In a dramatic tone, the Panhellenic Hoteliers Federation (PHF) points out in a letter to ministers Adonis Georgiadis and Kostis Hatzidakis that no crucial moves have been made even though we are only 15 days before the official opening of tourism.
This year is even more difficult for our members than 2020. The obligations are increasing and endurance no longer exists, says PHF.
The complete text of the letter
Messrs. Ministers,
We are about 15 days before the official opening of tourism and we do not see exactly how our members will be able to reopen, nor do we know under what conditions this will happen.
The liquidity of our businesses has hit red. For a year now, our only revenue has come from Substantial Repayments. In fact, most of our members did not receive any aid after the Refundable Advance Payment 4. These are amounts that were given to cover liabilities of 2020 and they have been exhausted.
The few seasonal businesses that reopened in the previous tourist season did so at a loss, and the continuously operating businesses that continue to open continue to increase their losses.
It is a given that most of our members will not be able to support themselves even by the measure of the fixed costs subsidy, as from this aid is deducted both the total of the Reimbursable Advances they have received (in terms of the repayable and non-repayable amount), as well as the interest subsidy.
Advances of course do not exist. We have already arrived in May and the reservations are zero. If the epidemiological data in our country improve, we may start operating in July, if the epidemiological data in the main countries – markets (Germany, France, Italy, Belgium, the Netherlands, Poland, USA, etc.) improve, we may start to have full coverage from August.
With what money will our companies be able to cover the very high costs required for their re-operation? How will licensed funds be able to meet the new obligations they have created, borrowed through Entrepreneurship Fund TEPIX and the Guarantee Fund to pay their fixed costs, their loan obligations, their debts to suppliers, obligations to which they could not meet turnovers?
How will seasonal businesses decide to reopen if they know they have to re-employ all their seasonal staff without professional purpose?
The announced program for the strengthening of hotel businesses in view of their reopening should have already been published. Solutions should have already been found to cover the obligations of our members to Entrepreneurship Fund TEPIX and the Guarantee Fund, obligations which can not be included in the Bridge II program.
The measure of suspension of employment contracts for seasonal staff should already have been extended to seasonal enterprises. It should have already been clarified that they will also have the right to use the COOPERATION program on the same terms as last year.
This year is even more difficult for our members than 2020. The obligations are increasing and endurance no longer exists. Of course we recognize the efforts you have made to help our businesses. However, in the year 2020 we were talking about a reduction in turnover of 78%, while today we are at absolute zero!
There are a few days left before the official opening of tourism and if you do not immediately solve the above problems many hotels, especially the small units that are the backbone of the Greek Hotel industry, will not be able to operate again.
Restarting tourism with closed hotels can not be done. Greek Tourism without Greek Hotels does not exist.
Latest News
Poll: Greeks, EU Citizens Eager to Vote in European Elections
EU citizens are eager to vote in the upcoming elections for the European Parliament in June, with eight in 10 saying the current geopolitical situation makes voting imperative
Mitsotakis-Erdogan Meeting in Ankara Fixed for May 13
The Greek PM himself made the announcement from Brussels on Thursday, while he also responded to a question on Athens' intent to create a marine park in the central Aegean, an environmental initiative
Greece Aims to Boost Energy Capacity, Economy with Offshore Wind Farms
Greece’s Energy Ministry is pushing legislation to accelerate the construction of the first floating wind farms in Greek seas
Reuters: Greek Economy Surges After Decade of Pain
Nevertheless, the article also highlights some of the challenges facing the country, with a falling birthrate and labor shortages posing a threat to the long-term outlook
IMF: Greek Growth in 2024 at 2%; Debt to Ease to 158.8% of GDP This Year
Projected consumer prices are forecast to rise by 2.7%
Major Increase in Russian Natgas Imports by Greece in 1Q 2024
Russian state natgas exporter Gazprom dominated imports to the country, mostly through the overland pipeline entering via a northern frontier pipeline
Lamda Development Announces First Profitable Year for The Ellinikon Project
The ATHEX-listed developer reported 206 million euros in EBITDA for FY23, a 69%-percent increase from 2022 results
Europa Nostra Adds Sifnos, Serifos, Folegandros to Most Endangered List
Europa Nostra says three Greek islands are at risk due to surge in tourism development and rampant construction
EU Cracks Down on Social Media Influencers Making Illegal Profits
A recent EU inquiry uncovered 358 online influencers, among them 20 in Greece, found to be violating consumer laws
Greek PM Announces €2 Billion Decarbonization Fund for Greek Islands
Greece bolstered its drive for a greener economy with the launch of a €2 Billion Decarbonization Fund for the Greek islands