Devika GhoshMoneycontrol.com
A sense of nervousness and foreboding is settling in on millions of tourists who are planning a trip to crisis-hit Greece. With capital controls in place, Greek banks are shut and questions are being raised on supply (shortage) of basic goods.
But Anil Khandelwal, CFO of Cox & Kings, says Greece has now become a cheaper destination to offer to Indian customers and hence sales have increased. He is not too piqued with banks remaining shut in Greece either. "Leisure customers can withdraw any amount of currency with an Fx card. It's only the Greek population that has a restriction. In fact, hotels have become cheaper and plane tickets affordable," he said in an interview to CNBC-TV18.
He in fact expects an increase in the number of tourists going to Greece in September and October.
Over the weekend on Sunday, Greece voted to reject the current proposed bailout norms in a referendum. By next Sunday, it seems that the world will have a more clearer picture if Greece will ultimately have to leave the Eurozone. If it does, estimates suggest it will take minimum 18 months to reintroduce drachma (Greece's currency before it adopted the euro) in its new avatar. During this time, the euro will be used as a parallel currency. In that sense, tourists need not be worried about the discontinuation of the currency (euro).
While the picturesque Santorini Island, historic sites, beautiful sparkling sea and the vine-shaded restaurants hold a major appeal, the fear of a 'Grexit' is making the tourist community nervous.
Prasad Pallival, managing director, Quality Travel World Pvt Ltd, says in the past week, there have been four cancellations to Greece. Two couples are now going to Switzerland, while the the other two decided to postpone their trip altogether, he told moneycontrol.com in a telephonic interview.
Since the referendum Pallival hasn't received any further enquiries for a trip to Greece. He says tourists are concerned about the situation there - bank closure being the primary unsettling thing.
Pallival also adds, not just his company, but market experts say the industry is witnessing around 80 percent booking cancellation post the referendum. According to him, tourists are unwilling to carry as much cash. Greece tourism has been hit hard with ATMs and banks closed and a withdrawal upper limit of just 60 euros per day, he adds.
Prior to this, of the entire Europe, 20 percent of the travel was to Greece, but post the referendum, it has come down to just 4-5 percent and that too just business travellers are opting for it. Luxury travel has taken an even bigger hit.
Tourism accounts for nearly 20 percent of Greece's GDP and this is the peak summer tourist season and the bad press is definitely not winning the nation any brownie points. Post the referendum result, Constantine Michalos, president of the Athens Chamber of Commerce and Industry, said on Monday that one of the country's main economic drivers, tourism, could suffer.
"The major fear at the moment is that, since we are at the peak of tourist season, [and] we cannot supply basic goods such as food items and pharmaceuticals, we run the risk of [hurting] not just the 10.5 million Greeks, but also the tourist wave that we have during this time of the year," Michalos said in an interview to CNBC.
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