Greece: Closure of tourism enterprises raises concerns

Greece: Closure of tourism enterprises raises concerns

The new “wave” of Greek hotel enterprises going bankrupt, with 2 out of 3 believing that shutting down due to the pandemic is plausible, has raised widespread concern. Furthermore, the loss of 4.5 billion euros as a result of a 50% drop in turnover exacerbates worriment.

In the midst of this difficult situation, the Hellenic Chamber of Hotels presented a set of proposals for the implementation of measures to guarantee the viability of the Greek hotel industry after the pandemic crisis comes to an end.

The main findings of the research commissioned by the Chamber at the Institute for Tourism Research and Prediction, as presented by HCH President Alexandros Vassilikos, are as follows:

Among hotels with all-year-round operation, 65% of them consider bankruptcy as a possible or very probable scenario (46.6% possible, 18.3% very probable). The corresponding rate for seasonal hotels is 51.8% (40.5% probable, 11.3% very probable).

95% of with all-year-round enterprises foresee a 56.3% average percentage reduction in turnover. Respectively, 94.2% of seasonal hotels expect an average reduction in turnover by 56.1%.

On the basis of the hotel industry as a whole, the loss of hotel turnover for 2020 is estimated at 1.2 billion for hotels with all-year-round operation and 3.26 billion for seasonal hotels. The total estimated loss amounts to 4.46 billion.

What is more, 57.3% of all-year-round hotels estimate a 40% decrease in employment.

Respectively, 65.4% of seasonal operations expect a 41.5% decrease in employment. On the basis of the hotel industry as a whole, it is estimated that 45,142 jobs are directly at risk.

Additionally, 71.1% of all-year-round hotels state that they are in need of funding amounting to 31.1% of their turnover. Respectively, 66.6% of seasonal hotels declare funding needs at 31.4%. On the basis of the hotel industry as a whole, it is estimated that the financing needs reach 498 million euros for all-year-round enterprises and 1.29 billion euros for seasonal businesses. In total, the need for funding stands at 1.79 billion euros. /ibna