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Ioannis Retsos: Greece Will Not Survive out of the Eurozone

26 July 2010 / 16:07:03  GRReporter
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Can you estimate anyhow what you expect from this year's tourist season?

You see, this year is very difficult. And although it is not lost yet, I am more concerned of what will happen in the near future. And I believe that we have prospects. Tourism is the main branch of Greece, which provides 18.5 percent of GDP. We should all get to invest in this activity. So, we have prospects, as long as things settle down a little. The IMF has recently come to Greece though. People are somewhat confused, often angry and surprised. This leads, as we said before, to those strikes, processions, and in general to this situation that does not help our tourism. I believe when things calm down a little and the results of people’s sacrifices become evident, we will have a future. Because we have a very good product, quality product, and we have many things in which we can be very competitive. I want to be optimistic in this difficult situation, if not for this year, then at least for the next year.

Do you find the government efforts to improve the image of Greece internationally efficient?  
 
See, unfortunately our governments have not invested in tourism in general diachronically over the past 30 years and have taken many wrong strategic actions. Surely you've heard about how many tourism ministers, chief secretaries and presidents of Greek Tourism Committee have changed over the past 30 years. That post was held for six months on the average. This means that there is no sound strategy needed if you want to develop tourism. We are trying now. But there is a serious problem in terms of advertising because recent governments have left obligations to foreign networks of over € 100 million. These debts are not settled yet and we are in a very unpleasant situation at the moment as there is no communication channel from the Government and the Ministry of Tourism to foreign networks. If these debts from the past 5-6 years are not settled, it will be very difficult to send your messages out and to implement all the advertising activities you want.  

You mentioned the competitiveness of Greek tourism several times. A possibility of Greece to leave the Eurozone and return to the drachma is being discussed lately. How could this affect tourism in Greece?  

I believe this is a disastrous scenario, ie do not believe that there is a possibility of survival of the country outside the Eurozone. To say that if we leave the Euro and return to the drachma would make us more competitive is wrong. Greece's main problem today is not its competitiveness but its external debt. Leaving the Eurozone, the Euro and returning to the drachma will not solve the problem of external debt. Rather it will become still more serious because we will have to devalue the currency. Therefore, no matter how competitive we would be then there is no way to gain such revenues that can pay this debt. Also we will be separated from the rest of the world, because, in practice, we would be like a bankrupt company that noone wants to fund. This is a disastrous scenario for me and it is a mistake to consider that by leaving the Eurozone Greece and the Greek tourism will become more competitive.

Are there strikes in the tourism industry?

There have never been strikes in the tourism industry. I think this also proves our industry is functioning correctly. Of course, the employees and each syndicalist often pursue things believed to be correct for the branch, or they protest and point problems out. In any case, the image of our industry, not only in Attica but also in Greece, and the reluctance, if you wish, of our staff and employees to participate in these mass strikes, reflect the proper functioning of the tourism industry.

Tags: Ioannis Retsos tourismEconomyMarketsTourism
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