TOURISM TO MAINTAIN AND STRENGTHEN IS BURNING ISSUE
Diversification policies include expanding first-class tourism, proposing eco-tourism initiatives, and targeting new markets away from Europe

Astir Palace hotels offer a world-class, five-star customer service in settings that highlight the luxury and beauty of Greek landscapes

With a population of 11 million, and annual visitor arrivals of around 14.2 million in 2002, it’s little wonder that tourism is such a big issue in Greece. Visitors generate more than $10 billion in revenue, accounting for well in excess of 10% of the nation’s GDP, provide employment for over one in ten Greeks, and make the nation the 15th most popular destination worldwide.

This is a country of many faces, from the fabled archeological remains that have earned it a reputation as the cradle of civilization, to the mass-market beach destinations favored by package operators, and the untouched jewels of villages with white-washed churches perched atop hills. Bordered by Bulgaria, FYROM, and Albania on land to the north, and the Aegean Sea and Turkey to the east, its rocky terrain at the tip of the Balkan Peninsula crumbles into the sea to form an archipelago of almost 2,000 islands.

Added to its claim as the birthplace of democracy, the nation is also the site of such ancient wonders as the Acropolis and Pantheon in Athens, the Colossus of Rhodes and, of course, endless golden sandy beaches bathed by the sparkling waters of the Aegean and Ionian seas.

Greece’s traditional charm as a cradle of culture and a hub of Mediterranean pleasures is set to gain a new and exciting edge as the country gears up for the 2004 Olympics

Greece’s traditional sun, sea, and sand image has long proven a powerful draw for tourists. More recently, the nation’s capital, Athens, home to close to four million spread out across the Attica plain from the port at Pireaus, and the historic second city of Thessaloniki, have become growing attractions for travelers.

However, a marked seasonal bias, with 90% of arrivals between April and October, and the threat of saturation in the most popular resort areas from mid-June to mid-September, cast a shadow over the long-term viability of the traditional model. Since joining the Euro zone in 2001 and adopting the common currency, Greece has also seen local prices gradually normalize to meet the European average, eroding its competitive advantage compared to other destinations, especially the developing markets of its eastern neighbors.

Tasty and healthy, Greek cuisine is a testimony to the richness of the country’s culture, while Greece’s numerous museums showcase the historical treasures of the peninsula

Planners and the industry are well aware of the challenges, and are taking steps to ensure that the celebration of the Olympics in Athens this summer will provide the springboard to diversify the sector. The aim is to achieve the ambitious objectives of the GNTO (the Greek National Tourist Office) and SETE (the Association of Greek Tourism Enterprises) by 2010: reaching 20 million visitors per year; generating $20 billion in income; and increasing per capita spending by 25% across the board.

After the disappointment of missing out on the centennial Olympiad in 1996, massive investment has sparked a renaissance nationwide. In addition, agro- and eco-tourism initiatives are high on the diversification agenda–marked by the recent award of the first ‘EU-Flower’ ecologically-friendly certificate to the Sunwing Resort Kallithea on Rhodes–and are a clear demonstration of the industry’s commitment to greener practices.

PAVLOS ZORBAS General Manager of Astir Palace Vouliagmeni

The relative lack of luxury facilities–only 30,000 of the 1.5 million beds available are located in five-star facilities–has attracted global hotel giants, eager not to miss out on their share of increasing demand. But local players like Astir Palace are hard at work to stay ahead of the pack, as Astir Palace Vouliagmeni General Manager Pavlos Zorbas (INTERVIEW) confirms. Astir is renovating the hotels at its Vouliagmeni resort, which covers an 80-acre wooded area on the Saronic Gulf, 15 miles from downtown Athens. At this five-star deluxe complex, gearing up for the shipping industry’s Posidonia event and the Olympics this summer, the emphasis is on world-class service to keep people happy. Mr. Zorbas wants guests “to leave our hotel feeling they have had a great time and with the idea of coming back.”

Exploring opportunities in new markets, away from the reliance on European neighbors, is also part of the strategy, and the GNTO is working hard to expand its network of offices. A recent development, the publication of a Chinese-language guide, is an attempt to tap into a potentially huge market. Of the more than 12 million Chinese who travelled abroad in 2001, 10% made their way to Europe. And with WTO estimations of up to 100 million Chinese taking foreign vacations by 2020, Greece’s negotiation of Approved Destination Status with China, and Beijing’s hosting of the 2008 Olympics, could well see black olives and feta cheese being served on the same menu as fried rice in the not too distant future.