ECONOMY

Another good tourism year?

Greece expects another bumper tourist season this year, despite the strong euro, as investment in an international advertising campaign, refurbished hotels and better services pay off, officials said yesterday. Greek tourism has already recorded back-to-back growth in 2005 and 2006 and officials say this year could see more of the same despite a strong euro that makes non-EU countries and traditional rivals like Turkey and Egypt more attractive. More than 14 million tourists visited Greece last year, an increase of about 8 percent from 2005, and about 15 million are expected this year, industry and government officials said. «The indications are good for this season and there will definitely be a rise compared to last year,» said Yiannis Evangelou, president of the Hellenic Association of Travel and Tourist Agencies. He said the biggest increase, as much as 50 percent, could come from US visitors, boosted by new and more direct flights from America. Last year some 230,000 Americans visited the country, up from 160,000 in 2005. An estimated 20 percent more Russians are also expected this year over the 200,000 who came to Greece last year, Evangelou said. The government is also predicting a better year than 2006. Tourism Minister Fanni Palli-Petralia said at the ITB tourism show in Berlin yesterday that Greece is at the start of a «third wave of tourism development,» similar to that in the 1960s and 1980s, which enjoyed high growth rates. «Such growth will bring Greece into the top destinations in the global tourism chart at the end of the next decade,» she said. The minister also referred to public and private investments which constantly upgrade Greek tourism and estimated that this year private investments will exceed those of 2006. She added that in the last decade a series of projects for installations of special tourism infrastructure has been approved (conference centers, golf courses, spa centers and even a ski center). Spending pays off Spending on international ad campaigns has increased tenfold in the last four years, with more than -40 million invested since 2003 to promote the image of a modern Greece abroad. Especially in Germany, the targeted campaign, including public relations activities and participation in exhibitions, will this year exceed -5 million, Palli-Petralia said, with the tourism current expected to rise, although it is too early to make an estimate, she said. Greece is making efforts to extend the season past the traditionally popular summer months. Funds have also been invested in infrastructure and attracting more affluent tourists. «We are trying hard to shake off the mass tourism tag,» Evangelou said. With the economy set to grow an estimated 4 percent this year, among the fastest in the eurozone, Greece also expects higher investments in the tourism industry. But hoteliers and tour operators warned the government not to rest on its laurels but make continued improvements, such as renewing its aging ferry fleet, improving congested provincial airports and diversifying the tourism experience – including cruises and conferences – to attract a greater share of high-end tourists. «We must improve our product range and upgrade considerably the points of arrival,» a senior hoteliers’ association official told Reuters on condition of anonymity. «We must act now when times are good so when the tide turns we are well positioned.» (Reuters, Kathimerini)

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