Managing tourism in times of crisisThe case of Greece

George DrakopoulosPresident & CEO tourism generis

Special Adviser, UNWTO

Outline

• Impact of the international crisis on Greek tourism (2008-2009)

• Impact of the Greek crisis on Greek tourism (2010-2015)

• What happened on what level?• Conclusions

Int crisis 2008-2009

International Arrivals Δ 2009-2008World -4.2%Europe -5.7%Greece -6.5%

GR-Basic figures 2008-2015

2008 2015 Δ

GDP (bi Euros)

242 176 -27%

Jobs(mi, all sectors)

4,6 3,6 -22%

Brand performance

(14)

(22)

2010

Brand performance

Expected...

• TOs pressure....

73%

27%incoming domestic

89%

11%

incoming domestic

International vs domestic

2008 2015

Blame the crisis

crisis....bad debt...taxes

strikes... unemploymentsocial unrest... media pressure

cancellations...less arrivals...imagenegative publicity...travel advisory

What happened then?

• Spray & Pray level• Institutional • Supply & Demand • Human Resources

Complicated simplicity

• tourists• investors

• Business community

• EU• IMF• ECB

• voters

Domestic audience

International audience

International audience

Domestic audience

Political Approach

Business Approach

demand/price elasticity

VAT– accommodation– food– drinks– transportation

Institutional

Ministers 5

Deputy Ministers 4

Sec Gen Ministry 5

NTO Chair 5

NTO Sec Gen 4

NTO Special Sec 1

Jan 2008-Dec 2015

Institutional

Jan 2008-Dec 2015 Ministers 5

Deputy Ministers 4

Sec Gen Ministry 5

NTO Chair 5

NTO Sec Gen 4

NTO Special Sec 1

Oct 2009 – Dec 2014

Thank God???

Political consensus

Planning for the future

Heavy Investment

4550

58

More investment

No of Hotel Beds2008 2015 Δ

Total

715,855

779,118 8,8%

5* & 4* 262,364 319,930 22%

VISA facilitation

Solidarity PR

More PR activities

Fam trips for foreign journalists and tour operators from Germany, United Kingdom, Russia & China

Competition Bild: • 100 weeks of holiday• 200 lucky readers

Social media hot

Social media hot

Social media hot

Social media hot

GR-Basic figures 2015

2015

Int Arrivals (mi) 23.6Int Receipts (bi Euros) 14.2

TT % contribution to GDPDirect

Total 7.60 %18.45 %

GR-Basic figures 2008-2015 2008 2015 Δ%

GDP (bi Euros) 242 176 -27%

Int Arrivals (mi) 15.9 23.6 +48%Int Receipts (bi Euros) 11.6 14.2 +22%

TT % contribution to GDPdirect

total 5.28%17.75%

7.60 %18.45 %

+28.8 % +9.8 %

GR Employment (000)

2008 2015 ΔJobs

(mi, all sectors) 4,6 3,6 -22%

Total Travel & Tourism 854 821 -4.1 %

Direct Travel & Tourism 361 401 11.0 %

Success story?

2008 2015 Δ%GDP (bi Euros) -27%

Int Arrivals (mi) +48%Int Receipts (bi Euros) +22%

TT contribution (total) GDP

Employment+2.70% +4.24%

1993-2015, ups & downs

2015

1993

1994

1997

1998

1999

2000

2001

2005

2006

2007

2010

2011

2012

2013

2014

1995

1996

2002

2003

2004

20082009

Decade balancedecade yrs up yrs down

2001-2010 5 5

2002-2011 5 5

2003-2012 5 5

2004-2013 6 4

2005-2014 7 3

2006-2015 8 2

Human resources Lower salaries

but still high social security contributionsTourism educationBrain drain............................... ................... ... ............Talent shortageLack of expertiseService will suffer?

Conclusions here(recommendations next slide)

• Long term plan reference• Proactive to the media• Invest in marketing research• Segmentation of everything• Create PPP structures