Monday, July 11, 2011

Greek Tourism Rebound Needs Reforms to Last

Reuters
July 11, 2011

Tourists are flocking back to Greece's sun-drenched islands, drawn by sharply lower prices on offer for Aegean holidays, but the crisis-hit country will need tough reforms for the rebound in visitors to last.

Anxious to improve an image tarnished by news footage of bloody street protests, Greece's top earning sector must cut through the nation's endemic red tape, which scares away cruise companies and investors, and offer even better value for money.

Visitors to Greece's tranquil islands and ancient monuments account for nearly a sixth of the economy and one in five jobs, so a strong tourist sector is crucial to Athens' plan to emerge next year from its worst recession in four decades.

"We should not relax and be content with the fact that this looks like a good year ... we must focus on improving the value," said Yannis Retsos, head of the Greek hoteliers' association, adding:

"We are pushing the government to make it easier to do business, to attract new funds: if you want to build a new hotel or add a swimming pool, it should be simple."

The number of tourists flying in to enjoy Greece's sunsets, picturesque villages, archaeological sites and Mediterranean cuisine has leapt by nearly 10 percent this year after two years in which income plunged by a fifth due to the global downturn, violent anti-austerity demonstrations in Athens and strikes.

The island of Rhodes, whose mediaeval city is popular with British and Scandinavian tourists, has seen a third more visitors, with arrivals on the island of Crete up 15 percent.

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