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Home NewsConferences, Seminars, Forums Olympia Anastasopoulou at the 24th Annual Capital Link Invest in Greece Forum – Sustaining Growth & Investment Momentum

Olympia Anastasopoulou at the 24th Annual Capital Link Invest in Greece Forum – Sustaining Growth & Investment Momentum

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Olympia Anastasopoulou

Following our last from “Nextisnow 2022”, Olympia Anastasopoulou, Greece’s Secretary-General at the Ministry of Tourism, responds to questions on the specialist panel on “Tourism Hospitality – Enhancing Greece’s Attractiveness & Competitiveness” at the recent Capital Link Forum in New York:

1.How much does tourism contribute to the Greek economy?

Greek tourism, which contributes to regional development and social cohesion, supports not only investments but also our balance sheet. It is a sector which doubly boosts economic activity. As 1 in 4 euros of the country’s GDP comes, indirectly or directly, from tourism activity, the tourism ecosystem is the locomotive of the Greek economy. Overtime, tourism has been a key contributor to economic growth and employment, contributing, in its wider aspect, about 25% to Greek GDP. 

The Greek tourism ecosystem has been a source of optimism for the future of the Greek economy in the difficult years of the memoranda, while it is now also the vehicle of recovery for the high and continuous development of our country, in order to create lasting prosperity for both our country and its citizens.

In particular, tourism, whose dynamic recovery this year may also move to levels 10% higher than those of 2019, raises expectations for bigger than expected growth.  Based on evaluations of its secondary, indirect benefits to other sectors of the economy, it is estimated that it will generate in 2022 up to € 52.89 billion for the GDP, provided of course that extraordinary events with adverse influence do not occur.

More specifically, the sum of €52.89 billion is corresponding to about 28% of the projected GDP of 2022, results from the multiplier of 2.65 attributed by economists to tourism and the estimated increase in travel receipts this year to the level of €20 billion from €18.2 billion in 2019. These estimates are shared by major foreign firms such as HSBC and Bank of America, with the former upgrading its forecast for Greek growth rate this year to 6.5% from 4% previously and the latter talking as well about a significant positive impact.

At this point, it is also worth noting that research by Grant Thornton and the Hellenic Chamber of Hotels shows that the benefits of tourism are diffused in 17 sectors of economic activity and 9 sectors of the Greek economy, including the primary one.

At the same time, Grant Thornton’s survey on investment in hospitality (the total of accommodation and catering units) records an average annual contribution to the country’s economy of €1.5 billion, while the amount of annual investment in renovations reaches €1 billion and the generation of new accommodation at €170 million. In addition, other investments in accommodation reach €300 million annually, whereas million investment funds in catering establishments reach €140.

Last but not least, hospitality is the first sector in terms of job supply (1 in 4 jobs in the country).

2.Why should someone invest in the Greek tourism ecosystem?

Over the last few years, Greece has implemented a range of reforms and initiatives to create a business-friendly environment that will fully unleash the country’s economic potential. That is now being increasingly recognized by international economists and investors alike.

The results are evident, recently, the respected Economist Intelligence Unit (EIUrecognized Greece as the number one country in the world that has done the most to improve its business environment. From late 2019 until now, Greece climbed 16 notches, more than any other place, according to the latest EIU Business Environment Rankings. 

In addition, international investors are also taking notice. In 2021, FDI jumped 72.3% to €4.8 billion from €2.8 billion in 2020. And despite the challenging global environment, 2022 is set to be another great year on this front with the likes of Google and JP Morgan joining the list of large multinationals to recognize the growth potential and business advantages of Greece. Indeed, the latest data show that FDI this year may have already surpassed last year’s levels and is on track for an all-time record, further confirming Greece as one of the fastest-growing investment destinations in Europe.

Furthermore, according to the “Ernst & Young Attractiveness Survey Greece 2022“, more than 1/3 of businesses plan to invest or expand their activities in our country. At the same time, 3 out of 4 investors believe that Greece will continue to attract more investments in the next 3 years.

