Greek hotels are gradually reopening on a wing and a prayer, hoping for the best while being prepared for the worst.
According to the data, the sector’s funding needs come to 1.66 billion euros. So far, enterprises in this market have submitted applications for a variety of programs and funding tools adding up to over €1.57 billion, with the amount approved coming to less than half, at just €743 million. Of that, only €77 million had been disbursed by July 10, leaving hotels with an €830 million shortfall compared to what they need and another €665 million out of what has been approved.
These are the key financial findings in the latest survey by the Institute for Tourism Research and Forecasts (ITEP) on “Covid-19 and Greek Hotels,” conducted for the Hellenic Chamber of Hotels from June 30 to July 10.
The survey further found that share of hotels which have already reopened or will reopen by August amounts to 84% of the country’s capacity, while 9% have not yet decided when they will reopen and 6.4% have ruled out going back in business this year. The share of the 12-month hotels that have reopened or are about to by August comes to 90.7% and for seasonal hotels to 80.5%. The main reasons cited for not opening by several hoteliers are a lack of demand and a shortage of cash.
“Hoteliers are reopening their businesses while fully aware of the difficulties they face,” commented the Chamber. Its members are expecting turnover to decline by 67%, from €8.4 billion in 2019 to €2.8 billion this year, which means an estimated loss of €5.6 billion. Employment, meanwhile, is projected to fall 35%, from 186,574 to 120,979 workers in a year.
ITEP also found that on top of the projected losses of revenues, hoteliers have new obligations to deal with: They have already had to return €161,351,954 to tour operator, travel agents and customers, as well as having to issue vouchers worth €89,968,317. They also have pending rebates to clients reaching €143,250,937, bringing the total to €394,571,208.