Dubai: Prices of Greek holiday packages are expected to see at least a 10 per cent drop this summer compared with the same period a year ago as fewer holidaymakers from the UAE travel to Greece, according to some travel companies.
At Al Futtaim Travel, holiday packages for Greece are 10-15 per cent cheaper this summer compared with the same period a year ago, according to Micky Bhatia, the company’s general manager. “The threat of withdrawal from the Eurozone will definitely have an effect on the Greek economy and on the price of holiday bookings to the Greek Islands,” he said.
Travellers are keeping away from the European country, which is facing a debt crisis, amid fears that it will exit the Eurozone, potentially leading to social unrest.
“Outbound tourism from the UAE — after adjustment for expats leaves in home countries — will target the usual destinations with an added interest for Schengen countries, with the exception of Greece at this stage given the uncertainty around the ‘Grexit’,” said Chiheb Ben Mahmoud, executive vice-president — head of hotels and hospitality group for the Middle East and Africa at real estate consultancy JLL.
“The uncertainty around the ‘Grexit’ is related to the risk of potential social unrest — strikes — or the unavailability of some public services such as transportation and airport services, [as well as] banking services,” he added.
Greece shut its banks on Monday and imposed capital controls to prevent a financial collapse.
Karan Anandm, head of relationships at Cox & Kings, said by email that the company has seen “a softening of package prices” compared with last summer, but did not say how much. “We understand that tour operators have cautiously reduced prices on holiday packages to Greece, in order to minimise any long term impact should the destination rebound and leaving room for further concessions should the demand continues to lag,” Ben Mahmoud said.
Tourism is a big industry for Greece. Travel and tourism’s direct contribution to the nation’s gross domestic product (GDP) touched €11.8 billion (Dh48.2 billion) in 2014, which is forecast to grow by 3.6 per cent to €12.3 billion in the current year, according to the World Travel and Tourism Council (WTTC). More than 22 million tourists visited the country last year.
Earlier this month, Greece’s alternate tourism minister Elena Kountoura was in Dubai to promote the country as a destination both for travel and investment from the UAE and the Gulf Cooperation Council (GCC) region. Also in April, she visited Saudi Arabia and discussed potential Saudi investments in Greece, with major Saudi firms including Kingdom Holding.
