Unemployment to Rise as Arrivals Are Seen to Drop

The Research Institute for Tourism and Forecasts (ITEP) expects arrivals to fall at least by 4.24 percent this year, while tourist traffic from traditional markets are predicted to drop by 4.58 percent.

ITEP said the decrease in arrivals would have a direct impact on employment.

A decrease in 2009 arrivals between five, 10 and 15 percent would lead to job losses of 69,000, 96,000 and 144,000 respectively.

The institute highlighted that required measures must include a central policy towards employment protection.

The proposed measures include the reduction of airport charges, cutbacks in coastal shipping costs and the reduction of the VAT rate to a level that approaches that of rival countries such as Spain and Portugal.

Meanwhile UNWTO concludes that global tourism could drop by two percent this year.