07GreekEconomy&Markets

Reinventingthe tourism product

Economic diplomacy

Photovoltaic expectations

Equity market glance

2nd issue - June 2007

(4%*)

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Themes11+ 2 comparative advan-tagesDeputy Foreign Affairs MinisterEvripidis Stylianidis looks at thenew global economic realityand the role of diplomacy.(pages 32 to 34)

Prospects of Photovoltaic Electricity GenerationThe chairman of the Regulatory Authority for Energy,Michael Caramanis, tells us about the role of photovoltaic systems. (pages 6 to 7)

MarketsQ1 results : Strong corpo-rate earnings (pages 40 to 41)

Leadership role in worldlottery business (pages 42 to43)

Flying high (pages 44 to 45)

Greek Economy & Markets 07A publication of the “Agora Ideon” forum.

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Albania. The content of the magazine does not involve the reporting or the editorial

departments of the IHT.

COVER STORYReinventing the tourism productLeading experts from the field of tourismtalk about the sector’s prospects, its grow-ing role in the economy and changingidentity. Fani Pali-Petralia, StavrosAndreadis, Harry Coccosis, AlexandrosPanagopoulos, Spyros Kladas. (pages 11 to21, 28 to 29)

Dream Resorts FactoryInterview - Eulogio Bordas. (pages 22 to 24)

Greece re-branded as an “infinite experience space”Alexan-dros Kouris (pages 26 to 27)

Large-scale future investments Maria Vasileiou (pages 12 to 16)

Contentseditorial 6/07

Stelios Bouras

The team at Greek Economy and Markets 07 (GEM07)chose to focus the magazine’s second edition on whatis one of the most vital sectors of the economy and afield where changes are rapidly taking place, particu-larly after the country hosted the Athens 2004 OlympicGames — tourism.

Apart from being important from an economic point ofview, tourism is of interest to us all as we have have allcome into contact with the sector at some stage, there-by enabling each of us to draw our own conclusions.

Data indicate that 18 percent of economic output isreliant on visitors reaching the country’s shores whilethe percentage of gross domestic product that isdirectly and indirectly affected by the sector is muchlarger.

Much of the focus on tourism revolves around thecountry’s position on the global map and annualarrivals.

Other topics addressed by the experts that contributedto this edition of GEM07 is how Greece is managing tocompete against cheaper destinations while also mak-ing attempts to move away from the ‘sun and sea’ for-mula that the country has relied upon for so manyyears.

Progress is being made on many different fronts.

A draft bill on zoning in tourism is seen as a major stepforward for a country that has still not put together anational land register.

Infrastructure projects left behind by the costlyOlympic Games are being snapped up by the privatesector while plans are being put into effect to extendthe tourism season beyond the busy summer months.

One of the interesting messages to come out of thesereports is the large role education has and the fact thatmore work is needed in this department. This does notjust involve formal training.

Professionalism in the sector varies enormously, as inany other field. However, when an industry lendsbroader support to a whole nation, training and servicequality should not be an issue up for discussion.

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Prospects of photovoltaicelectricity generation

In order to comply with European Union Directive

77/2001 that set a 20.1 percent target for the

share of clean renewable energy by 2010, and to

meet Greece’s obligations under the Kyoto Proto-

col regarding greenhouse gas emission reductions

aimed at stopping climate change, the Greek govern-

ment introducedLaw 3468 in June 2006. This legisla-

tion regulates and encourages generation of electricity

from RES and has drawn from the achievements of sev-

eral EU member states, and in particular Germany,

Spain and Denmark, who are world wide pioneers in

the adoption of wind generation. Law 3468 has insti-

tuted incentives for renewable energy sources (RES)

electricity generation investments guaranteeing tariffs

at which RES energy can be fed into the electricity sys-

tem. Feed in tariffs per megawatt hour (MWh) were set

at 73 euros (on the mainland) and 84.60 euros (on the

islands) for wind, small hydro, biomass and geothermal

generation. Whereas these clean energy RES technolo-

gies are somewhat costlier than the average wholesale

market price of 60-65 euros per MWh which is estab-

lished in the day-ahead market by conventional gener-

ation technologies, solar energy conversion to electrici-

ty by photovoltaic (PV) systems remains much more

expensive. As a result, interest in investing in PV sys-

tems had been absent prior to passing the new law.

To familiarize Greek society and industry with PV

technology in expectation of anticipated technological

improvements and investment cost reductions that will

eventually render it competitive, and in recognition of

the abundance of solar energy potential in the country,

the new law has also instituted higher feed in tariffs for

PV electricity generation guaranteed for 10 years with

the option to renew contracts between PV system own-

ers and the electricity market operator for an addition-

al 10 years. These tariffs range from 400-500 euros

per MWh depending on size and location. A target has

been set for an installed PV capacity base of 700 MW

by 2020.

Small as well as large investors are already

responding vigorously. Production license applications

are being filed at a rapid rate, promising rapid progress

toward meeting the 700 MW target before 2020. The

Greek Regulatory Authority for Energy (RAE) has pro-

posed and the minister of development issued in April

2007 a ministerial decree approving a program that

aims at spreading the installation of PV capacity

throughout Greece. The decree has set a target of 500

MW on the mainland and 200 MW on the non-inter-

connected islands. Details (available at RAE’s website,

www.rae.com) on the geographical distribution and

size categories were decided on the basis of regional

electricity consumption and system stability needs,

solar radiation, temperature, and the desire to promote

dispersed PV generation, including small and medium-

size PV installations that do not exceed 150 MW each.

The licensing time schedule intends to take advantage

of expected advances in the effectiveness of PV tech-

nology and to attain a gradual impact of feed in tariff

subsidies on the cost of electricity to consumers. With

the currently available PV technology, the cost of build-

ing 700 MW of PV capacity capable of providing 1 per-

cent of total electricity consumption, is in the order of

4 billion euros, a formidable sum that will draw invest-

ment subsidies from the European Community Support

Framework (CSF) in addition to the performance-based

feed in tariff subsidies that will have to be borne by

electricity consumers.

Past experience with solar thermal energy conver-

sion for water heating has been particularly positive. A

combination of government policy and measured incen-

tives have allowed the Greek solar water heater indus-

try to grow to a subsidy-free industry that is providing

environmental benefits at competitive prices, and to

establish itself as a major exporter of international

standing. Wind park-generated electricity is close to

becoming cost competitive and to providing clean, CO2

emissions-free energy to the European Community.

One wishes that in the not-so-distant future, we will be

able to tell a similar success story with the PV technol-

ogy for solar energy conversion to electricity which is

being developed today in the European Union. It is this

vision that justifies the effort and expense undertaken

today to promote PV technology.

Michael Caramanis

Chairman, Regulatory Authority

for Energywww.rae.gr

ThemesElectricity generation from renewable energy sources (RES) has been increasing rapidly inGreece during the past few years. Installed capacity stands today at 4020 megawatts (3,100MW large hydro, 790 MW wind, 90 MW small hydro and 40 MW other RES). Last year, 14.1percent of electricity consumption, 7.6 terawatt hours, was provided by renewable sources.

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Themes

‘Develop regionally, compete globally’

Vassilios Makios

General Manager of Hellenic

Technology Clusters Initiative

Vice Chairman of the Athena

Research Centerwww.htci.gr

The Hellenic Technology Clusters Initiative (HTCI) creates innovative clusters that candrive economic growth. It brings together people, companies and technology andcreates an environment where innovation can flourish.

In today’s competitive world, cross-industry syn-

ergies and collaborations have become a neces-

sary core competency, making clusters of com-

panies increasingly important. The Hellenic

Technology Clusters Initiative (HTCI) creates

innovative clusters that can drive economic growth. It

brings together people, companies and technology

and creates an environment where innovation can

flourish. This recent but aggressive initiative facilitates

the formation of innovation clusters capable of com-

peting at an international level, and helps attract for-

eign direct investment, making Greece a value-added

services market player. It is the result of the common

vision of the Hellenic Ministry of Development, the

Athena Research Center and entrepreneurs, with the

aim of fostering home-grown innovation.

HTCI’s first cluster was initiated in collabora-

tion with the Hellenic Semiconductor Industry

Association. The Microelectronics and Embedded

Systems Cluster is the first innovation cluster in

Greece. It leverages as a reference point the Micro-

electronics Innovation Center in Maroussi, Athens,

which is a center of activity for more than 20 com-

panies active in the field with a significant pres-

ence in key global markets. Among them are

4Plus, Alma Technologies, Analogies, Antcor,

BlueDev, Bytemobile, Diaplous, GDT, Globetech,

Helic, inAccess Networks, Micrelec, Sciencis,

Theon, Theta and Unibrain.

Our objective is to ‘develop regionally and com-

plete globally,’ through successful business efforts

that leverage qualified human capital and the abil-

ity to launch partnerships in areas of complemen-

tary expertise. ‘Complementarity’ is the key word.

Clusters provide the ideal platform for innovative

companies to develop complementary activities,

increase their exports and become more profitable

through the promotion of competitive products in

the global market.

And this is the right time for Greece to claim a

significant role in the global technology market.

Greece has a good track record in research and

technology development, particularly in the fields

of electronics engineering, microelectronics, com-

puters and telecommunications. In fact, Greece

contributes significantly to the research capacity of

the European Union, with strong assets in terms of

qualified researchers, but has yet to exploit its full

business potential. Providing the necessary frame-

work that can encourage and drive research in key

technology areas is crucial for Greece’s sustainable

growth. This has been one of the primary objec-

tives of the Ministry of Development, which

embraced and supported HTCI’s efforts from the

beginning.

Tied up with practical applications and com-

mercial needs, R&D is fundamental for the growth

of Greece’s economy and the creation of new and

attractive employment opportunities for the coun-

try’s youth. With the motto ‘Joy of Creation,’

HTCI’s goal is to create an attractive environment

for the country’s most promising graduates and

enable them to reach their full potential. Greece

has made impressive leaps forward over the past

years. Now, it needs to refocus its research efforts

in areas where R&D commercialization can flour-

ish, thus allowing innovative ideas to become real-

ity — a reality that is commercially viable and can

form the basis for the launch of successful prod-

ucts and businesses.

These are critical steps in Greece’s overall effort

to become a competitive economy and an attractive

market for foreign investments. There are rapidly

growing companies in Greece that have sprung from

the creativity, drive and entrepreneurial spirit of

promising researchers and businessmen who pur-

sued their dream and believed in their potential to

develop regionally and compete locally. At HTCI,

we believe that this goal can be achieved only if

R&D investment is increased in areas where Greek

scientists, researchers and entrepreneurs can excel

at a global level. With the creation of the Micro-

electronics and Embedded Systems Cluster we have

proved that there is Greek home-grown innovation

that can undoubtedly compete in demanding mar-

kets in North America, Europe and Asia.

Greece contributes significantlyto the research capacity of theEuropean Union, with strongassets in terms of qualifiedresearchers, but has yet to exploitits full business potential.

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Facts & figures

Greece’s Consumer Price Index was at 2.6 percent year-on-year inMay with the EU-harmonized inflation rate at the same level (2.6

percent) for the same month, according to figures provided by theNational Statistics Service. The table also shows that gross domestic

product expanded by 4.6 percent, on an annual basis, in the firstquarter of the year.

Period Value

Consumer Price Index (CPI) (1) May 07 / May 06 2.6

Harmonized Index of Consumer Prices (HICP) (1) May 07 / May 06 2.6

Producer Price Index in Industry (1) April 07 / April 06 1.4

Industrial Production Index (excluding construction) (3) April 07 /April 07 0.2

Turnover Index in Retail Trade(1) March 07 / March 07 7.2

Gross Domestic Product (provisional data) (1) Q1 2007 4.6

Unemployment Rate(2) March 2007 9.5

Population (2001 Population Census)(4) 2001 10,964,020

Building Activity (volume) (3) March 07 / March 07 -4.7

1Annual rate of change, 2Rate, 3Periodical rate of change, 4Value

Latest Statistical Data

The profile of the Greek economy

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Facts & figures

Travel & tourism is a high-growth activity, which is forecast to increase its total economicactivity by 4.2 percent per annum worldwide in real terms over the next 10 years.In the European Union, travel & tourism is expected to post average annualized gains of3.5 percent between 2007 and 2016. For Greece, travel & tourism activity is expected to grow by ( 4.0 percent ) per annum inreal terms between 2007 and 2016.

High-growth activity

2006 2016bln euros % of total Growth1 bln euros % of tot Growth2

Personal Travel & Tourism 15.0 11.7 2.6 27.2 11.9 3.5

Business Travel 1.6 — 3.6 3.0 — 4.0

Government Expenditures 2.4 8.0 0.4 3.3 8.2 0.7

Capital Investment 6.4 14.3 3.0 12.9 14.8 4.5

Visitor Exports 10.9 26.8 3.8 21.3 24.7 4.3

Other Exports 0.9 2.3 8.5 2.6 3.0 8.3

Travel & Tourism Demand 37.2 — 3.1 70.3 — 4.0

T&T Industry GDP 14.0 7.3 4.5 26.3 7.6 3.9

T&T Economy GDP 31.3 16.4 4.0 59.2 17.2 4.0

T&T Industry Employment 449.1 10.3 3.4 601.5 10.3 3.0

T&T Economy Employment 867.2 20.0 3.5 1,215.7 20.9 3.4

1. 2006 real growth adjusted for inflation (%) 2. 2007-2016 annualized real growth adjusted for inflation (%) ‘000 of jobs

Source: World Travel & Tourism Council

Greece estimates and forecasts

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With figures from the World Travel & Tourism Councilshowing estimated real growth of 4 percent between2007 and 2016 for Greece’s travel and tourism activity,one realizes the growing role of the country’s tourismindustry in the economy.

It was on the subject of this vital role that GreekEconomy and Markets ’07 contacted some of the sec-tor’s top experts and asked them to share their views onfuture trends and ways to keep ahead of the growingglobal competition.

Among the messages to come out of the contribu-tions was the need for Greece to move ahead withchanges, such as the rebranding of its tourism product.

An interview with Eulogio Bordas, president of THR,highlights the need for Greece to ‘invent’ new advan-tages for tourism.

Contributions from Tourism Minister Fani Palli-Petralia and the head of SETE, Stavros Andreadis, under-line the need to move away from the ‘sun and sea’ for-mula that worked so well in the past but which is alsoprovided today by cheaper competitors.

Another message to come out of these contributionsis that the sector is doing well but more work is alsoneeded on the infrastructure front.

The hosting of the Athens 2004 Olympic Gamesinevitably features in this edition as the country takessteps to capitalize on hosting the world’s largest sport-ing event.

The interest shown by private companies in leasingthe expensive venues has been strong and indicatesthat many of the facilities — some of which are seen tobe among the best in the world — will be leased out forperiods with a minimum of 20 years.

These contributions and articles will enable readersto reach a positive conclusion about the sector; howev-er, there is also the feeling that the sector is highly sen-sitive and its policy needs to be the result of careful jointplanning.

Stelios Bouras

Tourism: The country’seconomicheavyweight

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Cover

By Maria Vasileiou

New large-scale tourist complexes are in the

pipeline in Greece. Despite facing delays,

when concluded they will create new des-

tinations mainly in Crete and the Pelopon-

nese. These new destinations will attract

more tourists, but also foreign individuals who are

interested in buying or renting a holiday home, as

most of these destinations will combine hotel facil-

ities and residential complexes. This new trend,

following the hotel renovations undertaken a few

years ago in view of the Athens Olympics, is

expected to set Greek tourism infrastructure on a

new footing. At the same time renovations are

always under way.

