Tourism slump threatens to send Greece back to eurozone crisis

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Country’s success or failure in luring tourists to its shores will determine how bad things get. FMTNews Greece

A picture taken from an empty restaurant, shows people walking on a seafront promenade in Athens on April 29.

“The situation now is at zero, nothing is moving. How will tourists get here without airplanes? In a submarine?” says Chahine.With tourism paralysed by the coronavirus pandemic, Chahine has cut his staff to just eight and fears the season will be much worse than even 2015, when Greece was forced to close its banks and impose capital controls to avoid bankruptcy.

If tourism is a wipeout this year, some economists say, the economic and financial gains born of years of austerity and three international bailouts may unravel. “I think the deterioration will prove temporary because Europe is reacting,” Bank of Greece Governor Yannis Stournaras told Reuters.“There are encouraging signs that its response will be commensurate to the measures announced by the ECB.”

“This season is not going to be like the other years,” Tourism Minister Harry Theoharis told Reuters.He said Athens was pushing for common EU rules on how to keep tourists safe from contagion when they travel: a set of protocols that would mean they need not to go into quarantine, either at their destination or when they return home.

 

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