Travel And Tourism Industry Of Greece Tourism Essay Example

extended tax breaks and subsidies of up to 50%. The T&A&T Direct Industry is expected to contribute 7.0% to the country's GDP in 2010, equivalent to EUR15.4bn or US $22.8bn. By 2020, this contribution is projected to rise to EUR27.9bn or US $36.4bn, accounting for 8% of the total GDP. Over the same period, the T Economy's contribution to the overall GDP is anticipated to increase from 15.5% (EUR33.9bn or US $50.2bn) in 2010 to 17.3% (EUR60.bn or US $79.bn). Currently, around 418,000 people are employed by the T&A&T Direct Industry, representing approximately 10% of all employment in Greece during that year. It is estimated that by 2020, this industry will generate an additional 483,000 jobs, making up about11.% of the total workforce.The Travel & Tourism Economy's contribution to employment is also expected to grow from employing18.% (785k jobs or one out every five-point-three jobs)in2010,to twenty-one percent(916k jobsoroneoutofevery four-point-eightjobs)bytwenty-twenty.
In 2009, Greece encountered an economic crisis that had a negative effect on the number of arrivals in the country. In Q3 of 2010, there was a 5.2% decrease in international arrivals compared to the previous year, leading to an overall decrease of 5.3%. The Revenue Per Available Room (RevPAR) in Athens also decreased by 11.3% in Q3, resulting in a year-to-date decline of 6%.

Despite a 22% decrease in Thessaloniki resort hotels' Revenue Per Available Room (RevPAR), there was a positive change in the overall RevPAR, which increased by 5.1%. This reversal of the previous negative trend is also evident in the year-to-date figure, with a 4.4% improvement compared to a -4.0% decline in Q2. As a result, the expected decline in Greek tourism for this year

did not occur. The Greece debt crisis began in 2010 and worsened the impact of the global economic crisis on the Greek travel and tourism industry. The involvement of the European Union and IMF bailout is anticipated to affect consumer confidence due to the debt crisis, leading to adverse consequences for outbound and domestic tourist flows in 2010.

The VAT increase on hospitality services from 9% to 11% on July 1st, 2010 will have a negative impact on the profitability of the industry. This is particularly concerning given the current market conditions that are causing price decreases. The Hotel Federation and the Hotel Employees Union have announced a three-year agreement on labor relations, which includes a 1% salary increase in 2010 and an additional 1% increase in 2012.

Greece has a significant number of hotels rated as either one or two stars, providing opportunities for investors to establish four- and five-star properties. According to the Greek Hotel Branding Report, branded hotels in Greece only make up 4% of the total number of hotels and account for just19% of the total availability of rooms. In contrast, other European countries have figures ranging from25% to40%. Furthermore,Greece has well-developed infrastructure with40 airports throughout the country, including15 international ones. Additionally,it has a well-designed national highway system.

Greece has recently introduced its Public Private Partnership (PPP) strategy, offering investors opportunities to participate in new infrastructure projects. These projects include marinas and thermal springs. The National Strategic Reference Framework (NSRF) for the years 2007-2013 outlines the main priorities for EU Structural Funds Programs in Greece. In terms of tourism, the NSRF provides significant financial support, with a budget of over 500 million Euros until

2013. Additionally, the government has released a draft Investing Law that includes financial incentives. These incentives come in the form of subsidies up to 50% or equivalent tax breaks for companies undertaking new investments or purchasing assets from companies that have ceased operations.

With a population of 11 million people and hosting over 17 million visitors, Greece recognizes the importance of emphasizing education and training in tourism services. The workforce in Greece possesses proficiency in various languages, extensive knowledge in the tourism sector, and a willingness to tackle new endeavors. Whether it involves overseeing operations or delivering hospitality services, Greece excels at offering exceptionally skilled personnel for tourism enterprises. An illustration of such a company is Starwood Hotels & Resorts Worldwide, Inc.

Starwood Hotel & Resorts Worldwide, Inc is a prominent hotel company that has multiple properties across the globe. By the end of 2009, it possessed, managed or franchised a total of 992 properties under nine distinct brands. Among its portfolio is W Hotels, an upscale boutique brand specifically catering to a younger audience. W Hotels made its debut in 1998 with its first property located in New York City.

The trade name's expansion has become global, with new properties in Mexico City, Seoul, and Istanbul. The first W hotel in Western Europe, the W Barcelona, opened in October 2009. By 2011, the number of W hotels is expected to double as upcoming hotels are set to open in Austin, Texas (2010); Taipei, Taiwan (2010); Marrakech, Morocco (2011); Guangzhou, China (2011); Bangkok Thailand (2011); Paris France(2011); Athens Greece(2011); St. Petersburg Russia(2011) and London England(2011).

The EU and the IMF have agreed to provide Greece with a financial aid

package of approximately $1,000 billion to prevent the spread of its debt crisis. However, this assistance aims not only to resolve Greece's immediate debt crisis and reduce its budget deficit but also to ensure future economic growth for the country. According to the World Bank's ease of doing business index, Greece is ranked 109th among countries, placing it below Egypt, Ethiopia, and Lebanon. In terms of evaluating the business environment in high-income nations, Greece ranks near Equatorial Guinea at the bottom. The strength of the Euro against non-Eurozone currencies has resulted in increased costs for traveling to Greece. Nevertheless, there is a scarcity of luxury hotels, golf courses, and resorts in Greece that would justify these higher expenses. Moreover, due to the strong Euro, prices of goods and services in Greece are expensive compared to other international markets which weakens its competitiveness. This problem will worsen if labor productivity continues growing in countries like Germany and France as it will further increase the value of the Euro. Consequently, Greek exports will become more costly globally and less competitive.

Greece should adopt a currency that is less strong than the Euro to bolster their efforts.