ECONOMY

Local tourists set to save industry as foreign bookings stagnate

Local tourists will be the lifesavers for the hotel industry this year as, according to latest booking statistics, the incoming tourism traffic in the best-case scenario is expected to remain at last year’s level, which was 12.5 million tourists. Despite the optimism at the Development Ministry which sees foreign bookings returning to normal levels, the tourist industry appears problematic. This is because a large number of hotels have cut rates already agreed upon and much earlier in the season after coming under pressure from foreign tourist organizations. While the move has boosted bookings, it will impact on their revenues. In addition, in a number of tourist areas, hotels have chosen to open for business much later this year compared with other years. It should be noted that the biggest problem is in the German market. Within this framework, organized groups within the Hoteliers’ Association or independent hotels and tourist offices are offering package deals with discounts up to 30 percent for domestic tourists. Offers to specific destinations are related to the Easter celebration and extends to the end of June. Local tourists have showed preferences for Crete, Chios, Santorini, Patmos and Patras. This year has also seen passenger shipping companies making a dynamic entrance into the package holiday market with attractive prices. However, there are dangers in package deals and holidaymakers should be especially careful in order to avoid unpleasant surprises. Yiannis Evangelou, head of the Hellenic Association of Travel and Tourist Agencies (HATTA), told Kathimerini that tourist agents function as travel advisers. However, there are illegal agents who do not have HATTA’s badge and who do not guarantee their package services. Asked whether a drastic «Americanization» of Europe with a complete liberalization of markets and market flexibility would pose risks of social unrest, such as the recent general strike in Italy against similar measures by the Berlusconi government, he said:

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