Greek tourism: 35 million arrivals and 20 billion euros revenues aimed for 2021

Greek Tourism Confederation (SETE)  president Andreas Andreadis outlined the industry's target for 2021: 35 million arrivals and 20 billion euros in revenues for tourism, addressing the 1st Greek Tourism Conference held in Athens by Eurobank on Thursday.

SETE's president estimated that this aim can be achieved if annual investment reaches 2 billion euros starting in 2016 with 80 percent participation of the private sector and 20 percent by the government.

As he noted, over-tax collection, the tricky sharing economy, non-performing loans, and lack of motivations are the principle topics that must be addressed if the Greek government desires tourism to keep on being the main thrust of the economy. 

During the crisis (2009 - 2013), he stressed, more tourism enterprises improved their financial position than those who deteriorated, showing the sector's resilience. But the problem is that about 40% of hotels have serious sustainability issues. Some of these companies can hardly be saved. There is a large proportion of companies pressured by non-performing loans, but can return to operational profitability if banks restructure their debt in a manner compatible with international financial standards, with the possible entry of new capital or strategic investors. It is a paradox that a country which rightly seeks the "haircut" and restructuring of its public debt, is denying the same opportunity to businesses that are the main backbone of the economy.

Mr. Andreadis made it clear that tourism can keep on filling state coffers if leaders understand the importance of encouraging development and not hampering it. Charges presented for this present year alone have really aggravated the traveler's pocket by 10% and sliced the potential for recuperation of competitiveness by 50 percent, he said. 

SETE president's outlook for 2016 was reluctantly optimistic, describing it as a “last minute year” because of the inconsistency of bookings and stressing that the positive outcome is more due to the geopolitical events in the region rather than performance. He also noted that the possible overall positive outcome of the season will not be balanced across the whole country with numerous destinations and businesses facing losses.

Mr. Andreadis alluded to the sensational decrease in domestic tourism amid the crisis, which fell from 3.2 billion euros in 2008 to 1.4 billion euros in 2014, influencing whole districts and enterprises that did not have the suitable infrastructure, product and advertising instruments, and, therefore, failed to change their tourism product. 

According to him, Eurobank's study is particularly interesting, because its projections are based on a detailed analysis of international demand data for the products of Greek tourism, their relative advantages and the necessary investments.

The Confederation's head underlined that the Greek government should aim at securing more EU funds and direct them to all tourism enterprises, small or large, in order to enhance infrastructure that will create new jobs and advance Greek tourism.

Finally, he also did not hesitate to speak of unprecedented tax measures, which will inevitably lead to the sector’s downfall if the lawmakers continue to burden the travelers and the businesses. He likewise alluded to the sharing economy, which he said cost the state 300 million euros every year and is for all intents and purposes left uncontrolled.

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