Greece eyes bullish tourism season despite Ukraine war

The tourist industry in Greece is hopeful that the situation in Ukraine will not derail its recovery, with hundreds of thousands of people cancelling trips as the country eliminates Covid restrictions in an effort to resurrect the important sector.

The conflict in Ukraine erupted just as Greece’s tourism industry was reviving, with officials predicting a successful season after two years of lockdowns and restrictions.

But it has meant the loss of some 600,000 Russians and 240,000 Ukrainians who have cancelled reservations, said Lyssandros Tsilidis, head of the Federation of Travel Agencies of Greece.

On the Russian side alone, the loss amounts to 700,000 euros ($755,000), for Greece, whose economy depends on tourism for around a quarter of national income.

Greece closed its airspace to Russian flights after Moscow’s invasion of Ukraine on February 24, in line with other EU countries.

Russian national carrier Aeroflot also suspended all its international flights from March 8.

The tourist shortfall is acutely felt on the island of Crete, one of Greece’s premier travel destinations.

Russian and Ukrainian travelers traditionally account for one in 10 visitors to the island “of which Russians are the majority”, says Nikos Halkiadakis, president of the hotel union of Heraklion.

“This clientele will not be replaced.”

Like much of the world, Greece rolled out various lockdowns and restrictions as the pandemic took hold in 2020, effectively grinding tourism to a halt.

After a benchmark year in 2019 that saw 33 million tourists visit the country, numbers in 2020 plummeted to 7.4 million — a 78 percent drop, according to the Bank of Greece.

Revenues also tumbled 76 percent to 4.3 million euros ($4.6 million).

But as the country opened up last year, arrivals jumped by 94 percent and revenues shot up by 142 percent, central bank figures showed.

In a bid to further boost visitor numbers, the government has once again peeled back restrictions this year.

Mandatory screening tests for travelers who hold a European vaccination certificate were scrapped in February.

And vaccine passes will no longer be required in restaurants, bars and shops from May 1, while mandatory masks indoors will be scrapped from June 1.

Though Russia’s invasion has somewhat dampened hopes of a strong recovery this year, all hope is not lost.

Deputy tourism minister Sofia Zacharaki says experts expect a “doubling” of last year’s arrivals.

“The season has already portrayed a very encouraging image, which allows us to be optimistic,” she told AFP.

Tourism Minister Vassilis Kikilias told Skai TV Monday that some key destinations including Corfu, Santorini and Paros were already 80 percent full or more.

Arrivals in Athens and Thessaloniki also increased during Catholic Easter, he added.

Apart from denting visitor numbers, Russia’s war in Ukraine has compounded energy-fuelled price hikes that started last autumn.

Energy costs are up 70 percent, and food and drinks have increased by 28 percent, says Halkiadakis.

Still, Tsilidis is hopeful for a bounce-back, albeit slower than expected.

“After experiencing the worst in the past two years, we are not afraid, even if the pace of tourism recovery remains slow due to the war in Ukraine,” he said.