ATHENS – One of Greece’s last, best hopes for surviving a deep economic crisis – tourism – is sinking under the weight of relentless stories of a country on the ropes, fears that it will abandon the euro for the ancient drachma, and bogged down in expectations of more strikes, protests and riots against the austerity measures that have pushed it to the edge. The Bank of Greece said on May 25 that tourism revenues – the country’s biggest money-producer – fell 15.1 percent in the first quarter of the year, especially hurt by the reluctance of German, British and Russian tourists to visit. The number of travelers visiting Greece fell 11.7 percent in the first three months of the year to 978,600.
Greek politicians have been engaged in vehement arguments with German leaders, who are the biggest supporters of the pay cuts, tax hikes and slashed pensions that have enraged Greeks. After a stalemated May 6 election which saw anti-austerity parties soaring in popularity, Greeks will go to the polls again on June 17 with international lenders putting up two bailouts of $325 billion to rescue Greece warning the monies will stop and the country could be forced out of the Eurozone if a new government tinkers with reforms.
With the elections coming at the start of the summer season, the biggest for the industry, there are worries that political and economic instability could push visitors to tourism rivals, such as Turkey and North Africa. Tourism brings in nearly $54 billion annually, about 18 percent of the country’s $301.8 billion Gross Domestic Product (GDP.) A boost in visitors last year helped shrink the deficit, that had been more than 15 percent, to 9.8 percent and the government was hoping for another increase this year. With a caretaker government in place that has no elections, and cutbacks in the tourism budget, Greece is struggling so much to attract tourists that officials have asked Greek American restaurant owners to put “Visit Greece” on their napkins and Diaspora contributors have taken out billboards in Times Square in New York and Washington, D.C.
The Bank of Greece said receipts from Russian and German visitors were down by 41 and 7.9 percent respectively, while those from British travelers – the country’s second-biggest tourism market after Germany – fell 11 percent. “The data confirms that it will be a difficult year for the tourism sector. Recession in the Eurozone and high uncertainty in Greece are having a negative impact,” said National Bank economist Nikos Magginas. “The trend will probably worsen in the second quarter, so hopes for stabilization are pushed back for after July,” he said.
The Bank of Greece said total travel receipts declined to $495.2 million, with visitors spending an average of $506.50 per trip, down 3.8 percent from the same period in 2011. Tourism receipts from European Union visitors fell 28 percent year-on-year, while revenue from non-EU travelers was down 9.5 percent. Revenue from Russian visitors fell 41 percent from the same period a year earlier.
(Sources: Reuters, Athens News, Kathimerini, Athens News Agency)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
