- New tool for social and economic development -

Higher government loans, a longer summer season and a three-year development plan should give tourism a lift

ourism officials are cautiously optimistic about business, with reservations for 2002 showing a 30 per cent year-on-year increase.
The tourism authorities are drawing up a three-year development plan for the sector and the government has granted loans worth $27.58 million, almost twice the level it spent in 2000. Most of the money is going towards a major advertising campaign.
Greek development minister Akis Tsohatzopoulos says: “Our priority is to use tourism policy as a tool for economic and social development.”
Private sector operators, under the Association of Greek Tourist Enterprises (SETE), have welcomed the government support. The 2001 tourism season is expected to close with five per cent more tourists from the UK, at 2.9 million, compared to the previous year.
To give the industry a lift, the summer season has been lengthened to April to mid-October, supported by government subsidies. The state-run Greek National Tourism Organisation says that it has secured the support of 110,000 travel operators for the scheme. As a result, an additional 55,000 people visited off-season last year.

EU funds are being used to develop eco-tourism

Funds from the European Union are being used to develop eco-tourism in a bid to diversify the industry while protecting the environment. Dimitris Georgarakis, tourism secretary-general at the development ministry, says: “Eco-tourism is a very sensitive subject. The strict laws protecting ecology and the environment will remain in force indefinitely. The point of eco-tourism is to keep the ecological standards and blend people with nature.”
Mr Georgarakis says new laws will create incentives to encourage further foreign investment. “The concept is to leave the tourism industry to the professionals instead of the government. The state can be a good investor or public administrator in some things, but it is not good in business.”
The government is privatising Hellenic Tourist Properties (HTP), the state agency that manages public-sector assets in the tourism industry. HTP’s assets are valued in excess of $7.6 billion, representing the biggest property portfolio in the country.


Chomenidis
‘We need to upgrade the services we offer and attract higher spenders’

HTP was founded to build infrastructure in Greece, and in the 1960s it set up the first hotels and marinas for a new tourism industry. Company managing director Tasos Chomenidis says: “It was a good idea to do this at that time because we created Greece as a tourist destination. The local economy could not afford to make those investments.”
Since the mid-1990s, with the tourism sector well established, the plan has been to list HTP on the Athens Stock Exchange and this should happen early this year.
Mr Chomenidis says the profile of the industry must change from that of mass tourism as those holidaymakers tend to spend less per capita than in the past. “They seek very cheap quality. We have good quality, but we can’t operate at those prices,” he says.
“Therefore we have to change our type of tourist, upgrade the services we offer and attract higher spenders. We cannot afford to have more than 13 million people coming here every year.”

The attempt to attract more upmarket tourists is partly focused on tapping into Greece’s long history and its rich and colourful culture. This is one of the chief aims of Hellenic Festival, an association that groups together the organisers of cultural and artistic events held in Greece.
Hellenic Festival chairman Periklis Koukoç says the association was involved in entertaining audiences of 300,000 people last year. One of the challenges facing the organisers is to be able to stage performances to a high artistic standard in large auditoria, such as the ancient 11,000-seater theatre at Epidaurus or the 5,000-seater Herodus Atticus theatre under the Acropolis in Athens.

Mr Koukoç explains: “The aim is to promote events, both to the Greek public and to the international visitors who flock to our country during the summer months. The festival has the dual goal of showcasing Greek cultural traditions as well as contemporary Greek culture, in order to create an important attraction for tourism.”
The Festival of Athens regularly plays host to some of the most famous international artistes from a broad spectrum of the arts. Mr Koukoç says: “Tourists have always visited Greece for its culture as well as its natural beauty. The country offers the chance to make a journey through the history of mankind via our monuments and ancient sites.
“But, we try to show that Greece can offer a contemporary culture as well. A tourist can spend his time on the beach all day long and then attend a concert or a performance of an ancient Greek drama in the most beautiful theatres in the world, all under the blue sky of the summer night.”


World Report Limited Inc, PO Box 2339, London, W1A 2NX. Fax: (020) 7495 3707
[email protected]