Upgrading the tourism sector
Greece’s new tourist promotional campaign is an inspiring departure from previous efforts. The government this year will spend some 60 million euros on advertising, up from the 10 million spent last year, which coincided with the Summer Olympic Games in Athens. The huge funding increase underscores Greece’s renewed efforts to burnish its image as a year-round tourism destination. The aim is to restore and expand Greece’s share in a growing and ever more competitive market, as new countries and destinations with modern infrastructure and lower prices claim their share of the tourism market. Without doubt, the advertising campaign is a welcome and essential initiative. But it is far from enough. In order to arrest the decline in tourism revenue of the past four years, the government must take other measures that will make the tourism sector competitive again; for it no longer is. In the past, Greece’s relatively lower cost of living coupled with unrivaled natural beauty were enough to make tourists ignore the mediocre or, in some cases, unacceptable level of services. The problem has been exacerbated in recent years by burgeoning inflation, which has made many products and services more expensive than those offered in rival destinations such as France or Germany; the introduction of the euro has been another culprit, which has also made it possible for prospective visitors to directly compare prices. Overpriced but poor services are hardly the recipe for a tourism success story. Greece’s tourism sector is in decline primarily because of structural flaws. There is little charm left in the wretched, expensive would-be hotels or in the many dirty and outrageously expensive tavernas with their vile food. This rapacious mentality gives Greece a bad name and discourages its victims and their friends from visiting the country at another time. Similarly, it’s hard to see why the Athens airport is Europe’s most expensive. And, finally, how can we expect to exploit the abundance of archeological sites and treasures when our museums close at 3 p.m.? Spending money on promotional campaigns is a welcome move. But it will go nowhere unless we narrow the cost/service gap which is rapidly undermining the appeal of Greece’s tourist products.