R A new ‘destination’ is in the making

in the Peloponnese:

Shipowner Vassilios Konstantakopoulos’s life dream

is coming true. The creation of an exceptional

tourist complex in his homeland Messinia in the

southwest Peloponnese is finally under way. The

first stage of this development with a budget of 325

million euros includes four hotels, a spa and a con-

ference hall. Total investment for the whole project,

which includes three stages of development, is esti-

mated at 900 million euros.

‘There are three types of people: those who can-

not afford to implement what they dream; those,

who have the means, but have no dreams; and

those who can do both — dream and afford to make

them happen. I believe that the latter ought to act

to fulfill their dreams.’ Thus said shipowner Kon-

stantakopoulos on the day he received the Greek

Chamber of Hotels award for the exceptional devel-

opment that is under way in the area of Pylos in

Messinia. The project will include luxury hotels, golf

courses, residential developments, a spa and con-

gress halls spread across a huge area.

The idea for such an outstanding investment

was born 25 years ago, said ‘Captain Vassilis,’ as

his friends call him. Having achieved a successful

presence in shipping, he thought he should turn his

attention to the land. He started accumulating

small areas of land, buying them one by one in his

hometown of Pylos. To date, he has bought land

from a total of 1,280 owners. The new resort,

under the name Navarino Resorts, is considered to

be a milestone for the area’s tourist development. It

is expected to create a new destination in the

Mediterranean, given that problems relating to

recently spotted archaeological finds will be

resolved. The project is due to boost tourism not

only in Messinia, but in the whole of the Pelopon-

nese. It is planned to function throughout the year

and extends along two beaches, 1,000 meters long

each, in the areas of Pylos and Romanos. The

development in Pylos will be named Navarino Bay

and the one in Romanos, Navarino Dunes.

Navarino Dunes: This part of the complex will

be developed over an area of 1,300 square kilome-

ters in the region of the municipalities of Gar-

galianon and Nestoros. It includes two luxury

hotels, the first consisting of 320 rooms (769 beds)

and the second 445 rooms (1,114 beds), a confer-

ence hall of 1,200 seats, a spa, a sports center, an

18-hole golf course and a golf academy.

Navarino Bay: This part of the complex will be

Large-scale future investments

Large-scale investments by Greek and international entrepreneurial groups are one stepaway from being materialized. These investments which refer to large-scale touristcomplexes are going to change Greeceãs tourism market completely.

The gateway to economic development in Greece is built on

tourism. Greek tourism contributes 18 percent to the coun-

try’s gross domestic product. That is why today’s government

and the Ministry of Tourism have set high goals for the sector. Our

aim is for Greece to achieve one of the highest positions in the

world tourism rankings.

The 2004 Olympic Games were a major landmark for our

country and redefined its position on the world map. Greece

proved that it is not just a beautiful country but also a strong, hos-

pitable and safe European country with excellent infrastructure

and venues.

Last year was a particularly good one in terms of visitor num-

bers and income. To date, our estimates predict that 2007 will be

even better.

One of the major targets of the Ministry of Tourism is to extend

the period of tourism to all 12 months. Within the framework of

our policy, we are promoting new tourist products which meet the

demands of the contemporary tourist.

Regarding the development of tourism, a series of steps have

been taken to promote Greece as a tourist destination and to

increase the number of visitors.

The 2007 advertising campaign, sending out the message

‘Explore your Senses,’ targets countries and specific groups of vis-

itors with various types of tourism. For the first time our country

is being promoted worldwide on the internet through the Yahoo

portal, which is visited by 500 million users from all continents.

More specifically, summer holidays, city breaks, conference sites,

agritourism and ecotourism are promoted. It is worth mentioning

that Greece is the first country in the world to conduct such an

extensive advertising campaign on the World Wide Web.

Recently the official Ministry of Tourism and Greek National

Tourism Organization (GNTO) websites were updated and can

now be read in seven languages. Chinese and Japanese will soon

be added.

In order to provide the most up-to-date

information and the best service, five new

GNTO offices will soon open abroad. These

will be in Warsaw, Sofia, Belgrade, Dubai

and India. The Cyprus office is ready.

Collaborations with other ministries

have been particularly constructive. For

example, in cooperation with the Ministry

of Transport and Communications, the

number of airports which operate around the clock were increased

and airport taxes were decreased from October to March. Our col-

laboration with the Environment Ministry was especially produc-

tive. The bill for district land planning has already been prepared,

in which all of the Ministry of Tourism’s suggestions have been

accepted. We are also working together on wind parks.

One impressive work in progress is the connection of Athens

to the sea by creating a 42-kilometer bicycle and pedestrian path

from Microlimano to Varkiza, linking all Olympic venues and other

activities. This is a project that will change the identity of Athens,

as well as Attica. The construction of the Olympic complexes in

Faliron and Hellinikon and the marina at Aghios Kosmas was the

beginning of approaching the coastal area as an open space,

accesible to all citizens. Plans to develop Olympic properties,

combined with our goal to connect the coastal zones will perma-

nently change the face of the city. We all deserve to live in a city

in which we can breathe, walk, exercise and be entertained,

enjoying quality of life on a daily basis. This is the bet we have

made and need to win.

Greek tourism today is on a strong growth trajectory. We

believe in the potential of our country and we believe in Greek

tourism. By all working together we can elevate it to the level it

deserves.

Fani Palli-Petralia

Minister of Tourismwww.gnto.gr

A dynamic growth

trajectory

developed within the municipality of Pylos over an

area of 1,450 square kilometers. It consists of two

luxury hotels, one of 119 rooms (298 beds), which

will also feature conference halls and a spa. The

other hotel will include 226 rooms (570 beds) and

will also feature conference facilities, a spa, golf

course and general infrastructure.

During the second phase of development

Navarino Dunes will be enriched with two complex-

es of furnished apartments consisting of 268 rooms

(868 beds) and 220 rooms (742 beds) respective-

ly, while additional infrastructure will be construct-

ed. As far as Navarino Bay is concerned, plans

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14

Cover

include the extension of one of the hotels south-

wards by an additional 106 rooms (271 beds) and

extra infrastructure.

During the second phase of development, plans

include the construction of residential complexes in

Navarino Dunes (120) and in Navarino Bay (200).

Finally, the development of a third hotel complex

will take place at a later stage. This complex will be

located in the area of Rizomylon within the munic-

ipality of Petalidi on the Messinian Golf. It will be

spread over an area of 1,275 square kilometers and

will include luxury hotels of 3,000 beds (1,200

rooms), a conference hall, spa, golf course, general

infrastructure and 160 residences. According to

reliable sources, two world-famous hotel chains are

more likely to undertake the management of the

hotels, which will be completed during the first

stage of development.

R A 1.2-billion-euro investment on eastern Crete:

The construction of an exceptional tourist develop-

ment, Kavo Sidero, by the Minoan Group (former

Loyalward), budgeted at 1.2 billion euros, was due to

start in May, but due to protests raised by local envi-

ronmental organizations, it will be delayed until the

case is settled. The company was set up 12 years

ago, but it only recently managed to get the Greek

government’s approval concerning the project’s envi-

ronmental study. Yet it is facing another delay due to

reactions by local environmentalists.

According to Minoan Group Director Christopher

Egleton, the development will include six tourist vil-

lages of 7,000 beds, two golf courses, a conference

center, a marina and a residential complex. Accord-

ing to the original plan, the first stage of development

was due to finish in 2009, and the whole project

would have been completed by 2017. When com-

pleted the complex will cover an area of 25,000

square kilometers, which is owned by the Toplou

Monastery. Minoan has leased the land for 40 years

with an option of another 40 years. The development

will cover 1 percent of the total land, despite the pos-

sibility of building up to 10 percent of the area. So

far, total investment has already reached 27 million

pounds (40 million euros). According to Minoan, the

development of this complex will create 2,300 new

jobs, and another 1,000 are expected due to spinoff

effects. The complex will operate throughout the

year. The company aims to create a ‘green’ resort.

Materials used will be environment friendly and a

desalination unit will provide most of the water need-

ed, while two biological cleaning units, water-recy-

cling systems, as well as solar and energy saving sys-

tems will be installed. Mr Egleton stressed that spe-

cialized studies have been conducted to ensure that

the area’s environment will be protected.

R Investment will reach 50 million euros

at Astir Palace:

A new three-year investment plan is under way at

Astir Palace, backing an extensive renovation, which

will lead to the creation of one of the most luxurious

resorts in the Mediterranean. The plan, which is due

to finish by the end of 2009, is estimated to exceed

50 million euros.

Astir Palace, located on the Athenian Riviera, con-

sists of three five-star hotels. In July 2006 Starwood

Hotels & Resorts raised its Luxury Collection flag on

the Arion hotel and the Westin flag on the Nafsica

hotel. In 2008, the third hotel of the resort, the

Aphrodite, will become a W hotel, following renova-

tion. It aims at attracting young clientele. United

Designers, a company based in London, will under-

take to redesign the hotel according to the W concept.

This development is part of the three-year plan,

which, according to the resort’s deputy CEO,

Polichronis S. Griveas, also includes a new spa,

which is in the area of Arion and started operating a

few weeks ago, a renovation plan of 76 bungalows,

which is also under way, aiming at offering sophisti-

cated and comfortable rooms. These will feature

modern facilities suitable for premium customers,

while some will also have private swimming pools.

Renovation of the 76 bungalows will begin in

September, while completion is expected in May

2008. The project also includes the creation of a new

congress hall, covering an area of 3,000 square

meters, to open in mid-2009.

Starwood Hotels & Resorts, which has undertak-

en management of the operations of Astir Palace,

aims at attracting high-profile international clientele

as well as hosting a large number of congresses. It

also plans to boost demand from the Greek market.

The resort complex is owned by Astir Palace

Vouliagmeni SA, which is publicly traded on the

Athens Stock Exchange. Sales reached 25.9 million

euros in 2006 up 16.1 percent compared to the

previous year.

R Two multimillion projects

in Aghios Nikolaos on Crete:

Iktinos Hellas recently sold its majority holding of

Iktinos Techniki & Touristiki to Dolphin Capital

Investors. The company is well advanced in gaining

all necessary official paperwork and clearances for

its investment plan, an integrated company-owned

hotel development with an area of 76 hectares in

Ormos Faneromenis, which is close to Aghios Niko-

laos in eastern Crete. Initial estimations for this

investment reach 80 million euros and include the

construction of a hotel complex, a conference cen-

ter and spa. Three-hundred luxurious villas are to

be built during the first phase of development. An

additional adjacent 270,000 square meters, which

is also company-owned may be included in the

future. One or two 18-hole golf courses are to be

developed in the second phase. Around the golf

courses another housing development is planned.

According to plans, each villa will stand at an alti-

tude of 150-250 meters and will therefore enjoy a

panoramic view of the Aegean Sea.

J&P Development is also moving ahead with anoth-

er development in the same area, over 400 hectares.

This project also includes hotel units, villas, golf cours-

es, spas and conference centers. Cypriot entrepreneurs

Efthivoulos Paraskevaidis and Dakis Ioannou are

expected to invest 400 million euros in this initiative.

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Cover

According to recently reported data, the contribution of tourism to

the Greek economy exceeds 18 percent of the country’s gross

product and contributes 840,000 jobs, representing about 20 per-

cent of nationwide employment. In terms of per capita spending, as per

reported data for 2005 of the World Tourism Organization and the

Bank of Greece, Greece held 10th place in the world rankings with

US$1,073 per tourist, higher than Greece’s direct competitor countries.

While in terms of competitiveness the Greek economy ranks 47th in the

world, in tourism Greece occupies 24th place in the list of travel and

tourism competitiveness.

In data provided by the World Tourism Organization, it is also

reported that worldwide international arrivals in 2007 are expected to

increase by 4 percent. The corresponding forecasted increase in Europe

is expected to reach 3 percent. The above statistical data were repro-

duced at this year’s Annual General Assembly of the Association of

Greek Tourism Enterprises held in Athens at the beginning of May.

The Greek tourist product competes with that of many countries

and I would attempt to define it in a broader sense as whatever

comes to the minds of people when they think of Greece. What we

offer visitors is not just sun, beaches and archaeological sites, but a

vast and multicolored variety of old and new, classic and contempo-

rary. It is our continuous effort to enhance the quality of the tourist

product we offer. Our company operates modern and fast ferries to

the Greek islands with the most frequent sailings to the island of

Rhodes and the well-known Cycladic islands of Myconos, Paros and

Santorini in the Aegean Sea and less frequent sailings to smaller

islands. We are pleased to note that in recent years Greek govern-

ments have taken the right steps toward the further development of

tourism in Greece. More particularly, concerning domestic ferry links

to the islands, the present government has taken some very impor-

tant steps in compliance with the respective European regulation.

The liberalization of fares on the majority of Greek domestic routes

— with the exception of certain smaller remote island destinations

where special provisions of service apply — in May 2006 represents a

step closer toward the harmonization of the Greek regulatory framework

with European Regulation 3577/92 on maritime transport within EU

member states. As a result of this decision, companies in the sector are

now able to apply a flexible pricing policy based

on supply and demand, aiming at the expan-

sion of their customer base and dynamic yield

management throughout the year.

Developments in past years have resulted in

the upgrading of services offered, through the

introduction of newly built or comparatively

new ferries, as well as the considerable

improvement of the services offered by older

ferries. Some 60 percent of passengers who

traveled in the Aegean in 2006 did so on ferries under 10 years old.

There are still many issues to be resolved before a fully liberalized

environment of operation is in place, such as crew employment on ves-

sels, arrival and departure scheduling, ships’ general arrangement plans

and the improvement of inter-island services. As per our estimates,

there has already been a five-year setback in developments, largely due

to our anachronistic legislation whose updating is unavoidable yet

delayed for no apparent reason. The need for new investments is not

temporary but continuous.

Another step closer to the harmonization of the Greek regulatory

framework regarding maritime transport with the rules of international

shipping was the abolition in July 2006 of the age limit applying to ves-

sels employed in the Greek domestic market on the condition that they

conform to high safety standards. This means that the economic life of

the ship, much as in the case of aircraft, is determined by its quality,

technical specifications and maintenance as long as it yields the expect-

ed returns and not by a terminal ceiling regardless of other parameters

which as a result limited the investment horizon in any given vessel and

led to its faster deterioration.

Alexander Panagopulos

CEO of Attica Groupwww.attica-group.com

Greek tourism

aiming higher

R Investments in Magnesia will attract

more tourists to the area:

In Magnesia, the local office of the Hellenic Ministry of the Environment, Physical Plan-

ning and Public Works of the Thessaly region has recently examined a study on the envi-

ronmental implications of the potential development of a five-star hotel complex of 999

beds and concluded favorably. The hotel is to be built on a piece of land that belongs

to the Metropolis Dimitriados, in the area of Nies within the municipality of Sourpis, and

will include desalination and biological waste management units.

Yet another project is to be constructed in Magnesia by the Paraskevaidis Group.

The name of the development will be Apollo Resort. Aimed at attracting premium clien-

tele throughout the year, the investment will reach 210 million euros. The development

will include the construction of a five-star hotel with a capacity of 300 beds, villas, a

spa, an 18-hole golf course, a conference center of 1,100 seats and a marina.

R Last but not least:

In Zakynthos, the Swiss company Swiss Golf Invest AG is putting forward another large-

scale hotel complex investment plan, under the name Hotel Gold of Zante (Premium

Golf Club). This initiative is expected to reach 53 million euros and includes two golf

courses (one of 18 holes and the other of nine holes), a golf clubhouse, a five-star hotel

with a wellness and spa center as well as premium villas designed by Swiss architects

according to the highest technical specifications and aesthetic standards.

The Fotiades Group, a group of Cypriot interests, has put forward a proposal through

its company Emerald, for a 330-million-euro investment in Triopetra in the municipali-

ty of Lampi in the Rethymnon region of central Crete, and is currently waiting for the

necessary official paperwork.

