Foreign Travel Agencies Add Greek Default Clause in Contracts

Fears that Greece’s negotiation with its creditors will not be fruitful have impacted the country’s political and economic sector, but also tourism.

Foreign travel agencies have already demanded Greek hoteliers to sign a Greek default clause. Specifically, organizers of international conferences have decided to introduce a bankruptcy clause in their contracts with Greek hoteliers, imposing a non-payment of compensation in case Greece declares bankruptcy and they decide to cancel the organized events, noted the Greek newspaper Kathimerini.

This clause is reminiscent of insurance terms which do not cover exceptional occurrences such as natural disasters or terrorist attacks. According to the newspaper, already one conference organizer who was supposed to hold an international event in Greece in June, has imposed a default clause to the hotel that will host the event.

Meanwhile, Greek hoteliers will be called to sign next season’s contracts in a few weeks. Most of them are wondering what fiscal changes the Greek government will implement and to what extent they can impose price increases to the foreign travel agencies as a result of the VAT changes.

Furthermore, they are concerned about keeping the prices relatively low in order to be competitive with other Mediterranean countries such as Spain or Turkey.