Wednesday, June 22, 2011

Arab unrest puts spring in Greece's tourism step

Holidaymakers are opting for European beaches, offering much-needed economic cheer to Greece, Spain and Portugal

The struggling Mediterranean countries of Greece, Spain and Portugal are seeing a jump in tourism as visitors who might have opted for destinations such as Egypt and Tunisia are opting for alternative "sun, sea and sand" locations that they perceive to be safer amid the Arab spring.

Thomas Cook reported that summer bookings for Greece were 13% higher than a year ago, while bookings for the Spanish hotspots of the Balearic and Canary islands were up 22% and 11% respectively.

A spokesman for TUI Travel, the owner of Thomson and First Choice, said the two brands had "seen strong demand for holidays to Greece and Portugal and a resurgence in holidays to mainland Spain, the Canary islands and the Balearics". As a result, the group is increasing the number of holidays it is offering in the Canary islands over the summer by 10%.

The surge in tourists will bring some comfort to countries that are pushing themselves even harder as holiday destinations in the hope of alleviating financial woes.

Tourism already accounts for about 10% of gross domestic product in Spain and Portugal, while in Greece it makes up about 18% of the economy, accounting for one in five jobs.

"Data on international tourism in Spain, Portugal and Greece, as well as other north Mediterranean destinations, for the first quarter of 2011, are rather positive [and] partly caused by a redistribution of flows from Tunisia and Egypt," said Taleb Rifai, secretary general of the United Nations World Tourism Organisation.

The figures will have been particularly welcome in Greece, whose economy this week became the lowest rated in the world ? behind those of Ecuador, Pakistan and Jamaica.

But although visitors to Greece are increasing, this is partly down to significant price decreases, according to J�rgen Ringbeck, head of the transport, tourism and travel practice at consulting firm Booz & Company.

Furthermore, Ringbeck said politics and public services could undermine Greece's continuing rise as a tourist destination.

"Yes, it's very cheap but it is less clean and comfortable because of the public sector cuts, so there are environmental issues concerning beaches and various facilities. And, while the Greek population has been traditionally tourist-friendly, there is growing tension between Greeks and some European tourists because they are angry about financial negotiations between various European governments," Ringbeck said.

Spain is the world's second biggest tourist market by value. Visitors generated $52.7bn of revenue last year and the sector employs 2.1 million people in a country with a population of about 47 million, according to the World Tourism Organisation.

Greece's tourism industry is the world's 21st biggest by value, generating $12.7bn of revenue last year and employing 298,000 people out of a total population of about 11 million. Portugal is just behind, with a $10bn industry employing 406,500 people.


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Source: http://www.guardian.co.uk/world/2011/jun/15/greece-tourism-med-arab-spring

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