Hotels Report Losses For 2008

According to Stat Bank, the total turnover of hotels increased by 4.8 percent and reached 2.7 billion euros.

Stat Bank noted that the results added up from the hotels are “very disappointing” since this is the first year that the number of loss-making enterprises is higher than that of profitable enterprises.

In Stat Bank’s last year’s survey, the percentage of unprofitable firms in the tourism industry amounted to 42 percent of the sample. This year the figure rose to 51 percent.

The survey suggests that Greek hotels are on a downward course as a further reduction of foreign arrivals to Greece is expected for 2009 (up to 10 percent) and therefore tourism revenue is expected to drop as well (minimum 15 percent).

The survey included hotels that had filled out their balance sheet by 10 July 2009.

Stat Bank estimated that the percentage of enterprises that would experience further deterioration of their financial results would be even higher for 2009.