Life's no beach for Greece's crisis-hit tourism sector

Visitors to the Greek stand at the ITB, the world's top tourism fair that opened Wednesday, could be forgiven for thinking the country is booming, not battling one of the worst crises in its history.

"Come to Greece, we are waiting for you," said the glamorous Deputy Tourism Minister as a screen played images of shimmering turquoise seas, golden beaches and ancient monuments a far cry from the chaos and strikes of recent weeks.

The Minister, former film star Angela Gerekou, said she was confident Greek tourism, which she said accounted for nearly one fifth of the economy, would survive the fiscal crisis ravaging the country.

"Yes, there is a problem, but everywhere, not just for Greece," she said.

"But touristic Greece is still there, despite the crisis. Our 6,000 islands are still there. 15,000 kilometres (9,300 miles) of coastline are still there. The beautiful mainland with different villages and cultures is still there." "We will overcome this crisis," he said.

But despite the glitz and glamour of Greece's stand, taking up almost an entire hall at the ITB, efforts to strip Government spending down to the bone have clearly led to cutbacks in the Tourism Ministry's budget. It has been forced to use last year's promotional material to reduce costs.

And not everyone shares Gerekou's optimism.

While the rest of the industry eyes an upturn after a 2009 depressed by the global economic turmoil, Greek officials fear another year in crisis for its all-important tourism sector.

The Association of Greek Tourism Enterprises (SETE), General Manager George Drakopoulos, said tourism revenue in Greece slumped nearly 10 percent last year, with visitor numbers dropping seven percent.

"I suspect this year's demand will be similar to last year's," he said, adding that even this depended on operators cutting their prices and the euro depreciating.

The Hellenic Association of Travel and Tourist Agencies President Argyro Phili, said holidaymakers had put plans on hold after Greece announced a raft of austerity measures to reduce its ballooning budget deficit.

"What we are concerned about is whether the fear that their holiday will be ruined by unpredictable factors such as strikes will dissuade them from coming. That is what scares us," she said.

The United Nations World Tourism Organization, Secretary-General broadly upbeat about the sector globally this year, warned the Greek situation was "still very uncertain and unclear."

"Tourism will go very much the way the economy goes," Taleb Rifai said.

Some experts fear a recent war of words between Athens and Berlin over Greece's problems could deter some of the 2.3 million Germans that visited last year from repeating the trip.

In a scheme that mass circulation daily Bild dubbed "We give you cash, you give us Corfu," two German members of Parliament suggested Greece should sell some of its uninhabited islands to raise money. AFP