18

Cover

Maintaining growthby improving competitiveness

Stavros Andreadis

Board Chairman

Association of Greek Tourist

Enterprises (SETE)www.sete.gr

According to the United Nations World Tourism Organization, in 2005 Greece held 11thposition in the world in terms of tourism receipts and was 16th in terms of intenationaltourist arrivals.

It is well known that tourism in Greece is an

important sector, both with regard to the econ-

omy as well as to society in general. Specifical-

ly, Greek tourism contributes about 18 percent

of the gross domestic product, taking into con-

sideration its multiplying factor in the economy as a

whole. Moreover, the amount of tourism receipts

(11.3 billion euros for 2006) surpasses the total

amount of Greek exports (for both products and serv-

ices) and covers 30 percent of the deficit on the bal-

ance of foreign payments. Greek tourism employs

approximately 830,000 people, both directly and

indirectly, who mainly work in the provinces and in

small and medium-sized enterprises.

On the global scene, Greek tourism retains a

strong position. According to the United Nations

World Tourism Organization, in 2005 Greece held

11th position in the world in terms of tourism

receipts and was 16th in terms of international

tourist arrivals. Considering the small size of

Greece compared to our competitors, these results

certainly point to the existence of a unique and

attractive core tourism product. If we manage to

increase the added value on the core product,

overcoming at the same time long-lasting issues

such as the seasonality of demand and the con-

centration of tourism supply, we will create the

conditions for further tourism development. More

than 50 percent of our international arrivals come

during the trimester of July-August-September and

the majority of hotel beds can be found in just

three prefectures of Greece (Crete, the Dodecanese

and Sterea).

Now the challenge is to maintain the growth

rate of previous years by improving our competi-

tiveness. Competitiveness is something relative. It

refers to our ability to operate more efficiently and

more profitably compared to the competition.

Therefore, we should always bear in mind that it is

not enough to simply improve ourselves from year

to year; it is imperative that we achieve higher

improvement rates than the competition.

Let me remind you that the tourism product, all

over the world, in contrast to the industrial or agricul-

tural product, is the sum of services provided by many

components of both the public and private sectors.

The adequacy of each component obviously defines

the quality of the final product and as a consequence

decisively influences the total tourist experience.

Our strategic course cannot be anything else but

the enhancement and enrichment of quality in order

to improve our tourism supply. Developing tourism

infrastructure, capitalizing on the legacy of the

Olympic Games, using our unique public property,

motivating the decommissioning of old hotels that

can no longer be upgraded, building up the quality

classification of our tourist products and services

and implementing new technologies are some of the

issues we have to deal with.

At this point, it is important to refer to the ben-

efits of organizing the Olympic Games in Athens in

2004. Our country enjoyed great recognition and

increased its awareness globally. During the

Games, we showed a different, more attractive

image of Greece to the whole world. Athens pre-

sented a modern, friendly face with efficient infra-

structure. We worked hard to achieve that, but we

need to work even harder to capitalize on the

legacy of the Games and expand this to benefit

the country as a whole, although we are already

quite late.

In order for Greek tourism to develop in the

post-Olympic era, it is essential to have a concrete

vision combined with a clear strategic course and

goal in a fixed time frame. Without doubt, we need

to reposition both Greece and destinations within

the country in order to improve our competitive-

ness. The question is how to continue in order to

achieve this goal.

The fact is that Greek tourism will not be able

to evolve any further if we try to sell just the basic

product of ‘sun and sea,’ a product nowadays

offered much more cheaply by our competitors.

The competition is tough and will definitely

increase in the near future. The viability and prof-

Developing tourism infrastructure,capitalizing on the legacy of theOlympic Games, using our uniquepublic property, motivating thedecommissioning of old hotels thatcan no longer be upgraded,building up the qualityclassification of our tourist productsand services and implementingnew technologies are some of theissues we have to deal with.

19

itability of our tourism enterprises will increase in

complexity and it will become harder for them to

succeed. The Association of Greek Tourist Enter-

prises (SETE) has always been a supporter of cre-

ating a marketing plan for Greek tourism as a

whole and this has to be done as soon as possible.

It is crucial to differentiate the portfolio of Greek

tourism products and develop a branding system

for Greek tourism. Clearly positioning Greek desti-

nations and Greek tourism products is essential.

The Ministry of Tourism Development is currently

working on a strategic marketing plan for Greece

with an international consultant. We hope that this

practice can be extended to include the whole

spectrum of Greek tourism and we will be happy to

see more international consultants, more experi-

ence and more knowledge in its management.

Apart from the marketing perspective that Greek

tourism requires, there are several issues that also

hold back tourism development. The most impor-

tant is the fragmented structure of tourism on the

part of the state that hinders the coordination,

effectiveness and implementation of the tourism

policy. International practice shows that 90 percent

of all national plans for tourism development are

only partially implemented or not implemented at

all. The main reason for this is that each ministry

responsible for tourism influences the factors that

form tourism competitiveness to a very small extent

(approximately 20 percent). The rest (80 percent) is

the domain of other ministries and organizations

from the wider public sector. We need to build up a

strong and flexible tourism structure, in terms of

organization and functions, that will be able to put

into practice the strategies for Greek tourism

beyond political groups and interests.

Another important issue that we need to

address is that of education. Education in tourism

is crucial. To improve education we must create

tourism studies departments in our universities.

Being able to deliver higher-quality services means

having managers of high standards and education.

SETE has already proposed the creation of three

tourism studies departments in the universities of

the Aegean, Crete and the Ionian. We were pleased

recently, when the minister of tourism develop-

ment announced that she has already started dis-

cussions with the minister of education in this

direction.

We hope that the government, having frequent-

ly declared that one of the major drivers of the

Greek economy is tourism, will define and acceler-

ate all necessary actions aiming at the increase of

competitiveness in the tourism sector.

It is crucial to differentiate theportfolio of Greek tourism productsand develop a branding system forGreek tourism. Clearly positioningGreek destinations and Greektourism products is essential.

20

Prospects and challenges

Greece is one of the world’s most estab-

lished and popular tourist destinations.

The country’s rich cultural and natural

heritage, good climate, hospitality and

lifestyle comprise strong competitive

advantages in terms of tourism.

Its strong and growing economy offers signifi-

cant prospects not only for visitors but also for

investments. Tourism constitutes one of the funda-

mental pillars of the national economy. In addition,

the economic growth and prosperity of several

Greek regions depend to a large extent on tourism

as it offers income and employment opportunities

and contributes to local and regional development.

Tourism has been growing apace in the last three

years, reversing past trends. The total direct and

indirect contribution of the travel and tourism indus-

try to the Greek economy in 2006 was estimated at

37.2 billion euros (or 16 percent of the total GDP),

while it is expected that in the next decade it could

almost double (WTTC, 2007). The dynamism of the

sector is evident in terms of employment as well.

Some 867,000 jobs can be attributed to tourism,

representing almost 20 percent of the total. In the

last three years (2004-2006) some 200,000 new

jobs were created in the private sector, of which

84,000 (or almost 42 percent of total new jobs)

were in tourism. This means that one out of every

five jobs is in tourism. Employment is expected to

increase further, reaching 1.2 million jobs in the

next 10 years or so. New capital investments in

tourism are also expected to double in the next

decade, reaching 13 billion euros (WTTC, 2007).

Greece is upgrading its position as an estab-

lished global tourism destination after the success-

ful organization of the 2004 Olympic Games, rein-

forcing its positive image and reputation as a safe

and ideal destination, redefining its tourist policy,

and seeking a new identity and brand.

The positive effects of the post-Olympic era are

evident not only in the established tourist destina-

tions, such as Crete, Rhodes and the other islands,

but also in cities, especially Athens and its region

(Attica). In the prefecture of Attica, hotel arrivals

for the year 2006 demonstrated 9.8 percent

growth. Five-star hotels experienced higher growth

of 12.5 percent, while four-star hotels reached 17

percent. This shows a shift in demand toward high-

er-quality services and the increasingly important

role of luxury hotels.

It is estimated that tourism will grow in the next

decade at an average of close to 4 percent annual-

ly (faster than the anticipated European rate and

close to the global average).

The Hellenic Ministry of Tourism was estab-

lished in 2004 as the competent authority for reg-

ulation, planning and programming, with several

executing agencies under its jurisdiction: the Greek

National Tourism Organization for tourism promo-

tion and licensing of tourism enterprises, the

Tourism Development Company for managing

tourist real estate, and the Organization for

Tourism Education and Training.

Tourism policy is considered part of a broader

strategy toward sustainable development. The big

challenge is to increase tourism’s competitiveness

and improve Greece’s position among global desti-

nations in various segments of the market beyond

‘sun and sea’ mass tourism. Two basic goals out-

line tourism’s strategy in the next period: to

upgrade of the quality of the tourist product and to

enrich/broaden the product.

Realizing tourism policy goals involves regula-

tion (and control), incentives, physical interven-

tions and promotion.

At present, Greece is developing a spatial mas-

ter plan for tourism to guide investment decisions

and provide guidelines for the type and intensity of

tourist development in touristic areas.

The marketing strategy for Greek tourism has

been redesigned, through a new promotion cam-

paign (more than 60 million euros per year), aim-

ing to strengthen Greece’s market share in tradi-

tional source markets but also to open up to new

emerging markets.

Besides the establishment of a national strate-

gic plan, procedures are also under way to coordi-

nate and take special measures for local and

Tourism policy, focusing increasingly on the country’s special characteristics, is playing ana large role in the country’s economy. It is considered to be part of a broader strategytoward securing sustainable development.

It is estimated that tourism willgrow in the next decade at anaverage of close to 4 percentannually (faster than theanticipated European rate andclose to the global average).

Cover

Professor Harry Coccossis

University of Thessaly

CEO, Tourism-Development Cowww.tourism-development.gr

21

regional development. Every destination has its

own special characteristics and diversified policies

must be adopted. Destination management is grad-

ually becoming an important tool for guiding

tourism growth and controlling its impact. Such

policies should be incorporated into a broader

strategy of sustainable development at the local,

regional and national level.

Tourism policy is increasingly focusing on the

enhancement and promotion of the special charac-

teristics of our cultural and historical heritage which

differentiate globally the Greek tourist product.

Global tourism is changing in many ways: grow-

ing demand for high-quality services, safety con-

cerns, development of niche markets, e-tourism,

low-cost carriers, the emergence of new source

markets and new destinations, shifting spatial

flows, increasing competition etc.

Greece is an established tourist destination with

strong competitive advantages. Its image has been

boosted substantially in the last few years. Several

courses of action are being taken to improve the

quality of the tourist product and strengthen the

country’s competitive position as a tourism destina-

tion and a place for investments in tourism.

In this effort Greece has to bring together all

those involved in developing and promoting the

tourist product (the public and private sectors,

tourist enterprises and associated services, infra-

structure development agencies, local, regional

and state authorities and society at large) toward

the development of a vision and a strategy for

tourism in a concerted course of action.

The big challenge is toincrease tourism’scompetitiveness andimprove Greece’sposition among globaldestinations in varioussegments of the marketbeyond ‘sun and sea’mass tourism.

The big challenge is toincrease tourism’scompetitiveness andimprove Greece’sposition among globaldestinations in varioussegments of the marketbeyond ‘sun and sea’mass tourism.

22

Dream Resorts Factory

— Holidaymakers today have the opportunity tochoose from among a variety of destinations. Asan expert in tourism marketing, why do you thinkthat certain destinations capture their interestover others? In other words, why would a holi-daymaker go to Italy instead of Spain, for exam-ple? What are holidaymakers looking for?

The destinations that triumph are those that offer

the tourist an excellent relation of value to effort.

‘Value’ is what we offer to the tourists: experi-

ences, feelings and quality of services. ‘Effort’ is

what we request from them: inconveniences, inse-

curities and price. Nevertheless, there are more

than 60 types of tourism — touring, sun & beach,

meetings, agritourism etc. In each one of these

cases, tourists are looking for distinct components

of value and evaluate the required efforts in differ-

ent ways.

— Countries with a large tourism sector, such asPortugal, Spain or Greece, make great efforts topromote their tourism. How would you describe asuccessful marketing mix? What is the role ofdirect advertising and does it really have animpact? Should a marketing plan create its owntrends or adapt to the prevailing ones?

A successful marketing mix is one that leads to

strategies that ultimately achieve the marketing

objectives. Nowadays, the majority of marketing

objectives in the world of tourism, like market pen-

etration, product development, better performance

of sales system, etc, aren’t achievable with the tra-

ditional tools. Advertising, for example, must be

managed very carefully, otherwise it can be less

effective. In contrast, emerging social media, such

as podcasts, wikies, specialized blogs, consumer

reviews etc, have been taking the leading role.

— How should we sell tourism today? By focus-ing on individual destinations or by promotingthe whole country? Which way is more success-ful and how can we achieve a good result?

Both are necessary. Nevertheless there is one thing

even more necessary: focusing on product types.

Eighty percent of European tourists no longer

choose destinations; rather, they choose types of

experiences. The destinations should focus on sell-

ing specific types of tourism and at the same time

sell their regions and the umbrella brand of the

country.

— Can we talk about ‘brand names’ in tourism?If so, then how do we create a successful brandname when it comes to a destination or a wholecountry? Which brands do you consider as suc-cessful in tourism and why?

Switzerland, Tyrol, Cote d’Azur etc are very power-

ful brands of tourism destinations. The process of

creating these kinds of brands is long and compli-

cated. Nevertheless, the way to manage them and

maintain their power in the long term is even more

complicated. I don’t know any tourism destination

that has managed to create a powerful brand in

less than five years. It takes the majority more than

10 years.

— Usually, successful international brandnames have a long history. They have the samelogo and characteristics for years and years. Isthat important for brands in tourism as well?

With more than 60 types of tourism — touring, sun & beach, meetings, agritourism etc —the need for a successful marketing mix is more imperative than ever. Focusing onindividual destinations, promoting a country as a whole and, more importantly, focusingon product types are key factors in order to sell tourism.

Cover

By Maria Vasileiou

Eulogio Bordas is president

of THR, a Spanish compa-

ny dedicated exclusively to

integrated solutions for

problems in tourism. He

graduated in economics from

Barcelona University and obtained

a diploma in hotel administration

at Cornell University. He has over

30 years of experience in tourism

consultancy and advising tourism

companies and destinations. He is

the founder of THR, having man-

aged and coordinated the most

important projects since the com-

pany was established. As a direc-

tor, he has implemented important

projects for 32 governments, 12

hotel chains, five tour operators

and 22 groups of investors and

international bodies such as the

WTO, EU, UNDP and IDB. He has

also overseen 23 marketing plans

for countries and important tourist

destinations, including the Tourism

Marketing Plan for Spain. His com-

pany created its own brand,

‘Dream Resorts Factory,’ under the

motto ‘We conceive unique resorts

and make them successful.’

Bordas has been appointed

tourism consultant to the Greek

Ministry of Tourism Development.

He is in charge of designing the

Tourism Marketing Plan for Greece.

Being an expert in tourism market-

ing, his interview is of interest to all

people involved in tourism, not

only in Greece, but also in other

countries and destinations where

tourism is a significant component

of their economies.

23

24

Cover

Keeping basic characteristics intact, so the cus-tomer can identify easily with the brand?

France has been communicating ‘the art of living’

for 15 years. Spain had been communicating ‘pas-

sion for life’ for eight years. Croatia has been com-

municating ‘the Mediterranean as it once was’ for

five years. That’s a good thing.

— Now you are involved in the way Greece pro-motes its tourism, what do you see as the coun-try’s comparative advantages over its competi-tors? Should each destination promote its owncomparative advantage? Should they invent anycompetitive advantages?

