Greek Tourism – A Crucial Year

GREEK TOURISM 2009 – THE CRUCIAL YEAR

As the true depth of the world economic crisis unfolds, Greeks await the summer season with trepidation, praying that the number of visiting tourists does not plummet. A fall in numbers is expected but, for a country that relies upon holidaymakers, the scale of the drop will have serious repercussions for the wider Greek economy.

At the moment, the Greek economy is just about stable, and the country has not seen the mass bailouts and property slumps afflicting the US, UK and Spain. A poor summer could be the final tipping point that sends the economy into a serious downward spiral.

At the moment, early bookings are down, although it is unclear whether this is the start of a worrying decline or a sign that people are trying to play the market and wait for the last-minute bargains. Moody’s is pessimistic about the outlook, and it has used a predicted slump in Greek tourism as part of the reasoning behind downgrading the forecast for the Greek economy.

On the other hand, there is evidence that the British, at least, intend to travel abroad, believing that a foreign holiday as a necessity rather than a luxury. Greece is still the most popular mid-haul destination, so there is a small glimmer of hope. Despite the fall in the value of the Sterling, workers in the United Kingdom still want a yearly dose of summer sun and sea. Whether this glimmer be enough to counteract the worst effects is unknown, and the true picture will begin to unfold over the next month or so.

It is practically impossible to predict the summer season for the Greek economy, or make any accurate projections for the year. There is some optimism, fuelled by press releases and a concerted campaign from the Greek Tourism Board. In reality, the country carries an air of pessimism, in common with a world faced by a growing and increasingly virulent economic crisis.

Photo courtesy of Vangelis Thomaidis: forwardcom@gmail.com