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Greek tourism up 10 percent - 16 November 2006

Tourist arrivals to Greece are expected to rise by 8-10 percent by the end of 2006, reports the Athens News Agency...

This week Stavros Andreadis, President of the Association of Hellenic Tourism Enterprises, said that tourist arrivals to Greece are predicted to increase by 8-10 percent in 2006 with revenues also up 10 percent on 2005, reports the Athens News Agency (ANA).

Greece is already a very popular international tourist destination, especially with West Europeans.  But now increasing numbers of Eastern European holiday makers are also flocking to Greece for their summer vacations.  Year-on-year, tourist arrivals from Russia and Ukraine to central Macedonia grew by 16 percent and 100 percent respectively between January and October this year, reports ANA.  After a steady decline between 2003 and 2005, the Association of Thessaloniki Hoteliers has reported a rebound in room occupancy rates in the first half of 2006 when the average occupancy rate reached 54 percent in the city of Thessaloniki.

However, Andreadis emphasised that the Greek tourist industry should not be complacent.  Speaking at a news conference during the 22nd Philoxenia Tourism Fair in Thessaloniki, he said, "I fear this feeling of happy inactivity," continuing that Greece "sells as an idea and we must build on this by strengthening the country's tourism profile with 'high added value products'".

Greece looking to become an all-year-round destination

Although Greece is inundated with holiday makers during the summer months, at present, in winter tourist levels are low.  The industry is now looking to redress this, adding new itineries and boosting investment to make Greece an all-year-round tourist destination.

Speaking at the World Travel Market in London, Tourism Minister Fani Palli-Petralia said, "Procedures for private investment need to be eased, and we have to solve all the bureaucratic problems more rapidly."  Palli-Petralia said that domestic and foreign investment in the Greek tourist sector has totaled 917 million euros (1,179 million U.S. dollars) since April 2005.  She added that a significant proportion of Greece's EU funds for 2007-2013 would be used to promote the country's travel, tourism, and leisure sectors.

Andreas Andreadis, President of the National Association of Hoteliers, said that 40-50 percent of new investments in Greece covered hotel projects, reports ANA.  Andreadis said it was not only important to construct new five-star hotels but also to upgrade the existing 7,000 hotel units around the country.  He said the Association was developing a cooperation with large Internet tour operators and noted that Expedia's turnover from Greek hotels was expected to reach 300 million euros in the next three years.

Greek investment environment improving

Whilst the 2006 Jones Lang LaSalle 2006 Transparency Index is critical of Greece's inaccessible land registry and lack of key market performance data, there are some signs that the country's investment environment is improving.  In September, Kathimerini News quoted the general director for Athinaiki Economiki as noting that the Greek property market is "slowly but steadily obtaining the characteristics of a mature market" due to changes in the law on property investment companies, the introduction of a value-added tax on newly built properties and local market transparency.

SOURCE: Athens News Agency

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