Greece has some very important comparative and

competitive advantages in a good number of

tourism sectors. Greece has to support them and,

above all, it has to invent new ones. These new

advantages have to be more closely related to the

software — meaning organization, services, experi-

ences etc — than the hardware — meaning infra-

structures, construction etc.

— Which countries should Greece be targetingin order to promote its tourism? How shouldChina be approached?

Modern tourism marketing is no longer organized by

countries. It is organized by types of consumers and

it is more focused on areas of high emissive capaci-

ty and good air connections. In fact, implementing

marketing activities in a whole country is not effi-

cient when the targets with more potential to travel

often are concentrated in few areas/regions. The

important appeal of China should be evaluated care-

fully. Its potential in the long term is higher than its

potential in the short term and it must be considered

that the Chinese do not travel for seaside vacations,

which is still the main sector of Greek tourism.

— Do you think that the practice of booking aholiday via the internet will prevail in the future?How could countries which have large tourismsectors respond to such a development? Whatare the difficulties of promoting a destination onthe internet and what are the benefits?

The internet is already the main source of informa-

tion for tourists, and online booking figures are dra-

matically increasing; this is why many national

tourism boards, such as those of the UK, Austria

etc, are already including reservation tools in their

webpages. A tourist destination that has no clear

and powerful strategy of marketing online will enter

a decadent phase within just a few years.

— European populations are getting older. Interms of tourism, they represent a market whichneeds special attention. How could a tourist des-tination attract this market? How could Greecedo it?

By giving them high value for less effort. That

means creating experiences for them, ensuring that

their emotional states will be highly positive and

developing products that are golden-years friendly.

— Destination countries would rather attractpremium clientele, but such an endeavor rarelysucceeds. Is it worthwhile for Greece to try toattract this market segment?

Every tourism destination can attract premium

clientele to a higher or lower degree. Various Greek

destinations are already succeeding in this sector,

and in general Greece has good opportunities for

luxury tourism and should invest in it.

— We are seeing the emergence of so-calleddynamic packages worldwide. Why are theyincreasingly favored by holidaymakers? Does thismean that holiday destinations should offer moreoptions to their customers?

Obviously. Dynamic packaging systems can provide

more flexible, easy, quick and cheap offers to the

consumer. It is essential for the tourism industry to

learn to capitalize on this interesting opportunity.

26

Cover

Greece re-branded as

AlexandrosKouris

PRC Group’s

Executive Director

Designate and

Head of the

Communications

Business Unit.

Since October

2006, he has co-

directed the

consulting team of

PRC Group, THR

and MRB Hellas

appointed to

advise the Ministry

of Tourism and

the Greek National

Tourism

Organization on

the domains of

Marketing,

Branding and

Communications.www.prc.gr

27

an “infinite experience space”

Until very recently, Greece has been primarily

promoted as the archetypal destination for

classical antiquities and summer holidays:

that is, where one goes to marvel at the

Acropolis and perhaps Delphi or Olympia,

and to either laze or party away on the beaches of

some picturesque Aegean or Ionian island. While

Greece certainly has tremendous strengths in these

offerings – arguably among the world’s finest – and

these offerings have been an important drawcard for

the nation up to the present, the sea and sun have

become a commodity, and new competition has aris-

en in this area. Moreover, clients nowadays demand

experiences, rather than mere products, from their

travels. To this end, it has become necessary for

Greece to expand its Destination Brand Image – that

is, its conceptualization as a destination in the minds

of visitors – in order to increase its market share.

The question then arises: how do we go about

doing this? The key to a successful brand expansion

strategy lies in reaching and convincing the trend-

setting opinion leaders: that is, the top 10% of those

traveling internationally for holidays, whose prefer-

ence and influence then trickle down to the remain-

ing 90% of travelers. These top decision influencers

– both journalists and travel specialists as well as

experienced travelers who provide or are elicited for

opinions by their peers – mostly comprise members

of the creative class, that is, those individuals who

are professionally occupied in creating and applying

new knowledge. As research indicates, they are driv-

en by the belief that they are the summation of their

lives’ stories, and continually crave new experiences

which allow them to define themselves in relation to

their peers. It thus becomes the imperative of

Greece to challenge these individuals’ preconceived

notions about the destination, or in other words get

them to “discover the Greece they don’t know.”

Greece can do this using its unique Point of Differ-

ence: its unparalleled diversity. Indeed, this diversi-

ty forms the foundation upon which the country’s

new positioning is to be created.

As Greece offers “unparalleled, largely-unknown

contrasts” – that is, an incomparable array of con-

trasts about which only a small segment of travelers

is currently aware – and the creative class, decision-

making traveler seeks new experiences with self-

transformational elements, Greece can be considered

the “infinite experience space” in which “unheard-of

stories simply unfold”. This, indeed, is envisioned as

the new brand essence of Destination Greece.

To support this initiative, very selective visitor

and experience imagery will be invoked. Visitor

imagery can be defined as depictions of individuals

employed in promotional materials such as posters

and brochures, videos and internet media. To rein-

force the brand essence, visitor imagery should

depict visitors from every walk of life, showing a

broad range of ages, ethnic and racial backgrounds,

and other demographic criteria. These individuals

will be engaged with all of their senses, living

moments of joy and surprise in the destination. The

experiential, intense atmosphere will be evident, with

all images contributing to the storytelling theme.

Experience imagery can be considered the ver-

bal counterpart to visitor imagery. Experience

imagery should, through its diction, “tell” these new

stories in beautiful, moving and real ways. Again,

deep and all-sensual experiences will be communi-

cated through evocative verbal imagery. For exam-

ple, one could craft the following example of experi-

ence imagery based upon the diverse offerings of

Samothraki: “Drift away to mysterious Samothraki to

explore the tallest mountain in the Aegean and sev-

eral dramatic waterfalls, wonder at the mystical

Sanctuary of the Great Gods, relax in the mineral

springs of Loutra and feel the multicultural vibe of

the Samothraki World Music Festival.” In this way,

creative class, experience-seeking travelers will be

drawn to live the distinctive stories they can create

only in Greece.

It remains now for these strategies to become

realities. To this end, ten implementation strategies

have been developed. Strategy One involves creating

new “on brand” expressions, that is, content which

accurately conveys aspects of the brand. Communi-

cations should employ the use the color, photogra-

phy, tone of voice and narrative according to these

specific paradigms. For example, the colors used in

promotional materials should accord with those nat-

ural colors which derive from Greek landscapes,

seascapes, cityscapes and natural products rather

than employ artificial concoctions mainly of the blue

color palette. Photography, for its part, should depict

individuals engaged in experiences rather than show-

case mere commodities, products or services. Narra-

tives should use vivid diction, showcase diversity and

contrasts at every turn, and use the tone of a peer-to-

peer, discerning traveler voice. Furthermore, themat-

ic concepts such as “Luminous Abandoned Monem-

vasia” and “Raisins: Warrior’s Feast” can be used to

better spark interest in the various offerings. Greece

can both source and motivate the development of

such content in various media channels by dissemi-

nating content and commissioning emblematic publi-

cations, among other means.

We have spoken thus far of Greece as a whole,

but the perception of the country as a whole is in

fact only one component of the entire destination

branding strategy. Indeed, Greece’s national brand

must function as an endorsement brand for nine ver-

tical product positionings - those of the seaside,

nautical, culture, Athens & Thessaloniki, nature,

touring, wellness, meetings and luxury sectors – as

well as a number of region, city and cluster brands.

This structure comprises Strategy Two, the adoption

of a brand architecture system. Various regions will

be able to participate in the promotion of various

sectorial offerings according to their particular infra-

structure and competencies, and it is recommended

that these regions assume easy-to-remember and

promote names for marketing purposes, such as “

Athens region” for Attica and “Macedonia-Thrace”

for the various administrative regions of Macedonia

and Thrace. Lastly, promotional communications

should follow a standard paradigm as regards page

layout, with each piece of promotional material

clearly showcasing the interrelation of sectors,

regions and clusters to the national brand via their

identity signatures.

Turning to direct human-to-human interaction

with prospective and current visitors, Strategy Three

involves the empowering of “on-brand” visitor serv-

ice. As good customer service proves insufficient to

meet the demands of the modern consumer, Greece

must go beyond this to offer branded customer (visi-

tor) service. Greek words should be employed for

simple greetings whenever possible, with various

sensory words and experiential vocabulary (in the

English language) used to further reinforce the brand

essence. An example of such on-brand communica-

tion could be the following: “If you want to experi-

ence something truly magical, I recommend “the

Gibraltar of Greece,” Monemvasia, where you can

immerse yourself into the ultimate romantic medieval

ambience reminiscent of the era of Knights: imagine

rambling among Venetian ruins, sampling delicious

cuisine, chatting with the local artists, and taking in

a spectacular view from atop the castle!”

Strategy Four involves aligning communications

with the visitor decision process. This comprises the

challenge of maintaining visitors’ interest during the

characteristically attritional process of moving from

knowledge (awareness) of the new brand to consid-

ering it among various available options to prefer-

ence and finally active intent to travel there. To do

this successfully Greece must go beyond brand com-

munication to product communication, as cam-

paigns for the former influence the knowledge and

consideration dimensions while campaigns for the

latter influence the preference and active intent to

travel dimensions.

Reaching the appropriate audiences for these

messages is the objective of Strategy Five, which

involves the selection of quality, innovative, influen-

tial and credible media and events. Tactics here

include targeting creative class, non-traditional and

special travel experience and activities media and

exhibitions, as well as creating “own media.”

Strategy Six delves deeper into promotional pos-

sibilities, considering the development of joint offer-

ings and exploitation of promotional opportunities

involving significant players that already have strong

relations with specific target groups, while Strategy

Seven investigates brand alliance strategies such as

co-branding and placement.

Strategy Eight involves the undertaking of initia-

tives to inspire the media community and generate

publicity, again focusing on the dissemination of

“on-brand” messages, while Strategy Nine calls for

the development of an “International Promotion

Opportunities” system for Greek tourism service

providers. Such a system could comprise industry

stakeholders’ individual promotion within the

national tourism promotion system as well as quali-

ty assurance initiatives.

Finally, Strategy Ten addresses visitors’ experi-

ences upon entering and exiting the country, calling

for such measures as info points, mobile info servic-

es and other means to “leave an aftertaste” of the

destination with the visitor.

With the implementation of these initiatives,

Greece can be successfully re-branded as a tremen-

dously diverse destination for experiential travel, and

thus enjoy increased market share for years to come.

28

Cover

Utilizing the Olympic legacy

SpyrosKladas

Secretary-General for the Olympic

Utilizationwww.ggoa.gr

The Hellenic Ministry of Culture / General Secretariat for the Olympic Utilization steered thecoordination of 10 ministries and on June 2005 the law concerning the Sustainable Growthand Social Utilization of Olympic Installations was enacted, providing comprehensive anddetailed guidelines, giving solutions and correcting shortcomings.

The repercussions of the Athens 2004

Olympic Games validated the expectations of

all Greek citizens for a better future. Every-

one in Greece valued the organization of the

Games, right from the beginning, as a huge

endeavor of national proportions. Greeks were proud

of the Games’ return to their birthplace and were all

committed to their success.

The next big challenge for the country was to

accelerate its growth, to further strengthen its

infrastructures and to reinforce its leading role in

Southeastern Europe.

Greece is now claiming its position at the core

of the European Union. This is being achieved

through the implementation of the strategic plan

laid out by the government, supporting reforms in

all policy areas, especially those of vast social

interest.

The Hellenic Ministry of Culture / General Sec-

retariat for the Olympic Games played a pivotal

role during the Olympic preparation period and

during the Games through its responsible depart-

ment, the General Secretariat for the Olympic

Utilization, and is leading the realization of the

post-Olympic project. The secretariat steered the

coordination of 10 ministries and in June 2005

Law 3342/2005, concerning the Sustainable

Growth and Social Utilization of Olympic Installa-

tions, was enacted, providing comprehensive and

detailed guidelines, offering solutions and correct-

ing shortcomings.

It is widely known that almost all venues built

for the Games were large permanent structures, by

decision of the previous government, a motion that

could have been partially avoided. This resulted in

the cost of the Games skyrocketing and rendered

the post-Olympic plan even harder, due to the

complete lack of appointing specific end-purposes

for each installation. Needless to say, the first pri-

ority was to define the use of each venue in the

most thoughtful way, aiming at long-term planning

with clear vision.

Olympic Properties SA undertook the responsi-

bility of executing the plan of the post-Olympic uti-

lization.

As a result, the majority of the venues were

designated for lease and development by private

companies for a minimum of 20 years through an

open call for tenders. The interest and participa-

tion of national and international leading compa-

nies has been immense. More specifically, up to

now the International Broadcast Center, the

Canoe-Kayak slalom venue, the Badminton Arena

and the Galatsi Indoor Hall have been contracted.

The total income will be 1.5 billion euros net pres-

ent value.

The tender for the Athens International Conven-

tion Center is in progress. The indoor hall, famous

for its inspiring design, will be transformed into a

ultra-modern mega-sized convention center. This

project is among the first public-private partnerships

to take place in Greece, setting an example for many

more to follow.

The Markopoulo Equestrian Center will be the

final Olympic venue to be leased out. A world-class

golf course will be located in just a few years' time

next to what is considered the most complete

equestrian center in the world.

The master plan for the post-Olympic period is

already proving viable. The expected inflow of sub-

stantial cash flow will fill the public coffers for

decades to come. On top of that, the municipalities

where the venues are located will receive consider-

able funds for the whole duration of the leases, beef-

ing up their budgets. Furthermore, one should bear

in mind that such a policy decision alleviates the

central government from very the high costs result-

ing from the maintenance, security and facility man-

agement expenses that all these venues carry.

On the other hand, it was a strategic decision for

the public sector to retain some of the venues under

its authority. It was our choice to invest more in the

state's infrastructures. As a result, the public sector

will be responsible for developing the Ano Liosia

The tender for the sailing center atAghios Kosmas will shortly comeup with the winning scheme. Afterthe completion of the investmentfor its upgrade, the marina will bea reference project for theinternational tourism market,accommodating more than 1,000boats and offering state-of-the-artinfrastructure.

29

Arena, where the Hellenic Ministry of Culture will

establish the Academy of Performing Arts. Such a

project will significantly upgrade the level of educa-

tion and training for the performing arts and will

reinvigorate the area. The Nikaia Arena will soon be

the new campus of the University of Piraeus, one of

the largest academic institutions in the country,

thus contributing to the advancement of the coun-

try's public higher education system. The local

community will benefit a great deal from this proj-

ect in a profound way.

The most prominent Olympic venue, the Athens

Olympic Sports Complex (OAKA), remains under

the authority of the state and hosts sporting (pro-

fessional and amateur), cultural and corporate

events. The same applies for the Peace and Friend-

ship Stadium. The Schinias Rowing Center will

serve as the third official European training center

assigned by the European Canoe-Kayak Federa-

tion. The operation of the Iraklion Stadium on

Crete is now assigned to the City of Iraklion after a

mutual decision by both Hellenic Olympic Proper-

ties SA and the local government. And of course,

with respect to the needs of society, we have dis-

tributed more than 2 million items used in the

Olympics all around the country. Thus a great

number of hospitals, welfare institutions, schools

and other social agencies have received useful

items, facilitating them in their missions.

As a tribute to the Olympic Movement and the

long historical involvement of Greece in the Olympic

Games, honoring the legacy of the Athens 2004

Olympic Games, the Hellenic Ministry of Culture /

Olympic Properties SA will inaugurate two muse-

ums: the International Museum of Athletics, after

exclusive licensing by the International Athletics

Federation (IAAF), and the Museum of the Hellenic

Olympic Games, both overlooking OAKA. These

museums will feature all the concepts of today's

museums and will inaugurate a new era in modern

museum perception.