In other words, despite the increased uncertainty in Europe and around the world, at a time when the average attractiveness of Europe and competing countries is significantly affected by the Russian invasion in Ukraine, the attractiveness of Greece, as an investment destination, remains resilient.

In fact, according to Prem Wacha, President of Fairfax Financial Holdings, “Greece is still – by far – the best European country for investment”, as he stressed in a keynote speech at the Toronto Economic Forum in October.

Why Greece

With more than 16,000 kilometers of coastline, more than 6,000 islands and islets, and a well-established tourism industry, Greece presents a prime investment opportunity in the Tourism sector. The country is one of the top global tourism destinations for sun and beach holidays and provides attractive propositions for year-round themed holidays.

The competitive advantages of Greece, such as rich cultural heritage, natural beauty, and geographical variety, have been attracting significant tourism investments in recent years, thus further strengthening Greece’s image as an ideal destination both for holidays and tourism-related investments.

Brand Value: Greece has several destinations that are among the core preferences of global tourists and are internationally recognized as having premium holiday appeal.

Geography and Landscape – From the multitude of sunny islands and beaches to the snowy peaks and forests, Greece offers an unlimited variety of attractive destinations for year-round holidays.

History and Culture – More than four millennia of recorded history and an abundance of sites, museums, and locations where one can see history unfold before one’s eyes.

Established Infrastructure – More than 800,000 hotel beds, more than 500 conference facilities, more than 8,000 yachting births, direct air links from major European airports to many destinations.

Greece is ranked 25th among 140 countries in the World Economic Forum’s (WEF) 2019 Travel & Tourism Competitiveness index. Also, in individual indicators, Greece ranks 13th for its health & hygiene, 18th for air transport infrastructure and 18th for tourist service infrastructure.

Key investment opportunities

  • Privatization of several key state-owned tourist and transport assets (marinas, regional airports, tourist properties etc.) by the Hellenic Republic Asset Development Fund.
  • Development of premium tourist resorts and properties aided by the funding and tax incentives given for such new developments.
  • Development of specialized tourist products and facilities focused around specific themes (gastronomy, culture, wellness etc.), categories (medical tourism, MICE etc.), markets (Russia, Israel, Asia etc.) or segments (elderly, couples etc.).

TOURISM SUBSECTORS

Sun & Beach Tourism

Sun and beach tourism has always been a source of significant income in Greece, aided by the great weather, variety of beautiful islands and beaches and traditional hotel infrastructure.

Nautical Tourism

The development of infrastructure to support nautical tourism is a strategic goal for Greece over the next years.

City Break Tourism

City break tourism consists of three to four-day trips to cities around the world, that offer a combination of cultural attractions and an active city life. It is a year-round source of tourist revenue and has been a great growth driver for cities across Europe and Asia. 

Cultural and Religious Tourism

Greece is one of the richest countries in Europe in terms of cultural and religious monuments and historical significance. Greece has a total of 18 UNESCO “World Heritage” sites which place it in the top 10 of countries internationally, and a number of museums, smaller sites and monuments and places of historical or religious significance.

Medical Tourism

Medical tourism has been a source of growth for several countries or regions, driven by the desire of people to combine high-quality, lower-cost medical services with a hospitable tourist environment.

Meetings and Incentives (MICE)

The meetings and incentives tourism market is significant both for its own value added and for providing an excellent lead-in to other forms of tourism, introducing a large number of delegates and conference-goers to new destinations which they may afterwards prefer for their summer holidays or city break.

Integrated Resorts – Holiday Housing

The Legislation for Integrated Tourism Resorts and Holiday Housing introduced new opportunities in integrated tourism resorts.

Sports Tourism

Sports tourism is a rapidly growing niche in the travel/tourism industry. More and more tourists are interested in sport activities during their trips whether sports are the main objective of travel or not. Sports tourism is a viable pathway for generating visitor spending and promoting a destination’s local attractions and outlying districts.

3.What are the challenges the Greek tourism industry faces in 2023?

Travel and tourism professionals said it was time to leave Covid-19 behind as it would not be affecting business activity next year, according to the latest WTM Industry Report 2022 presented in London during the World Travel Market expo.

