including head of Shanghai Husi Food   Full Article 

Reuters India Mobile

Reuters India Mobile

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