During the past couple of years the govern-

ment's agenda has included as a priority the run-

ning of large-scale international events and can

now proudly host them with the utmost success.

Greece cherishes its cooperation with countries

around the world and shares the know-how

acquired from the organization of the Olympic

Games with whoever requests it. Over the past few

years we have closely engaged in transferring

Olympic know-how to the government of the Peo-

ple's Republic of China and in September 2007

the ‘Cultural Year of Greece in China’ will com-

mence. A series of events covering all the arts will

bring the two ancient cultures closer. Greece is a

hospitable country with friendly people, a country

that embraces the world and seeks all the opportu-

nities for that to be exhibited.

The integral post-Olympic project has created

thousands of new jobs, boosted the growth rate,

updated and amplified the country's infrastruc-

tures, enhanced the tourism industry, improved cit-

izens' quality of life in numerous ways and provid-

ed support for the arts and the educational system,

all with respect for the environment. Above all, the

plan promotes sustainable development. In a nut-

shell, with an Olympic momentum we are working

harder and delivering more, with respect to our cit-

izens' expectations.

32

11+ 2 comparative advantages

Over the course of the last few years, a dra-

matic structural transformation has perme-

ated the international economic field. The

globalization of markets and growing eco-

nomic interdependence, the use of new

technologies and the economic integration of groups

of countries have all resulted in a new international

economic environment.

This new environment has led to a transforma-

tion of our foreign policy, which is no longer simply

based on the traditional pillar of political diplomacy

— as in the Cold War era — but also on two new

pillars: a) economic diplomacy and b) international

development cooperation and humanitarian aid.

The liberalization of markets, the privatization

of antiquated state enterprises, the use of new

technologies and the development of entrepreneur-

ship comprise a new framework for economic poli-

cies. Businesses that are aware of the benefits

offered by an open, productive, flexible and social-

ly responsible economic system will inevitably

become the vehicles which will transport us toward

a remarkable growth rate.

We all recognize both the political and the eco-

nomic importance of Southeast Europe. We imag-

ine Greece as being at the center of a circle which

stretches around a large market of more than 340

million people with great business opportunities.

Over the last two years, almost all countries of this

region — including the countries of the Western

Balkans — displayed a high growth rate, amount-

ing to approximately between 5 percent and 6 per-

cent per annum.

Acknowledging the geostrategic significance of

our immediate neighborhood, Greece has consis-

tently encouraged the European perspective of all

countries of the region, namely the recent acces-

sion of Bulgaria and Romania and the rapproche-

ment of the Western Balkans with the EU. In

2003, during Greece’s presidency of the EU, we

took the initiative to foster closer links between the

Western Balkans and the EU, promoting the ‘Thes-

saloniki Agenda.’ As far as the Former Yugoslav

Republic of Macedonia (FYROM) is concerned, we

are encouraging our neighbor’s Euro-Atlantic per-

spective, on condition of course that the pending

issue of the name of that country will by then have

been resolved. Regarding Turkey, Greece has taken

the historical step of advocating this country’s

future entry into the European Union, when all cri-

teria that apply to all have been fulfilled by Ankara.

It is our firm belief that the European perspective

of the Western Balkan countries constitutes a very

strong incentive that can help guarantee the promo-

tion of democratic and economic reforms, leading to

the development and stability of our neighborhood.

The huge potential in the markets of SE Europe

is linked directly to the wider Black Sea region and

the rising markets of these countries. According to

Black Sea Trade and Development Bank data, the

real gross domestic product growth in the region

reached 6.1 percent in 2005. In this context,

Greece has been actively supportive of the Organi-

zation of the Black Sea Economic Cooperation

(BSEC).

We consider this organization as the most cred-

ible and comprehensive institutional expression of

multilateral cooperation in the area in important

fields such as transport, energy, good governance,

science and technology, and combating organized

crime and human trafficking. During our chairman-

ship-in-office, which took place between November

2004 and April 2005, we managed to reinvigorate

the organization by holding six ministerial confer-

ences, a success which was later capitalized upon

with the unanimous election of the new BSEC sec-

retary-general, Leonidas Chryssanthopoulos.

At this point, I wish to point out two of the most

significant regional projects undertaken by BSEC,

namely the extension of the ‘EU Motorways of the

Sea’ to the regions of the Black Sea and the Caspi-

an and the construction of the ‘Black Sea Ring High-

way,’ which we proposed be named the ‘Road of the

Argonauts,’ in accordance with the ancient legend.

These are large-scale construction projects,

from which almost all sectors of the economies of

the respective countries will benefit. The idea is to

link all the Black Sea countries with a road corri-

dor, starting from Alexandroupolis in northern

Greece, circling all the Black Sea countries and

returning to Alexandroupolis.

Moreover, we support all similar initiatives pro-

moting regional cooperation through our participa-

tion in the Stability Pact and Southeast European

Cooperative Initiative and in the Southeast Euro-

pean Cooperation Process.

Comparative advantagesIn this regard, the following regional and national

factors create natural comparative advantages for

foreign companies considering doing business in

the Balkans:

Evripidis Stylianidis

Deputy Minister for Foreign Affairswww.mfa.gr

The huge potential in the markets of Southeastern Europe is linked directly to the widerBlack Sea region and the rising markets in these countries. Greece can be a gateway for allbusinessmen wishing to invest in this region.

Themes

33

1. Greece is a full member of the eurozone with

the highest growth rate (4.3 percent) in 2006 and

reaching 4.6 percent in the first quarter of 2007.

2. The Greek government is working in a deter-

mined manner to attract direct foreign invest-

ments. Through recent initiatives such as the tax

reform, the new investment law, the law concern-

ing public-private partnerships (PPPs), privatiza-

tions and the liberalization of the energy market,

the Greek government is transforming the business

landscape and offering new investment opportuni-

ties.

3. I would like to refer especially to the important

projects that are being implemented in the infra-

structure sector in Greece which will lead to the

transformation of the broader region of SE Europe

and enhance its connection with Central and

Western Europe.

We are completing the construction of the

Egnatia Highway, one of the biggest road projects

in Europe, along the route of the old Roman Via

Egnatia, which will link the Greek-Turkish border

with the port of Igoumenitsa, traversing northern

Greece. Furthermore, nine vertical corridors will

provide links to Bulgaria, FYROM and Albania.

We are also promoting and financing the infra-

structure upgrading of the major Greek ports as

well as the construction of Corridor X, connecting

the upgraded port of Thessaloniki with Skopje and

Belgrade as well as with Central and Eastern

Europe. This corridor will play a very important role

in the economic relations of our countries, both

bilaterally as well as at a regional level.

4. Although Greece is a relatively small market of

11 million customers, it is strategically located

close to sizable emerging markets. Within a radius

of 800 kilometers there is a market of more than

150 million people. The very concept of our policy

and our consistency in following it have borne fruit.

Our exports to the countries of SE Europe

increased by 28.5 percent in 2006.

5. Greek businesspeople have the culture and the

mentality to understand the people of Southeast

Europe, as well as the practical experience of doing

business there. They are familiar with this business

environment, a key element when doing business

in the region. For example, Greeks originating from

the Black Sea area have in many cases built a good

business network in the market of their origin. The

Muslim minority of Thrace provides a stable bridge

of cooperation with the Turkish market. Nowadays,

Greek universities have faculties specialized in

Balkan, Black Sea, Turkish and Mediterranean

studies. The graduate students of these institutions

acquire a very deep understanding of the region,

proving themselves extremely useful to foreign

investors who wish to do business in these complex

markets.

6. More than 3,500 Greek firms actively partici-

pate in the economies of the region, creating more

than 200,000 jobs. Greece is the leading investor

in Albania, FYROM, Serbia and Montenegro, sec-

ond in Bulgaria and third in Romania. In less than

10 years, Greece has invested over 8 billion euros

in Southeast Europe. Greek business activities in

the region are focused on wholesale and retail

trade, retail systems of distribution, light industry,

banking and financial services, as well as on big

industrial investments in the sectors of food pro-

cessing, telecommunications, energy and mines.

7. Greek financial institutions have built a network

of almost 1,200 branches in the region, increasing

their market share to 20 percent. Last year, the

National Bank of Greece bought the majority of the

shares of Turkey’s Finansbank, whereas EFG

Eurobank and Alpha Bank bought out the majority

of the shares of Tekfenbank and Alternatifbank,

also of Turkey, respectively.

8. The city of Thessaloniki, on the threshold of the

Balkans, is Greece’s second-largest city. It is home

to the headquarters of the Black Sea Trade and

Development Bank as well as the Balkan Trade

Center. Δhe city is developing into an economic and

trade center, as well as a hub of combined trans-

ports for the emerging markets of the entire Balkan

Peninsula. Δhe Thessaloniki Stock Exchange Cen-

ter, which has an online connection with the Athens

Stock Exchange, is expected to develop into a

source of capital for the wider region.

9. Apart from the development assistance offered

to eligible countries, we have revitalized the Hel-

lenic Plan for the Economic Reconstruction of the

Balkans (HiPERB/ESOAV), established in March

2002 for an initial five-year period (2002-2006) so

as to boost the economic, social and institutional

reconstruction of the countries in Southeast Europe,

namely Albania, Bosnia & Herzegovina, Bulgaria,

FYROM, Romania, Serbia and Montenegro.

Through the HiPERB, which has now been extend-

ed to 2011, the Greek state provides financial sup-

port to these countries. The total amount allocated

is 550 million euros and it is entirely financed

through Greece’s national budget. Over the last 20

months, we have managed to increase the absorp-

tion rate of the budget from 2.4 percent to almost

11 percent.

10. Apart from the great significance of Southeast

Europe and the wider Black Sea area, the broader

region of the Middle East also represents a very chal-

lenging market for Greece. Greeks who used to live

in these countries until the 1970s have proved an

34

Themes

important link between the two regions. Prime Min-

ister Costas Karamanlis chose Egypt as the first

country to visit after his election, thus giving the sig-

nal to both the domestic market and the Arab world

that this region would again become a top priority

for Greece’s political and economic foreign policy.

Since November 2004, when the official visit of

the prime minister to Egypt took place, we have

visited Libya, Egypt (again), Lebanon, Saudi Ara-

bia, Jordan, Morocco, Israel and all the Gulf States

(Oman, Qatar, the United Arab Emirates, Bahrain

and Kuwait). Last February, Foreign Minister Dora

Bakoyannis and myself visited Abu Dhabi and

Dubai, accompanied by representatives of 100

large Greek companies, to further promote our rela-

tions and, of course, to multiply business opportu-

nities for Greek companies and to attract more

investments into Greece. Furthermore we are

scheduled to visit Algeria, Tunisia and Saudi Ara-

bia, countries with which we are already negotiat-

ing to sign bilateral economic agreements.

Again, this policy has borne fruit. Greek exports

have grown considerably — by 31.3 percent in

2006 — and many important trade agreements are

under way. Statistics also confirm that our policy,

both in the economic and the development fields

vis-a-vis the region of SE Europe, has also had pos-

itive results. In particular, our frequent visits to this

region and the intensification of commercial and

business relations led to a 48.9 percent increase in

Greek exports in 2006.

11. I wish now to briefly focus on another sector

where Greece has developed strong cooperation

with the countries of the SE European and Black

Sea regions, namely energy. For its part, Greece is

in the process of transforming itself from an energy

consumer market into an energy producer and an

energy transit country through the development of

a new oil and natural gas pipelines network.

Our energy diplomacy, which is being carried

out by the Foreign Ministry together with the Min-

istry of Development, is based on three pillars:

alternative sources, alternative suppliers and alter-

native routes.

Based on the above, and in terms of concrete

projects, we are completing the works of the Inter-

connector natural gas pipeline to bring natural gas

from the Azeri natural gas fields of Shah Deniz to

Italy, through Turkey and Greece. At the same time,

we are importing liquefied natural gas (LNG) from

Algeria and Egypt and storing it in special LNG

storage tanks in Greece. With the expansion of the

existing LNG storage tanks and the creation of two

others, Greece will hold 25 percent of the LNG stor-

age capacity in the whole Mediterranean region.

Three months ago, Greece, Russia and Bulgaria

signed an intergovernmental agreement on the con-

struction of the Burgas-Alexandroupolis oil pipeline.

This pipeline, an environmentally friendly project and

complementary to the main oil transport channel —

the Bosporus Strait — puts Greece on the world oil

map, providing another strategic exit to the large

quantities of oil now coming into the Black Sea.

The liberalization of the energy market and the

transformation of Greece into an energy hub encour-

age our cooperation in this sector and provide for

important large-scale investment opportunities.

It is also worth mentioning the signing in

Athens (October 2005) of the Energy Community

and Cooperation Treaty between the EU and nine

countries of Southeast Europe, which paves the

way toward a unified energy market at a Pan-Euro-

pean level.

Tourism & shippingLastly, let me mention two important sectors of the

Greek economy which play a key role in our devel-

opment process:

a. Greece is one of the most attractive tourist des-

tinations in the world, combining rich cultural her-

itage and unique scenery with an ideal climate.

Greece has a long tradition in tourism and hosts

more than 12 million visitors per year. After the

success of the Athens 2004 Olympic Games and

the completion of the construction of major infra-

structure projects, Greece gained the trust of big

international businessmen. The country is gradual-

ly establishing itself as the ideal destination for

organizing conventions, international exhibitions

and other events, as well as year-round activities

such as golf, spa therapy and skiing. By capitaliz-

ing on the Olympic Games, Greece is currently run-

ning an international advertising campaign, aiming

to give a significant boost to the tourism industry.

b. Greece has one of the biggest and most pros-

perous commercial fleets in the world. Shipping is

the most dynamic sector of the Greek economy and

constitutes a strategic advantage for the country.

With a population of just 11 million, Greece con-

trols 25 percent of the global maritime trade.

Spurred by increasing demand for oil and other

commodities in fast-growing economies such as

China and India has led shipping companies to

high profits in recent years.

It is therefore evident that today’s Greece is a

leader in terms of business events, offering a sta-

ble economic and political environment, competi-

tive human resources, generous investment incen-

tives, modern and reliable infrastructure, research

and development support and strong business pen-

etration in the broader region of Southeast Europe

and the Black Sea. Greece can thus be a gateway

for all businessmen wishing to invest in this region.

35

Outward investment strong; 3,500 Greek companies in Balkans

Foreign direct investment (FDI) is one of the

main engines of growth for national economies.

In particular, many small and medium-sized

countries have grown through promoting and

attracting FDI. At the same time, FDI enables

a country to better integrate in an intensive globalized

economic environment and successfully face the chal-

lenges set by international competition.

Until very recently (almost a decade ago), Greece

was a traditional though unsuccessful recipient of

incoming FDI. Bureaucracy and the lack of a targeted

strategy to attract FDI has contributed, among other

factors, to the poor performance of Greece as a host

country of FDI.

However, Greece now shows a strong position as an

outward investor, holding one of the top 60 positions

internationally. Greece is the most developed economy

in Southeast Europe and thus its outward FDI penetra-

tion is bound to play a very influential role in the region.

Today, more than 3,500 Greek companies operate in

the Balkans with total investment reaching $6 billion.

Thus, the vast majority of Greek outward FDI is direct-

ed to the Balkan region, to other countries of the

Mediterranean basin, such as Egypt, as well as devel-

oped economies including the US. In 2000, the value

of Greek outward FDI surpassed that of inward FDI.

There are quite a large number of studies that ana-

lyze the impact and determinants of inward FDI. How-

ever, there are only a limited number of studies that

examine outward FDI and, more precisely, their impact

on home economies. In particular, in the case of Greece

we know very little regarding the characteristics of this

rigorous and influential economic and business phe-

nomenon.

