TOURISM

Μost importantly, there is hope for vaccinations this year, and the pan-European digital passport is expected to open the way when implemented.

Despite the hold up at the European level, the Greek government appears determined to implement Plan B through transnational agreements to make use of progress on vaccinations to boost tourism. According to Finance Ministry officials, the consequences of freezing tourism revenues in 2021 at very low levels would be catastrophic for the economy.

The picture looks worse in the business travel industry, where bookings in 2021 are expected to be 48.8% less than in 2019, 20% less in 2022, 10% less in 2023, but also 5% less in 2024. It is clear that the impact of the pandemic on business travel will be more permanent, as many executives now commonly meet digitally with colleagues, clients and associates living in another country.

One of the bright new arrivals is the new Athens Capital Hotel - MGalery in Syntagma Square, the first of the relevant chain of the Accor group operating in Greece. The new hotel opened its doors September 1st, in an investment of 25 million euros by Lampsa SA. of the Laskaridis group. The property has been leased for a period of 30 years, following a tender held on behalf of the owner, ie the Mutual Aid Fund for former Agricultural Bank employees.

According to the Ministry of Finance, a clear and safe picture of how the pandemic has affected GDP will exist in September with the weight falling on tourism, where in the third quarter of the year the sector does 60 percent of its annual business.

Government officials believe that if the investment projects, most of which are in tourism, are launched by the end of this year then the benefits to the economy will be maximized.

After the upcoming start of preliminary construction work at Hellinikon, where the demolition of existing buildings will begin, a series of projects are taking place throughout the country, which had delayed for years and now, one after the other, will begin construction work, or have their licensing process completed.

As Minister of Tourism Harry Theoharis told, «Tourists originating from airports listed on EASA are obliged to be tested once they land in Greece and remain at a designated hotel for one day," in order for the test results to be completed. "If the test turns out negative, these visitors will then be obliged to observe a 7-day quarantine».

Sources indicate that the extreme scenario of stress tests predicts zero revenue for a hotel business for this year, while for 2021 the projected revenue is adjusted to 65 percent of income recorded in 2019. For 2022, the projected revenue is considered to amount to 85 percent. 

Based on data, especially for popular island destinations in the country, the most likely scenario for this summer is for a drop in visitors and revenues in the sector of more than 80 percent. There is a lot of concern in the tourism sector about current conditions with most hotels preferring to stay shut in June and July.