Only 5 percent of travel and tourism decision-makers polled for the WTM report said potentially increasing Covid-19 rates would affect their business negatively in 2023. Instead a top concern for 45 percent of respondents was the cost of living, which they said may more likely impact their business negatively in 2023.

Next on the list for 13 percent was the price of petrol, the Russia – Ukraine war (12 percent), energy prices (10 percent), and fears of chaos at airports (4 percent).

The global travel and tourism industry was thriving before the Covid pandemic, recording 10 years of continuous growth. After more than two years of challenging trading conditions, it’s pleasing to see the senior buyers, exhibitors and visitors who took part in our research showing real optimism that the dark days of the Covid pandemic are behind them.

Obviously, it is still early for predictions regarding 2023 and we are pleased with the success that seems to be prescribed for the Greek tourism market, however we are not complacent.

The resilience of our tourism ecosystem is at the heart of the national strategic planning for the next day.  This is because, although it is impossible to predict where the next crisis will come from, it is important to learn from the current period and carry out structural reforms to address the economic, environmental, and social challenges related to tourism.

In short, records are welcome, especially in a very difficult economic and geopolitical context. However, the duration of the success, as well as the wider diffusion of tourism income, require strategy and policy formulation.

Tourism is a national issue and we are working systematically both for the upgrading of infrastructure and legislative reform, as well as for the digitization of the tourism product and for the upgrading of tourism education in Greece (Upskilling and reskilling).

Tourism brings income and supports the average Greek family. At the same time, the “Tourism for All” program, which is in force until June 2023, continues to stimulate domestic tourism and support accommodation owners in winter destinations. Another draw for an additional 100,000 cards will follow. In this context of support, as recently stressed by the Minister of Tourism, V. Kikilias, the government announced that it will allocate 100 million euros through the “Save – Business” program for the energy upgrade of mountain accommodation under 150 beds, and will expand the NSRF for an additional year.

The main objectives of the national tourism policy we have set are to improve the competitiveness, quality, authenticity, resilience and sustainability of the tourism product and at the same time to enhance tourism investments with a low environmental footprint.

After all, at the Ministry of Tourism we believe that with systematic and collective work, we can see Greece gain an even higher position in the ranking among the popular destinations of global tourism.

According to international research, the pandemic has brought a radical transformation in the code of modern values. As a result, a new landscape is emerging in the global tourism scene, with a new type of traveler starring.

Large sizes are put aside, the modern tourist returns to the concepts of moderation and balance. After the covid experience, values such as safety, health, overall well-being, proper nutrition, protection of the planet are further strengthened and promoted as imperatives.

For the tourism data, the above translates as follows: more and more travelers will be looking for new destinations, non-mass, alternative, that will respect the balance with the environment and will have high quality hospitality infrastructure, while offering a sense of security to the traveler, but without depriving him of the magic of travel.

Besides, the trend that emerges as absolutely dominant for the coming years is the search for destinations that can offer their visitors unique, authentic, experiential experiences.

The economy of the experience, which had already appeared dynamically in the international tourism scene, will be the spearhead in the next few years.

Therefore, taking into account these new, international trends, as well as the various studies and researches of Greek and international institutes and bodies, the course of Greek tourism presupposes targeted development through a methodical, substantial, innovative, digital and environmentally friendly design in a context of sustainability and resilience.

At the same time, the Greek State is thoroughly examining various megatrends such as overtourism, the sharing economy, social and demographic changes, emerging destinations, security and crisis management.

In Greece the traveler can enjoy various experiences in a truly holistic way, inscribed in his body, soul and mind. One could say that ancient Greek well-being returns as a modern demand of the new era.

Thus, we also take advantage of the tendency of Millennials, a very dynamic audience, to record special, unique travel experiences, as well as the new culture of remote working, the evolution of which seems to be “digital nomadism”.

In the midst of an unprecedented international turmoil, it is important to focus on all the things that make us optimistic about a better future.

The facts are clear and aware of our difficulties, but also of our capabilities, we are called to act accordingly, turning crises into opportunities.

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