In view of these facts, the main purpose of this

study is to analyze the key characteristics of the Greek

multinational companies (MNCs), to estimate the

impact of their foreign activities on the Greek economy

and finally to indicate the conditions that will allow

their further development.

The analysis is based on an original survey in which

50 leading Greek MNCs were questioned in line with

previous studies performed for other similar European

(mainly) economies. The survey was conducted in the

first half of 2006. The final sample comprised 18

Greek MNCs which responded to the survey correspon-

ding to 36 percent of the population. At the same time,

another questionnaire was prepared and sent to a sam-

ple of representative subsidiaries of these 18 Greek

MNCs. The subsidiary survey resulted in 42 usable

responses. The main conclusions, which agree with the

majority of the studies on outward FDI from small open

economies, are summarized as follows:

1. Internationalization network: Greek MNCs have

developed a wide international network of produc-

tion with mainly regional attributes. Although the

host countries are of a wide diversity, including the

USA, Egypt etc, the majority of Greek outward FDI

goes to the EU countries, mainly in the Balkan

region. This regional production network enhances

the opportunity of Greece to play an even more

influential role in these countries that host the activ-

ities of Greek MNCs.

2. Motives for FDI: Apparently the core motivation to

become an MNC is market seeking. In addition to

this primary motivation, efficiency seeking consti-

tutes another core motivation for becoming an

MNC.

3. Competitiveness: Investing abroad enhances finan-

cial performance in terms of sales and position in

EBIT.

4. Exports: Outward FDI promotes exports from the

home base and thus compliments local production.

5. Investment: Outward FDI increases investment at a

group level. Greek MNCs act as rational interna-

tional investors. The strong R&D investment which

outperforms the average for the Greek economy is

impressive.

6. Motivation that encourages outward FDI: Adoption

of legislation concerning double taxation, adminis-

trative expenses and the strengthening of economic

diplomacy can further promote outward FDI.

Marina Papanastasiou www.iobe.gr

Think tank IOBE looks at the factors behind Greek multinationals entering foreign markets.Apart from aiming to broaden market share and increasing sales, the expansion drawsstronger interest from foreign investors interested in tapping the region’s solid growth.

Themes

IOBE RESEARCH

36

EU drops sanction threat over budget deficit

The lifting of the European Commission’s excessive deficit procedure against Greecewill offer some relief to the conservative government but many fiscal challenges stilllie ahead. The country is called upon to take advantage of strong economic growthand push through much needed structural reforms in the economy.

The lifting of the European Commission’s

excessive deficit procedure against Greece

heralds a new era for the country as the gov-

ernment promises to keep public finances in

check while also implementing accounting

changes that will offer a more accurate picture of the

economy.

A meeting of European Union ministers in Lux-

embourg earlier this month agreed to end the

threat of sanctions against Greece — along with

Germany and Malta — for having an excessively

high budget deficit.

In 2006 Greece reported a budget deficit of 2.6

percent of gross domestic product, below the 3

percent limit allowed by Brussels. It was the first

time since Greece joined the eurozone in 2001

that the deficit was below the EU threshold.

Greece’s budget deficit in 2005 stood at 5.5

percent of GDP, versus 7.9 percent in 2004.

Experts have welcomed the news, saying that it

will help give Greece tighter control of its finances

but have also warned that the decision does not

allow for a drop-off in fiscal discipline.

‘The decision (to lift the excessive deficit proce-

dure) is no doubt positive. It is better when a coun-

try has complete control of its finances but this

does not mean that we will have a large change in

the country’s fiscal policy. The deficit still needs to

be reduced as a means of helping secure future

economic growth,’ said an Athens-based economist

from one of Greece’s leading banks.

‘Restrictions are imposed by the reality of the

economy rather than the Commission,’ the econo-

mist added.

The deficit drop came on the back of tighter

spending and better-than-expected economic

growth which has helped support tax revenues.

A government crackdown on tax evasion is also

helping support revenue growth as the Finance

Ministry aims to make use of the country’s massive

gray economy — believed to be about 30 percent

of the overall economy.

According to state estimates, Greece’s economy

in 2007 is expected to grow by an annual rate of

3.9 percent — one of the highest in the eurozone.

Strong exports and buoyant business fixed

investment have helped support growth.

Lower corporate taxes, investment incentives,

public-private partnerships and an improvement

in the business climate through streamlined busi-

by Stelios Bouras

Themes

‘(The deficit reduction) has been

a difficult process, both because

of the size of the correction

required, but also because of the

uncertainties concerning fiscal

data. The size of the correction

was unprecedented, as the

deficit was reduced from 7.9

percent of GDP in 2004 to 2.6

percent in 2006. The correction

has taken place without negative

effects on economic growth.

Growth was 3.7 percent in 2005

and 4.3 percent in 2006. Unem-

ployment also fell. Our experi-

ence is an example of the suc-

cessful application of the revised

Stability and Growth Pact. The

excessive deficit was corrected,

the situation regarding fiscal sta-

tistics has improved, growth has

been high and unemployment

has fallen. Our attention now

shifts to the preventive arm of

the pact. Over the past three

years Greece has achieved a fis-

cal adjustment of 5.5 percentage

points of GDP. This is equivalent

to an adjustment of 1.8 percent

of GDP per annum since 2004.

To achieve our MTO we need an

annual adjustment of about 0.7-

0.8 percent p.a. in 2008-2010,

less than half the adjustment

achieved over 2005-2007. This

is still ambitious but achievable.’

Giorgos Alogoskoufis

Minister of Economy and Finance

37

ness regulations have helped support private

investments.

At the same time, export growth has been solid

as the country takes advantage of positive eco-

nomic conditions in Southeastern Europe, home to

Greece’s key trading partners, while also branching

out into new export markets, such as India and

China.

The Organization for Economic Cooperation and

Development (OECD) said in its 2007 annual sur-

vey on Greece that ‘it is particularly encouraging

that growth has been sustained over the last two

years despite substantial fiscal consolidation.’

‘However, significant further reforms are need-

ed to ensure that good performance is sustained in

the years to come,’ the Paris-based think tank

added — a view shared by the EU. The Commis-

sion has called on Greece to use this growth as a

means of helping push through reforms.

‘Greece needs to take advantage of the strong

economic growth that it has been enjoying (4.3

percent in 2006 and an expected 3.7 percent in

2007) to reduce its structural deficit, which

despite the significant reduction in the last two

years is still above 3 percent, and to progress

toward its medium-term objective of a budget on

balance,’ the Commission said.

‘This is of the utmost importance to reduce the

public debt rapidly and to improve the long-term

sustainability of its public finances currently put at

high risk by the expected increase in pensions and

other age-related expenditure,’ it added.

The end to threats of sanctions being brought

against Greece and lower budget deficits are also

expected to help the country compete for invest-

ments on an international level and draw foreign

Experts have welcomed the news,saying that it will help give Greecetighter control of its finances buthave also warned that thedecision does not allow for a drop-off in fiscal discipline.

‘When you are cutting the deficit

normally you say that it will have

some effect on the growth, but

here you have had both contin-

ued growth and reduction of the

deficit, which I think is some-

thing to be underlined.’

‘We want to congratulate Greece

on its recent economic perform-

ance. Growth over the past

decade has been among the

strongest in the OECD.’

Angel Gurria

OECD Secretary-General

38

investors interested in a stable and disciplined

budgetary environment.

Attracting foreign direct investment has been

one of the country’s weakest points but there was

a sharp improvement last year.

In 2006, FDI soared to 4.2 billion euros from

488 million euros in the previous year. The largest

new entrants to the Greek market were France’s

Credit Agricole, purchasing a majority stake in

Emporiki Bank for 2.1 billion euros, and French

financial services group AXA, buying Alpha Bank’s

insurance arm for 255 million euros.

The thumbs-up from Brussels on Greece’s

budget is also perceived as having implications on

the domestic political scene.

Some political commentators believe the conser-

vative government will call early elections in a bid to

take advantage of the positive economic news.

The government’s four-year term ends in March

next year but Prime Minister Costas Karamanlis is

now seen as being in possession of an extra tool to

promote his government’s economic policies.

‘There is political significance in the excessive

deficit procedure as this whole process is seen as

a reflection of the work completed by the govern-

ment,’ the economist added.

Credibility issueOne of the key issues to come out of the budget

supervision is that the country has made steps in

restoring the credibility of its national accounts.

Ecofin said on June 5 that it considers Greek

accounting data since 2004 to have been ‘correct-

ed in a credible and sustainable manner.’

‘Greece’s National Statistics Service has taken

a number of measures to improve the quality of the

deficit and debt data reported to the Commission

and this has led to a significant reduction in dis-

crepancies,’ Ecofin said.

‘As a result, Eurostat in October 2006 with-

drew its reservations on the quality of the figures

and, although unexplained discrepancies still

remain, it is unlikely that any future revision would

raise the 2006 deficit above the 3 percent thresh-

old,’ it added — a development that helps increase

the credibility of future budget estimates.

Greece is targeting a deficit of 1.8 and 1.2 per-

cent in 2008 and 2009 respectively. Finance Min-

‘I congratulated the Greek minis-

ter for the tremendous efforts the

government has taken in order to

consolidate the Greek public

finances. All of us will remember

what the situation really was

when the new government was

appointed. The performance real-

ized by the Greek government is

quite impressive.’

Jean-Claude Juncker

President of Eurogroup and

Prime Minister of Luxembourg

Themes

39

‘Thanks to the work that has

been done during the last three

years, the situation from the

point of view of the reliability of

the statistics is much better than

it was. (..) The work done both

in Athens and in Luxembourg

(Eurostat) has been very good

and should continue in the

future. (...) I think now the relia-

bility has increased and we can

adopt decisions with a degree of

confidence that we had not two

years ago.’

‘To have a sustainable position

over the medium term the Greek

authorities are perfectly aware

that they need to correct the

deficit in structural terms. In this

regard the commitment publicly

assumed by Minister Alogosk-

oufis of trying to reach the medi-

um-term objective in 2010 is a

very sensible but at the same

time a very ambitious one.’

Joaquin Almunia

EU Commissioner for Economic

and Monetary Affairs

ister Giorgos Alogokoufis has said that Greece is

targeting a balanced budget by 2010.

After a series of revisions to the country’s pub-

lic accounts resulted in higher deficits, Greece has

taken the initiative to revise its national accounts

to better account for the economy’s true size.

This will revise upward its GDP for the past few

years by as much as 25 percent by including parts

of its underground economy.

According to local press reports, the revision will

show that the size of Greece’s economy in 2005

was 223 billion euros, around 23 percent larger

that the previous estimate of 181 billion euros.

A revision will also help the country meet EU

deficit standards by reducing the budget deficit as

a percentage of GDP. The 2006 deficit will fall to

2.1 percent from current estimates of 2.6 percent.

‘Our forecast for the deficit in 2006 is that we

will achieve a level of 2.6 percent (of GDP) based

on the old GDP and not on the revised figure,’

according to Alogoskoufis.

Greek officials said that the adjustment is in

line with Eurostat rules and part of revisions done

by all EU countries every five years or so. A deci-

sion from Eurostat is expected soon.

Some experts believe the revision will endanger

EU Cohesion Funds, some 1.4 billion euros ear-

marked for Greece, since it takes its per capita

income above 90 percent of the average EU level.

It will also increase Greece’s annual contribu-

tion to the EU budget and raise the amount of

money the state is obliged to pay annually to the

main national security fund (IKA) to satisfy the

quota of 1 percent. On the other hand, it will help

to improve dramatically its public debt to GDP ratio

to less than 90 percent.

Greece’s general government debt is among the

highest in the eurozone at 104.6 percent of GDP in

2006. The figure is seen falling to 97.6 percent of

GDP in 2008.

The year 2007 so far has got off to a mixed start.

Ordinary budget revenues for the first four

months of the year rose 9.8 percent year-on-year,

beating the targeted 7.2 percent increase.

Primary expenditure on the other hand shot up

10.7 percent, above the 7.4 percent target rate.

Despite the shortfall, economists believe the gov-

ernment is on track to achieving its 2007 fiscal goals.

40

During May and June the market exhibited a

high single-digit return (excluding dividends)

mainly due to earnings surprises, especially in

the small- and mid-cap indices.

Positive surprises outweighed the negative ones,

with the absolute number of negative surprises

decreasing significantly quarter-on-quarter. Our sur-

prise outcome is based on the whole information

package accompanying the results and may not be

linked to headline surprises. Watch-list revenues were

up 8.1 percent, 3 percentage points (pp) above our

expectations, and net profits were up by 16.5pct, 7pp

above expectations.

We were positively surprised by EFG Eurobank,

OTE, Mytilineos Holdings, Metka, OPAP, Intralot,

EYDAP, Jumbo, Fourlis, Teletypos, Attica Holdings,

Minoan Lines, OLP and Hellenic Exchanges. A worse-

than-expected set of results and accompanying state-

ments came from Hellenic Technodomiki and Postal

Savings Bank.

Institutional flow remained supportive. Foreign

institutionals have increased their weight in the Greek

market by 1.2pp since January 2007, according to

official ATHEX data. The important placements of the

April-May period were those of Piraeus Bank (0.57pct

in April at 27.10 euros), Forthnet (10.80pct in April

at 10.50 euros), Kloukinas-Lappas (12.12pct in May

at 7 euros), Sidenor (6.25pct in May at 16.00 euros)

and National Bank (0.12pct in May at 42.70 euros).

The benchmark general index posted gains of 7pct

during April and May, compared with gains of 6pct

during Q107. Earnings surprises led the market high-

er. Ex-DPS trading and weak results of selective

banks and construction stocks had a negative impact.

Deal flow continued with the acquisition of a Nation-

al Bank of Greece minority stake in Heracles by

French cement group Lafarge.

The outlook for the Greek market remains positive

because of continued credit expansion, regional

growth and operating leverage. Our theme of con-

struction sector recovery, though still valid at a top-

line level, has been significantly weakened due to

very low construction margins.

Our 07 EPS growth estimate increased by 1.5pp

to 29.5pct, mainly due to the upward revision of our

banking sector estimates. We remind that 06 EPS

change stood at -1pct, compared with +44pct in 05

and 15pct in 04. Our Watch List trades at 16.4x 07e

earnings, still at a premium to Europe’s 14x. Valua-

tions are supported by the underlying growth.

Key uncertainties include decelerating loan growth

and intensifying competition for banks, commodity

prices, input costs, regulatory environment for gaming

and electricity, delays in BOT and public projects and

corporate governance.

We remain positive in spite of demanding valua-

tions, as our core investment themes of high econom-

ic growth, regional expansion, corporate actions and

restructuring remain intact.

