Warning from exports, tourism
Exporters and tourism professionals are warning that the seemingly endless negotiations between the SYRIZA-led government and Athens’s creditors are, among other things, taking a toll on Greek exports and tourism, two of the country’s biggest foreign currency suppliers.
The Panhellenic Exporters Association warned on Tuesday of the risk of the benefits from the increase in exports evaporating as long as the country fails to reach an agreement with its creditors that would release liquidity in the market, and the sector is on its last legs in terms of cash flow.
Besides domestic banks’ particularly tight credit policy regarding corporate financing, exporting companies also have to deal with the state’s inconsistency. Outstanding value-added tax rebates to companies amount to 692 million euros, most of which concerns exporters.
Similarly, the prolonged uncertainty hanging over the country’s economy has taken the annual comparison of tourism arrivals at some of Greece’s main destinations such as Crete and Rhodes during the first five months of the year from positive to negative territory. It is only thanks to the major tourism growth in the Greek capital that the sum of arrivals remains in the green this year, according to data released by the Association of Hellenic Tourism Enterprises (SETE).
While Athens International Airport enjoyed a 25.9 percent rise in arrivals in the year to end-May compared with last year, thanks to a major increase in scheduled and charter flights, Iraklio suffered an unexpected 3.6 percent annual decline in arrivals while Rhodes recorded a 2.8 percent yearly drop. In May, total arrivals increased 6 percent year-on-year, due to the 22.9 percent rise in incoming traffic to Athens.
Commenting on the data, SETE stated that it “remains reserved for the entire year” and that it is only through a positive outcome in Greece’s talks with creditors and the maintenance of VAT on food serving and accommodation at its current level that tourism can meet the targets set for this year.
