Ηigh concerns about the bookings and the arrivals of the Russian and the Ukrainian tourists are expressed by travel agencies, which are struggling to cover the losses that will arise due to the geopolitical developments. At the same time, Greece faces strong competition from both Turkey and Spain, which seek to draw tourists from the same countries, as well. “If in the previous years we had 10 pre-bookings, now we just have one. And this one pre-booking is usually made by tourists from England, who are less affected by the war,” said the president of the Panhellenic Hoteliers Federation, Mr Grigoris Tasios, during a press conference for the presentation of the “I support Horeca” Alliance.
Travel agents are particularly concerned about the impact of the travel costs rises, in the second half of 2022 – due to the surge in energy costs and commodity prices. A development that is estimated to affect and further discourage potential tourists to book holidays. It is estimated that the cost of a journey within Europe is expected to increase by around 5%-10%, while the cost of a journey from a distant destination outside Europe may increase more than 10%.
Concerns
More concerned are the hoteliers who had exclusive cooperation with tourist offices in Russia and Ukraine. In Crete alone, in 2021, tourists from Ukraine doubled compared to 2019, while, for this year, it is estimated that they would exceed 150,000. A total of 800,000 tourists are estimated to have been killed by Russians, Ukrainians and Belarusians. Road tourism is also of high concern, mainly from the large markets of Poland and Romania that are under great pressure due to an increase in the cost of living.
Greek travel agents (ECTA) have urged the creation of a strategic plan to promote European tourism in distant markets, such as the USA, Canada, Latin America, South-East Asia and China, Australia, Africa, the United Arab Emirates and India, in order to compensate for losses from the Russian market in 2022, but also to boost tourism flows from these markets and to travel to European destinations. Particular emphasis is put on catching up with the Western European and the US markets.
USA
The American market seems to have the best growth prospects, so far. This is why, since 6 March, airlines have increased the number of routes, with the prospect of reaching 14 daily services on direct flights. Many hopes are also placed on the British tourists, who show – at least so far – not to be affected by the geopolitical developments and continue to book packages in some popular destinations of Greece, such as Crete, Rhodes and Corfu.
Latest News
BoG: Private Deposits Down by 1.068bln Euros in Feb. 2024
Corporate deposits decreased by 912 million euros, compared to a decrease of 3.167 billion euros in the previous month
Greeks’ Buying Power Second Lowest in the EU
Greeks’ purchasing power is under pressure, ranking 26th among 27 EU member states.
Greek FinMin Says Digital Work Card Tackling Undeclared Work
Greece's recently launched digital work card aimed at tackling undeclared labor has already started to produce results, said Economy and Finance Minister Kostis Hatzidakis
MSC Cruises: More than 400 Visits to Nine Greek Destinations
MSC Cruises, a subsidiary of international shipping line Mediterranean Shipping Company S.A, will be sailing to Greek ports as of this month, expanding operations in the region year-round
Eurostat: Greece Among Cheaper Hourly Labor Cost Zones
In contrast, the countries that posted the highest hourly labor costs are Luxembourg (53.9 euros), Norway (51.9 euros), Iceland
GSEVEE: Economic Sentiment Indicator in Greece Down in Q2 2023
The drop follows a significant uptick in the ESI in the second half of 2022 (69.5 units) and a slight decline in the first half of 2023 (66.7 units)
Manpower Report: Sectors in Greece that Have Achieved Full Gender Equality in the Workplace
Greece surpasses this with 45%, showcasing progress but also room for improvement. Sectors like Consumer Goods and Services lead with 69% reporting full equality globally
Bank of America (BofA): Three Reasons Greek Economy Outperforms EC Average
BofA projects growth of 1.1% in 2024 and 1.7% in 2025, compared to forecasts for eurozone growth at 0.4%/1.1%, respectively
UniCredit: Greece’s Economy Set to Regain Momentum
This projection is based on the understanding that certain factors that hindered growth in the latter part of the preceding year, such as flood-related agricultural losses, abrupt adjustments in housing investments, and postponed public projects, were temporary setbacks
Council of the EU Adopts Environmental Crime Law
The law aims to improve the investigation and prosecution of environmental crime, to define new types of criminal offenses, and to harmonize penalties to individuals and legal persons