Markets

research

Securities

Q1 results: Strong corporate earnings

Q1 07 Results ReviewSub- Company View Date

Industry

Banking Alpha Bank Mixed 27 AprATEbank In line 16 May

Bank of Cyprus Mixed 10 MayEmporiki Bank Mixed 11 MayEFG Eurobank Above 9 MayNational Bank - 30 MayPiraeus Bank In line 7 May

Postal Savings Bank Below 30 May

Insurance Ethniki Insurance - 31 May

Telecoms Cosmote Mixed 24 MayOTE Above 30 May

Food & Drink Coca-Cola HBC In line 10 MayVivartia Mixed 30 May

Materials/Industrials M.J.Maillis In line 31 MayS&B Ind. Minerals In line 16 May

Mytilineos Holdings Above 24 MayAluminium of Greece Mixed 24 May

Metka Above 24 MayFrigoglass In line 09 May

Gaming Intralot Above 29 MayOPAP Above 30 May

Utilities EYDAP Above 31 MayPPC In line 22 May

Construction J&P Avax In line 31 MayHell.Technodomiki Below 31 May

Gek In line 31 MayTerna In line 31 May

Energy Hellenic Petroleum In line 09 MayMotor Oil In line 31 May

Rokas Mixed 24 May

Technology Intracom Mixed 31 May

Cement Titan Cement Mixed 3 May

Retail Hellenic Duty Free Mixed 29 MayJumbo Above 24 May

Sarantis In line 15 MayFourlis Above 30 May

Luxury Goods Folli-Follie In line 29 May

Transport Attica Holdings Above 25 MayMinoan Lines Above 21 May

OLP Above 30 May

Media Teletypos (Mega) Mixed 17 May

Holdings Hellenic Exchanges Above 7 May

Car Rental Autohellas Mixed 15 May

41

Autohellas is the largest car rental company in Greece,

according to its financial capacity and the size of its

fleet of vehicles, and the biggest national franchisee of

Hertz International in Europe. The company has been

operating in Greece for more than 44 years at 117

locations, of which 20 are located at airports, with a

fleet exceeding 26,500 cars (c 25pct market share). It

has consistently held on to first place in the car hire

field and a leading position in the market.

Autohellas was awarded by the travel industry for

two consecutive years, 1998 and 1999, as the best

car rental company in Greece for the high standard of

services rendered. Autohellas employs over 550 peo-

ple and also operates in Bulgaria and Cyprus.

The main activities of Autohellas are short- (renting)

and long- (fleet management) term rentals. The Renting

Division covers the rental needs of both private clients

and enterprises for the short term, while the Fleet Man-

agement Division covers the long-term rental needs of

enterprises as well as the management of their fleet.

During the first quarter — historically the least

important — Autohellas posted a positive set of results

due to growth in domestic fleet management. Q107

revenues grew by 12.6pct to 24 mln euros (P&K FY 07

est. at 10.4pct to 129 mln euros), EBITDA by 12.4pct

to 12.8 mln euros (P&K FY 07 estimate at 9.3pct to

75.5 mln euros) and adjusted net income of 0.76 mln

euros vs 0.4 mln euros last year (P&K FY 07 estimate

at 22 mln euros vs 18 mln euros last year).

On the positive side we highlight: (a) a relatively

high operational leverage that stems from own vehicle

service stations and boosts after-sale support, cus-

tomer loyalty (as a one-stop shop provider) and mar-

gin leeway to remain competitive on price; (b)

economies of scale in buying and selling vehicles

allow for superior financial terms and additional cash

inflows; (c) a successful shift toward fleet manage-

ment (now 65pct of revenues) provides relatively

steady revenue and profit streams over the long term;

(d) the increase in the penetration of the corporate

fleet in the total Greek car park (5pct in Greece vs 15-

25pct in the EU) could significantly raise the compa-

ny’s fleet management car fleet; (e) liberalization of

the renting market (rent-a-van, chauffeur service,

equipment rental) will further enhance profitability.

Key investment attractions center on a superior

management team with a consistent track record in

financial delivery and planning execution, as well as

an attractive valuation (07 EV/EBITDA at 5.1x and

P/E at 11.5x) with a relatively high and sustainable

dividend yield (3.8pct).

We highlight certain (minor) risk factors in the

investment case such as the low free-float, the limit-

ed coverage by analysts and the low liquidity of the

stock. In addition, the highly fragmented and slow-

growing market renders operating profitability sus-

ceptible to cost controls and efficiency in operations.

Autohellas

w w w . p ko n l i n e . g r

Turnover EBIT Net profitQ1 06 Q1 07 Change Q1 06 Q1 07 Change Q1 06 Q1 07 Change

(mln euros) (mln euros) (%) (mln euros) (mln euros) (%) (mln euros) (mln euros) (%)

472.09 519.71 10.1 n.a. n.a. n.a. 150.67 256.14 70.0196.54 240.38 22.3 n.a. n.a. n.a. 47.74 74.59 56.3211.00 255.00 20.9 n.a. n.a. n.a. 64.81 107.00 65.1249.30 244.00 -2.1 n.a. n.a. n.a. 52.08 18.28 -64.9537.00 650.00 21.0 n.a. n.a. n.a. 157.00 203.70 29.7682.69 1029.00 50.7 n.a. n.a. n.a. 250.20 381.00 52.3366.70 458.50 25.0 n.a. n.a. n.a. 185.90 248.20 33.5149.30 95.98 -35.7 n.a. n.a. n.a. 74.10 39.12 -47.2

180.78 212.84 17.7 n.a. n.a. n.a. 8.86 7.47 -15.8

496.38 687.60 38.5 117.25 130.3 11.1 75.21 74.66 -0.71.386.70 1.508.60 8.8 228.20 260.3 14.1 109.70 140.90 28.4

1.067.60 1.255.40 17.6 54.20 60.2 11.1 20.40 25.40 24.5215.13 245.89 14.3 17.59 21.4 21.4 12.60 12.01 -4.7

94.31 92.98 -1.4 7.87 5.8 -26.2 4.02 1.85 -54.0104.49 115.53 10.6 9.89 11.1 11.8 6.11 6.29 2.8203.45 225.39 10.8 38.67 35.3 -8.6 59.31 22.62 -61.9110.13 119.16 8.2 21.73 22.1 1.6 22.40 14.51 -35.2

63.23 68.25 7.9 10.44 12.9 23.8 6.84 8.97 31.2116.60 133.90 14.8 24.00 27.9 16.3 15.30 18.70 22.2

179.78 179.80 0.0 67.04 67.4 0.5 23.97 34.10 42.31.044.00 1.151.30 10.3 173.30 188.8 8.9 122.60 143.40 17.0

77.1 83.20 7.9 3.5 6.40 82.9 1.7 3.00 76.51.200.00 1.242.50 3.5 154.00 94.9 -38.4 89.50 41.00 -54.2

80.20 108.79 35.6 5.68 6.4 13.3 6.83 7.73 13.1135.40 186.24 37.5 27.68 11.6 -58.1 24.70 16.14 -34.7

56.80 95.62 68.3 14.60 22.9 57.1 8.19 10.45 27.751.50 83.48 62.1 8.86 12.4 39.9 4.48 5.43 21.2

2.058.00 1.885.00 -8.4 96.00 74.0 -22.9 72.00 55.00 -23.6949.00 808.10 -14.8 67.03 44.0 -34.4 43.00 25.70 -40.2

13.98 12.50 -10.6 5.35 5.7 6.6 2.91 4.90 68.7

160.87 96.58 -40.0 13.55 -1.4 -110.3 6.4 -0.99 -115.5

335.00 342.10 2.1 61.79 67.9 9.8 43.00 50.73 18.0

41.98 53.10 26.5 7.26 7.6 4.4 5.51 5.07 -8.0213.83 269.38 26.0 51.38 71.2 38.5 33.86 49.74 46.9

48.83 54.38 11.4 5.65 7.6 34.0 4.47 5.48 22.692.74 125.59 35.4 7.55 18.7 147.4 4.15 12.02 189.9

61.90 121.60 96.4 20.10 31.2 55.2 16.60 18.30 10.2

68.50 59.46 -13.2 -7.41 1.2 116.8 -5.50 9.34 269.933.10 37.46 13.2 -1.09 3.0 373.1 -7.71 -3.94 48.934.51 35.70 3.4 4.90 5.0 2.5 3.40 3.70 9.0

34.59 45.44 31.4 1.71 2.8 61.9 0.99 2.75 177.5

29.65 41.75 40.8 20.54 31.6 53.9 14.34 23.86 66.4

21.29 23.99 12.7 1.23 1.2 -3.7 -0.62 0.76 221.4

42

The strategic plan of lottery operator OPAP is

being implemented by the company on all

fronts in a coordinated attempt to secure a

leading role in Greece and on an interna-

tional level. Recognition of this leading

international role recently came from Arthur L.

Gleason Jr, president and CEO of the World Lottery

Association (WLA), in Athens at the start of June,

2007.

In a presentation, Gleason said the percentage

of OPAP’s market share in lottery turnover is 7 per-

cent in Europe and 3 percent worldwide. He also

commented that, based on 2006 sales of US$6.3

billion or 4.6 billion euros, OPAP ranks fifth in

Europe and seventh in the world.

The leading role of OPAP in Greece and inter-

nationally is supported by its economic perform-

ance: Gains that appear in first-quarter earnings of

2007 provide a safe guide for the future.

OPAP SA, the leading gaming operator in

Greece, is continuing its profitable upward course,

as seen in its interim financial results for the three-

month period ended March 31, 2007 [end of May,

2007], prepared in accordance with International

Financial Reporting Standards. According to the

most recent fiscal evident of Q1 2007, revenues

for the period grew to 1,151.3 mln euros, an

increase of 10.3 percent year-on-year, while net

profit increased by 16.9 percent to 143.4 mln

euros compared to 122.6 mln in Q1 2006.

More specifically, revenues for the period grew

to 1,151.3 mln euros, an increase of 10.3 percent

on Q1 2006. This sales increase is primarily due to

the lottery game KINO's strong performance since

September 22, 2006, when extended operating

hours came into effect.

EBITDA for the period amounted to 195.6 mln

euros, an increase of 9.2 percent. The EBITDA mar-

gin remained at Q1 2006 levels, despite: i) the pay-

ment of two monthly installments amounting to

25.8 mln euros, pertaining to the advisory contract

provisions with Intralot in relation to the Stoichima

game, ii) the increase in agents' commissions since

January 1, 2007, for KINO and iii) the increased

distribution costs including advertising expenses for

Stoichima since January 29, 2007. Net profit for Q1

2007 amounted to 143.4 mln euros, an increase of

16.9 percent over the respective period of 2006.

Total revenues increased by 10.3 percent to

1,151 mln euros in Q1 2007 from 1,044 mln in

Q1 2006. Sports betting revenues dropped by 2

percent, mainly due to a decrease of 1.7 percent in

Stoichima revenues.

Stoichima revenues decreased by 26.0 percent

in January 2007 and increased by 5.0 percent and

11.3 percent in February and in March 2007,

respectively, as compared to Q1 2006.

This significant reduction in January was due to

the lower payout ratios offered by Intralot in the last

month of their contract. As of January 30, 2007,

when OPAP undertook the risk management of the

game, the payout ratio was substantially increased,

resulting in the reversal of the game's performance.

Revenues from numerical games in Q1 2007

increased by 21.8 percent to 656.9 mln euros

from 539.3 mln in Q1 2006. Revenues from KINO

increased by 27.6 percent to 557.6 mln euros in

Q1 2007, mainly due to the extension of the

game's playing hours as of September 22, 2006.

Daily KINO revenues per agent in the first quarter

of the year averaged approximately 1,180 euros.

Revenues from the game JOKER decreased by 6.9

percent in the quarter, amounting to 53.9 mln

euros, mainly due to the lack of favorable jackpots

in Q1 2007. LOTTO and PROTO revenues

increased by 11.2 percent and 13.1 percent

respectively, whereas SUPER 3 and EXTRA 5 rev-

enues decreased by 6.8 percent and 18.0 percent

respectively. As a result of KINO’s strong perform-

ance, numerical game revenues represented 57.1

percent of total revenues, compared to 51.7 per-

cent in the same quarter of 2006.

OPAP's largest cost item relates to payouts to

lottery and betting winners, which in Q1 2007

increased by 11.6 percent to 754.3 mln euros.

COMPARISON OF SELECTED US LOTTERIES AND OPAPCALENDAR YEAR 2006 SALES (IN US $ MILLION)

LOTTERY POPULATION(IN MILLION)

LOTTO NUMBERS KENO SPORTSBETTING

OTHER INSTANTS TOTAL PER CAPITA

CALIFORNIA

FLORIDA

GEORGIA

MASSACHUSET ST

NEW JERSEY

MICHIGAN

NEW YORK

TEXAS

OPAP SA

36.5 1,239 149 155 13 1,882 3,438 $94

18.1 1,085 572 200 2,298 4,155 $230

9.4 299 730 60 10 2,107 3,206 $341

6.4 232 341 783 3,196 4,552 $711

8.7 451 708 10 1,161 2,330 $267

10.1 284 713 455 10 753 2,215 $219

19.3 964 1,542 448 190 3,467 6,611 $343

23.5 520 303 53 2,868 3,744 $159

10.7 73 111 2,498 3,235 337 6,254 $584

Company Snapshot

�Hellenic Republic ownership: 34%

�Current free-float: 66%

�High dividend payout policy

�2006 revenues of €4,633 mln and adjusted EBITDA of €738 mln

�Largest online retail network in Greece

�52% of the total Greek gaming market

�20-year exclusive concession

�Market cap on Athens Exchange c €9.0 bln (June 2007)

�Fixed-odds presence in Cyprus

�The leading Greek gaming company

Dividend Policy

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2001 2002 2003 2004 2005 20060.17

0.43

0.60 0.67

0.40

0.27

0.73

0.43

0.30

1.48

0.93

0.55

1.42

0.94

0.48

1.58

1.03

0.55

Interim Dividend

€

Final Dividend

Singapore Pools $ 827 annually

Massachusetts $ 711 annually

OPAP GREECE $ 584 annually

�

�

�

Worldwide Lottery Sales per capita

Markets

By Natasa Mastorakou

OPAP’s leadership role in world lottery business

Overall, payouts as a percentage of operating rev-

enues increased to 65.5 percent, from 64.8 per-

cent in Q1 2006, primarily due to higher payout

ratios in Stoichima, which grew to 65.0 percent in

Q1 2007 from 63.9 percent in Q1 2006. The aver-

age agent’s commission increased by 8.4 percent,

compared to 8.0 percent in Q1 2006 due to the

increased KINO commissions as of January 1,

2007. Betting commissions paid to Intralot

amounted to 9.5 mln euros compared to 51.1 mln

in Q1 2006, due to the contract expiration on Jan-

uary 29, 2007. Third-party payments reached

28.9 mln euros compared to 2.5 mln in Q1 2006,

due to the payment of the two monthly install-

ments to Intralot.

Staff costs included in cost of sales represent a

component of total staff costs. Total staff costs

reached 11.3 mln euros in Q1 2007 versus 8.8

mln in Q1 2006, a 27.9 percent increase, mainly

due to i) personnel hiring for the operating needs of

the new Betting Division, and ii) provision of staff

salary increases according to the collective employ-

ment agreement. Other expenses amounted to 7.2

mln euros versus 5.2 mln, reflecting the increased

costs of the inhouse undertaking of Stoichima and

IT-related expenses.

5.000

4.500

4.000

3.500

3.000

2.500

2.000

1.500

1.000

500

02002 2003 2004 2005 2006

Revenue Mix

}20%

}80%}23%

}77%} 47%

}53% }41%}59% }49%

}51%

M€

Stoichima Propo Propogoal Joker Lotto Proto Extra 5 Super 3 Kino

�The Annual Ordinary General Meeting of shareholders

approved on June 6, 2007 the distribution of a total dividendfor the fiscal year 2006 of €1.58 per share.Following the deduction of the interim dividendof €0.55 per share, the remaining dividend of €1.03 per sharewas paid out on June 19, 2007.

�March and May 2007: the European Court of Justice and

the European Free Trade Association Court reached significantdecisions (Placanica, Unibet, Kingdom of Norway).The President of the European State Lotteriesand Toto Association Dr Winfried Wortmann commented onthe outcome of the above judgments, stating that theyare all in favor of the maintenance of the existing statemonopolies in the gaming sector.

�30/01/2007: In-house undertaking of the risk management

and operation of the STOICHIMA game.

