Tourists wanted: Greece's economic crisis hitting tourism industry

By Georg Ismar Jun 22, 2010, 10:52 GMT

Athens - Without a solid tourism sector the Mediterranean country of Greece will be on course for yet more economic trouble. But after May's series of strikes and unrest the number of foreigners visiting the country has fallen off. Some nationalities who normally visit Greece in droves are staying away, and in response, Greece's tourism industry is offering big discounts.

A German tourists lies on a beach on the island of Samos and asks his wife to pass the sun lotion. In the background a loud booming noise can be heard coming from the green mountains in the distance where a Greek military base is located.

'They're firing our millions into the air,' says one German holidaymaker in reference to the multi-billion euro aid package Berlin has offered Athens. 'Almost 20 billion has been sent to Greece. I'm sure they'll never pay their debts back.'

The same holidaymaker is also careful to point out that it would be a big pity if Greece did not manage to get back on its feet.

But to do that more holidaymakers will have to visit the country because, along with shipping, tourism is the most important source of income Greece has. Only by boosting tourist numbers can the Catch 22 situation of rising debt and a shrinking economy be beaten.

On this sunny day the temperature is 30 degrees Celsius. However, only the Germans are enjoying the superb weather on the island which enjoys an attractive blend of hospitality, history, fine beaches and heavenly walking routes. Whether it's in Athens, on Rhodes, Patmos or here on Samos, hoteliers and cafe owners are all noticing a fall-off in foreign visitor numbers of 20 per cent.

They're hoping July and August will see a turnaround. 'There are fewer tourists who are also spending less money,' says Stelios Mihalakis, manager of Hotel Pythagorus on Samos. The island was named after the ancient Greek mathematician who was born here. Mihalakis' hotel is 60 per cent booked. He believes the recent rise in sales tax to 23 per cent has frightened off some tourists. 'We're paying for the higher tax because we cannot increase our room rates.'

Germans are the main nationality of tourists who are staying away. According to Germany's Travel Association, about 2.3 million German citizens visit Greece every year. Almost all of them - 99 per cent - head to the beaches on Greece's islands. 'There's been a fall off in bookings for Greece,' says the association's spokeswoman Sibylle Zeuch.

Greece's hoteliers believe there are several causes for the reduction in foreign visitors. Among them are the repeated strikes by air traffic controllers and ferry operators. The demonstrations of May 5 where three people were killed also played a role. 'That frightened tourists away,' says Zeuch.

Astrid and Alex used to work for the electronics company Siemens but opened the bar 'The 2 As' on the island of Symi near Rhodes in 2008. They are critical of the bad press Greece has received in many newspapers, which they think has helped devastate the country's tourist sector. 'It's created an impression that Greece is descending into chaos,' says Astrid.

In addition to bad press, Greece is also facing structural problems. Since the introduction of the euro Greece has shifted away from being a cheap destination and a budget of between 50 and 100 euros a day is what most holidaymakers have to plan for. Neighbouring Turkey is much cheaper and is attracting visitors with all-inclusive packages.

Nevertheless visitors to Greece can look forward to finding plenty of special discounts and individual travellers can also negotiate a price to suit their pockets. One major European tour operator, L'Tur, says bookings rose in May by 30 per cent thanks in large part to the discounts on offer in Greece.

Guesthouse owner Marsha Kritikos on the island of Ikaria, however, thinks the crisis can be turned into an opportunity. 'Many of the tourists who come here say they feel sorry for our situation. Perhaps that will eventually lead to a greater feeling of solidarity in Europe.' Kritikos also thinks Greece is now the firm focus of international attention which may help it combat its home-grown corruption and government waste.