Greece tourism potential sparks optimism

05/07/2007

Greece expects more tourists this year, as it strives to break out of the "summer only" influx of visitors.

By Athanase Papandropoulos for Southeast European Times in Athens -- 05/07/07

Greece is planning for 16 million visitors this summer. [Getty Images]

Greek Tourism Minister Fanny Palli-Petralia was clearly optimistic when she recently spoke of increased tourism numbers expected this summer. Despite the record heat, Greece could see as many as 16 million visitors this year.

"The government is committed to an increase of tourist inflow of 20% for 2007. This objective is ambitious, but not impossible. We are certain that by intensifying our efforts, we can succeed," the minister said.

Approximately 15 millions tourists visited last summer. The number of arrivals this year is expected to increase by 7%, according to the Institute for Tourism Research and Predictions. Santorini, one of 100 Aegean islands, expects a million visitors, 20% more than last year, despite the fact that a cruise ship sank off its coast in March.

Reportedly, at least one third of arrivals this year will come from Britain and Germany, Greece's most loyal markets. But the biggest increases are expected from the United States and Russia, with arrivals set to rise by 50% and 20%, respectively, or about 1.7 million tourists. A market increase is also expected from residents of new EU member states in the Balkans, as well as from China.

"Greece is not just a popular destination, but a preferred one, which is a big difference," Palli-Petralia said.

Tourism is a major industry in Greece, accounting for one-fifth of the country's GDP, and one in five jobs. Last year, tourism registered revenue of 11 billion euros -- a record that is expected to be broken this year despite fierce competition from Mediterranean rivals like Spain, Turkey and Egypt, and newer contenders such as Croatia and Montenegro.

But memories of a tourism slump that began after the September 11th, 2001 terrorist attacks, and continued up to the 2004 Athens Olympics have not faded, so the government has taken steps to prevent a repeat.

A drive is under way to extend the traditional May-October season and bolster the country's tourism infrastructure. Experience has highlighted the necessity to develop and promote high-quality alternative forms of tourism. This serves as a way to overcome the country's dependency on the summer months, which are preferred by the majority of its visitors, despite the fact that mild weather prevails for 8-10 months of the year.

Also, the exclusive reliance on holiday package-tours has priced eurozone-member Greece out of the low end of the tourist market -- where competition from "cheaper" regional rivals in the Balkans, the Adriatic, the Aegean and the southeastern Mediterranean has intensified during the last decade. In the past couple of years, Greece has been the only one of the major eurozone tourist destinations that has not improved its turnover.

"It is inexcusable for a country like ours, with an exceptional climate, a rich culture and varied island scenery, to have a tourism period of four or five months," the tourism minister said. "Our goal is for Greece to be a year-round destination. We can achieve this by attracting high-income tourists who can afford more than a sea-sun-sights combination and we can offer that."

Palli-Petralia and other officials in the tourism industry believe that a largely untapped potential for development exists in integrated resort complexes, health tourism -- spas, beauty parlors, and rehabilitation facilities -- residential tourism, casinos and golf courses. These forms of tourism do not depend on the season, and hard currency or economic cycles have no effect on them. Experts say diversification is the key to maximising the potential of Greece's most successful industry.