Recent Developments

43

ñ Gross profit in Q1 2007 increased by 12.9 per-

cent to 238.1 mln euros from 210.9 mln in Q1

2006. Gross profit margin slightly increased to

20.7 percent from 20.2 percent.

ñ Distribution costs increased to 38.3 mln euros

in Q1 2007 compared to 27.1 mln in Q1

2006, mainly due to the increased sponsor-

ships for social responsibility and the introduc-

tion of advertising expenses for Stoichima since

February 2007.

ñ Administrative expenses increased to 11.4 mln

euros from 9.6 mln in Q1 2006, mainly due to

the increase in personnel costs. Other operating

expenses: Other operating expenses decreased

to 0.4 mln euros from 3.5 mln in Q1 2006.

ñ Reflecting abovementioned factors, profit from

operational activities increased by 10.4 per-

cent to 189.0 mln euros compared to 171.2

mln in Q1 2006.

ñ Profit before taxes increased by 10.7 percent to

192.7 mln euros from 174.0 mln in Q1 2006.

ñ Tax expenses decreased to 49.3 mln euros in

Q1 2007 from 51.4 mln. The reduction in tax

expenses is mainly due to the decrease of the

tax rate to 25 percent from 29 percent in

2006.

ñ Net profit for Q1 2007 increased by 16.9 per-

cent to 143.4 mln euros compared to 122.6

mln in Q1 2006.

ñ Cash flows from operating activities in Q1

2007 increased by 50.1 percent to 218.0 mln

euros compared to 145.2 mln in Q1 2006.

This increase is mainly attributed to the collec-

tion of the remaining 2006 receivables from

agents in early 2007 as well as the collection

of Intralot's receivables due to the settlement of

the Stoichima contract.

ñ Cash flow from investing activities in Q1 2007

amounted to 2.5 mln euros from 1.0 mln in the

same period of 2006. Positive inflows are pri-

marily attributed to the lower capital expendi-

ture in Q1 2007 together with the increased

revenues from interest income.

ñ Cash flow from financial activities amounted to

an outflow of 2.5 mln euros in Q1 2007, repre-

senting dividend payments during the quarter.

Q1 2007-2006 Results

2.000

1.500

1.000

500

0

Q1 07 Q1 06

1,151 1,044

500

0

Q1 07 Q1 06

196 179

400

300

200

100

10.3%

9.2%

500

0

Q1 07 Q1 06

143 123

400

300

200

100

16.9%

Q1 2007-06Operating Revenues (mln €)

Q1 2007-06EBITDA (mln €)

Q1 2007-06Net Profit (mln €)

Commenting on the Q1 2007 results, OPAP’s CEO, Basile Neiadas noted: ‘We are pleasedto announce a solid set of financial results both in terms of revenues andprofitability. The continued strong performance in KINO, along with the successfulundertaking of the Stoichima risk-management operations to date, make usoptimistic for delivering further growth in the company’s fundamentals.’

44

Flying high

Aegean & the market

Aegean Airlines is the only private Greek

airline. It controls the second-highest

market share in total Greek air traffic (14

percent) and first position in the domestic

air traffic with a 51 percent market share.

It operates 24 jets on 32 domestic and interna-

tional scheduled routes. Approximately 4.45 mil-

lion passengers traveled with Aegean in 2006.

The company also has a partnership with

Lufthansa with the aim of realizing both revenue

and cost synergies.

Aegean’s financial performance has been quite

strong both in absolute terms and relative to its

peers. In 2006, net profit was up 111.6 percent

year-on-year at 25.4 mln euros. Revenues grew by

17.7 percent at 401 mln euros while EBITDAR

increased by 31.6 percent at 70.1 mln. The

EBITDAR margin expanded to 17.5 percent from

15.6 percent in 2005. Higher utilization rates and

containment in all cost lines were behind the mar-

gin expansion. Net debt also fell to 32.4 mln euros

from 52.8 mln in 2005. As regards traffic, approx-

imately 4.5 mln passengers traveled with Aegean

in 2006 compared to 4 mln in 2005. Aegean’s

growth rates and profitability compare favorably

with its peers. Its 2006 EBITDAR margin at 17.5

percent was second only to Ryanair (32 percent),

while most network carriers posted margins in the

range of 10-14 percent. Furthermore, Aegean had

the highest revenue growth among network carriers

in 2004-2006 to the tune of 18 percent when

most network carriers increased revenues in the

high single digits.

Aegean’s home market has been growing by

4.3 percent per annum since 2003. Domestic

routes increased by circa 7 percent p.a. while

international routes grew by c 3.7 percent p.a.

International traffic represented approximately 82

percent of total traffic. The Greek market is expect-

ed to grow by c 5 percent p.a., one of the highest

growth rates in Europe over the next three years.

On the domestic front, the liberalization of ferry

fares and the subsequent rise in fare prices could

switch demand to airlines. Demand from abroad

for the Greek tourist product should continue rising

thanks to marketing campaigns initiated by the

state and investments in infrastructure and new

facilities. Furthermore, Greeks seem to travel more

today than in the past, both for pleasure and busi-

ness due to the expansion of Greek companies

overseas, while new destinations are becoming

available. In this context, Aegean should play a

leading role as it enjoys a leading market share and

strong brand awareness while it offers an appeal-

ing quality product.

The company aims to sustain good growth rates

and further improve operating profitability, capital-

izing on the good dynamics of the market through

the introduction of new longer routes, the deploy-

ment of new aircraft, which should be more effi-

cient with higher capacity, and strategic alliances

with major international carriers. Aegean added

Markets

The Greek market is quite fragmented, with

more than 45 full service carriers operating

mainly out of Athens, 10 low-cost carriers

and more than 150 charter airlines. The two

local airlines control circa 32 percent of the mar-

ket, while 10 airlines hold c 20 percent of the

market.

Greek air traffic has expanded by over 4 per-

cent p.a. over the last four years. This growth

breaks down to c 6.5 percent p.a. on scheduled

routes, while seasonal and charter flights demon-

strated a small growth to the tune of 1.8 percent

p.a. each. We expect the charter component to

dwindle in the following years as more seasonal

scheduled flights become available.

Domestic routes have expanded by roughly 7

percent p.a. since 2003. We believe that Aegean

helped toward this direction with the low fares

offered through its website and the increased fre-

quency to a variety of destinations. International

traffic from Athens and Thessaloniki airports also

recorded a good 6.7 percent and 4.8 percent

growth p.a. respectively in the same period.

International traffic represented c 82 percent of

the total traffic over the last four years.

Q Q QApart from Asia, Greece is expected to post one

of the highest market growth rates in the next

three years. Air traffic has consistently outpaced

the country’s GDP growth since 2003 and there

is a strong belief that this positive deviation will

continue. The EIU estimates 5 percent growth

p.a. in arrivals in Greece until 2009, reaching

17.5 mln arrivals by then.

A key driver behind past and forecasted

growth is tourism. There is an effort under way to

expand the tourism season, hence lowering sea-

sonality in the airline business in Greece, through

promotional campaigns initiated by the state as

well as investments in infrastructure (e.g. roads,

airports) and facilities (e.g. hotels, golf courses)

by the public and private sector. The seasonality

is more evident in the international traffic.

Another positive element is the increased inter-

nationalization of the Greek companies. Greek

companies have been expanding quite aggres-By Dimitris Pappas

45

three new Airbus A320s to its fleet in Q1 2007,

while it plans to add 10 more in 2008 and six in

2009, partly replacing its older and less efficient

fleet. Aegean also plans to add new routes. It has

already added three scheduled routes and eight

seasonal ones in 2007, while the management is

looking to create two or three new routes p.a. in the

future. In our view, there is room for expanding its

international routes. Indicatively, Aegean has no

presence in London, Paris, Amsterdam, Brussels

and Istanbul among the most popular destinations

for 2006 in Greece. Furthermore, Aegean is cur-

rently designated as a beneficiary of traffic rights

under bilateral agreements between Greece and

Turkey, Albania, Russia and Ukraine. The specific

designations could provide Aegean with an advan-

tage in future negotiations regarding the addition of

the aforementioned destinations to Aegean’s portfo-

lio. We estimate that the company should have a

fleet of 29 aircraft by 2009, from 21 in 2006, with

an average age of about four years, flying to 37 des-

tinations by 2009, from 30 in 2006. The new

routes will not only provide exposure to new mar-

kets, but should also lead to cost efficiencies.

Aegean currently flies on relatively short routes,

incurring higher costs than when flying on longer

routes. The new planes, apart from adding capaci-

ty, are more fuel-efficient and cost less to maintain.

Aegean has had a partnership with Lufthansa

since November 2005. Aegean feeds passengers to

the international destinations of the German carri-

er and vice versa. The new routes to Germany as

well as increased frequencies to the existing routes

should leverage this cooperation. Apart from traf-

fic, the link with Lufthansa increases awareness in

the German market, while there is significant

potential for synergies in sales/administration and

know-how at a latter stage.

For 2007 it is estimated that Aegean’s revenues

should grow by 17.3 percent at 470.6 mln euros on

the back of: 1) improved performance of maturing

routes; 2) the introduction of new routes; 3) increased

capacity due to new fleet deployment; and 4)

improved product mix. We expect an increase of

80bps in EBITDAR margin at 18.3 percent largely

due to a high utilization rate and cost efficiencies. Net

profit should grow by 19.8 percent, reaching 30.4

mln euros. For the period 2006-2009, we forecast

revenue CAGR of 17.2 percent, EBITDAR margin of

19.8 by 2009 from 17.5 percent in 2006 with a bias

on the upside as a result of efficiencies throughout the

value chain (e.g. scale, maintenance and distribution)

and net profit CAGR of 17.5 percent. We see the

company generating operating cash flow of more than

40 mln euros from 2008 and beyond.

sively in SE Europe, which should increase busi-

ness travel in Greece.

Q Q QAegean ranks second in the total air traffic of Greece

with a market share of 14 percent, while it has a 51

percent market share of the total domestic traffic. The

main competitors are Olympic, international schedule

and charter carriers, low-cost carriers and ferries.

Q Q QThe main competitor in both domestic and interna-

tional routes is Olympic Airlines. It overlaps Aegean in

both routes and frequency by 89 percent and 96 per-

cent respectively. Olympic is the Greek flag carrier and

as such it carries a significant emotional equity with

the Greeks. Olympic also enjoys a reputation of safe-

ty, while it also has wide coverage.

However, the company has pending issues with

the European Commission. The latter has asked

Olympic to return subsidies to the government. In all,

the company has major solvency issues.

Last year, both Olympic and Aegean carried iden-

tical numbers of passengers on their domestic routes

(c 3 mln) although Aegean operated 13 domestic

routes, compared to the 51 routes of Olympic. Aegean

is lagging in international traffic since it carried 1.5

mln passengers last year, c 1 mln passengers less

than Olympic. This is mainly because it is under-rep-

resented on routes out of Athens International Airport

compared to Olympic.

Q Q QAegean is competing with a number of European

players — scheduled, charter and low-cost carriers

(LCCs) — on many of its routes. However, only with

some German LCCs, namely Air Berlin and German-

wings, is there significant overlapping, mainly due to

the heavy weight of German destinations in Aegean’s

network. In cases where the company is facing a no-

frills carrier it usually holds second or third position

in the market.

EasyJet seems to be a key competitor for Aegean

among its international peers. It controls a significant

market share on the London route, while its aggres-

sive pricing policy is an entry barrier. However, if

Aegean decides to enter the London route, it could still

gain a hefty market share stemming mainly from other

competitors, like Olympic and BA.

EasyJet also flies out of Athens to two popular des-

tinations, Milan and Paris. In Milan, both airlines fly

to Malpensa airport. Although Aegean used to fly to

Linate, it has swapped it for Malpensa in order to

increase its frequency to two flights per day and get

better time spots. EasyJet flies to Milan only once a

day, at midday. We believe that the recent addition of

the second flight should have a positive effect on

Aegean’s market share on this route.

Q Q QOther competitors of Aegean in the domestic market

are ferries and hydroplanes. Greece has a unique

landscape with many islands and airlines facing com-

petition on domestic routes from ferries. The recent

liberalization of fares in ferries servicing the Greek

islands, which led to price increases, could potential-

ly be good news for Aegean as it could shift demand

toward airlines. Geography also creates the need for

direct flights instead of using a hub and then redirect-

ing passengers through other flights to their destina-

tions. As regards hydroplanes, their capacity is small

and therefore we do not believe they could have a sig-

nificant impact on Aegean’s operations.

46

News in brief

For the eighth consecutive year the Interna-

tional Venture Capital Forum is being

organized in Greece. With the experience of

previous years, the Hellenic Center for

Investment (www.elke.gr), the New Econo-

my Development Fund (www.taneo.gr) and the

Innovation Relay Center — Help Forward

(www.help-forward.gr) expect to raise financing for

ambitious and dynamic entrepreneurs, business-

oriented researchers and new technology-based

firms in Southeastern Europe.

The 8th International Venture Capital Forum

will take place in Athens on July 3-4, 2007. Busi-

nessmen, researchers and policy makers from

Southeastern Europe and the Eastern Mediter-

ranean are invited to attend, present their business

ideas and discuss venture opportunities in dedicat-

ed bilateral meetings. The event also provides a

forum for institutional and other investment pro-

fessionals to meet with policy makers, entrepre-

neurs, academics and researchers for an open

exchange of views and ideas. In parallel with the

enterprising meetings, conferences will take place

at which businessmen, investors and policy

shapers will discuss developments in Greece and

internationally.

The 8th International Venture Capital Forum is

a unique two-day informative and educational

event focusing on the European venture capital

landscape. This year businessmen, researchers

and policy makers from Southeastern Europe, and

in particular from Bulgaria, Cyprus, the Former

Yugoslav Republic of Macedonia (FYROM),

Greece, Romania, Serbia, Montenegro and the

Eastern Mediterranean, are invited to attend, pres-

ent their business ideas and discuss venture

opportunities in dedicated bilateral meetings.

The forum begins on Tuesday, July 3. After the

opening adderss of Mr Aristide Simeonoglou,

chairman of ELKE, and Mr Ioannis Papaioannou,

chairman of TANEO, there will be presentations on

domestic and international trends in private equity

/ venture capital followed by panel discussions. At

11 a.m. a panel discussion on popular investments

will be held and at 12.30 p.m. another one on

‘Investment Readiness.’ The next two panel dis-

cussions will be on ‘Exit Strategies’ and ‘Realistic

Visions and Visionaries.’ At 4.30 p.m. Giorgos Alo-

goskoufis, Greece’s national economy and finance

minister, will deliver a speech.

The day will close with the presentation of the

‘Best Business Plan Prize.’ For the fourth consec-

utive year, the prizes will be awarded to three

business plans selected by the VCs. The VCs will

evaluate the submitted business plans based on

business ideas, qualities of the management team,

market potentials and expected returns. The first

prize carries a purse of 3,000 euros, the second

2,000 euros and the third 1,000 euros. The prizes

are sponsored by Attica Ventures.

The whole of Wednesday, July 4, will be dedi-

cated to prearranged bilateral business meetings

(by invitation only).

For further information: www.vcforum.gr

In a second volume being published for the first

time, About Brand Greece, special emphasis is

given on recent developments as well as on the way

such developments have helped shape world public

perceptions of our country. Since Greece has been

successful in communicating abroad its contempo-

rary profile and its many comparative advantages

and successes, the world now looks at and under-

stands us on many more levels, and especially in

terms of a peaceful and stable extroverted partner

in South-eastern Europe and the world.

The newest edition of About Greece was recent-

ly published by the Secretariat General of Com-

munication — Secretariat General of Informa-

tion. Featuring articles about a wide range of

topics — from the economy, foreign policy and

history to culture, tourism or sports — this

book provides its readers with an insider’s look

at modern Greece.