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Greece 2005

Diversifying the tourism product

Previously neglected by foreign skiers, Greece is starting to attract more visitors in search of unique slopes.

By Dimitris Yannopoulos

The decline of mass tourism in Greece over the past four years has highlighted the necessity of developing and promoting high-quality, alternative or "special" forms of tourism. This form of diversification of the tourist "product" is the only way to overcome the country’s seasonal dependency on the summer months, preferred by the majority of its 13 million visitors despite mild weather prevailing for 8-10 months of the year.

Also, the exclusive reliance on holiday package-tours has priced eurozone-member Greece out of the low end of the tourist market where competition from "cheaper" regional rivals in the Balkans, the Adriatic, the Aegean or the southeastern Mediterranean has intensified during the last decade. In the past couple of years, Greece has been the only one of the major eurozone tourist destinations that has not improved its turnover.

"It is inexcusable for a country like ours with an exceptional climate, a rich culture and varied island scenery to have a tourism period of four or five months," says Tourism Minister Dimitris Avramopoulos. "Our goal is for Greece to be a year-round destination. We can achieve this by attracting high-income tourists who can afford more than the sea-sun-sights combination, and we can offer that."

Avramopoulos and other senior officials or businessmen in the tourist industry believe that a largely untapped potential for development exists in integrated resort complexes, combining health tourism (thalassotherapy, spas, beauty parlors, rehabilitation facilities) convention centers, marinas, residential tourism (real-estate sales or leases, including group retirement schemes), casinos or golf courses. These are the special forms of tourism on which seasonality, hard currency or economic cycles have no effect.

With the exception of luxury resorts, where thalassotherapy and spas or other forms of health and beauty care are optional parts of the broader hospitality package, Greece has not yet ventured into the lucrative field of health resorts. In Switzerland and Spain, this is a blooming branch of year-round tourism.

Thousands of hotel beds in Spain’s Costa Del Sol are leased or sold as integrated "health villages" to German and Japanese insurance funds for the treatment of their patients or as retirement residences. These cost much less to the funds than the equivalent services offered at home.

The same potential for large-scale investment exists in the field of eco-tourism with the Greek mainland and islands blessed with countless biodiversity habitats in settings of unparalleled beauty and also a few universal rarities, like the Fossilized Forest on the island of Lesbos and the gum-mastic grove on neighboring Chios island.

"There is no question that alternative, high-end tourism could have solved the problems of Greek tourism if a strategy for its development had been adopted before the crisis in the sector broke out in 2001," says investment consultant Aris Ikkos, director of JBR Hellas Ltd. "But now Greece has to cover a lot of ground in the field of new tourist ventures that its regional competitors are already treading."

Thanks to the 2004 Olympic Games, Greece has now acquired know-how as well as the facilities for venturing into the daunting challenges of alternative tourism on a grand scale. A case in point is the all-round "refurbishment" of Athens ahead of the Games which has turned the capital into "a whole new product" in the parlance of the global tourist market.

"The new airport, the metro, the Attika highway, the tram, the pedestrian walkways connecting commercial centers and antiquities in the old centre around the Acropolis, the expanded marinas on the southern coastline, not to mention a series of readily adaptable stadiums, are all giving Athens the unique, fresh and modern metropolitan identity which it lacked in the past," says the president of the Attika Hotel Association, George Tsakiris. "But most important of all, we now have the best hotel product in Europe. I’m not saying other cities don’t have wonderful hotels, but that we have the best quality overall. So many hotels have been renovated for the Olympics - 200 in the past four years, in all categories - and no other European city can compete with that."

In a rare instance of corporate solidarity, all the major business bodies of Greek tourism joined hands at the start of 2004 to set up the Athens Convention Bureau, the first non-governmental agency for showcasing Athens and other Greek cities and islands for the conference, incentive and exhibitions markets. "We had only been operating for a month and, judging by the numerous and varied inspections we’ve hosted, we can say Athens is experiencing growing demand from the business sector for conferences (of 400 - 2000 delegates)," says Bureau director Kali Travlos.

The positive feedback arises from Athens’ state-of-the-art conference facilities and infrastructure that now match the highest level of corporate requirements in Europe. For instance, the new wing of The Megaron Concert Hall houses one of the most sophisticated convention centers in Europe. Taking up to 1700 delegates with ease - and ample floor space for exhibitions, corporate events, workshop and break-out rooms - the Megaron Convention Centre is a world-class business venue. A number of five-star and luxury refurbished hotels - each with in-house convention facilities of their own - are between 5-10 minutes away from the Megaron.

Despite the mild Greek weather, there are more than 20 full-fledged skiing centers scattered on mountainous areas of the mainland, especially in the northern provinces of Macedonia and Epirus, as well as in central Greece (Mt Parnassus) and the Peloponnese region further south. But all these centers cater almost exclusively for the domestic winter holiday market which remains small, fragmented and lacking in the "Alpine" air of winter luxury that could give them a year-round appeal even when the snow has melted.

As in other forms of special tourism, however, the existing skiing centers offer considerable potential for expansion.

This outlook would be more lucrative if the country’s picturesque winter hotels acquire an "extrovert" orientation with appropriate investments, joint-ventures and cooperation with foreign winter tour operators. Above all, diversification within large-scale resorts (combining long-term residential facilities with bundles of special tourism services) holds the key to the recovery of Greece’s biggest and most competitive industry.

SPONSORS

Ministry of Tourism
OPAP
Kilada Hills
Hellas EasyYacht
 
TEAM
Project Directors
Maja Lapcevic
Elodie Piat
Stephen de Vasconcellos Sharpe
Project Coordinator
Melanie Radike
Written By
Sandie Robb

 

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