Foreign Tour Operators Add Default Clause to Greek Deals in Case of Bankruptcy

Amid the tedious and at times troublesome negotiation process between Greece and its foreign creditors, foreign tour operators fearing a possible Grexit, bankruptcy or tax status change in tourism, are now requiring Greek hoteliers to include a default clause in all contracts, local daily Kathimerini reports.

Conference organizers and tour agents are seeking protection in the event that negotiations fail and Greece announces bankruptcy through a default clause, which in effect requires the non-payment of compensation in case the country defaults and events are cancelled.

According to Kathimerini, one conference organizer behind an international event next month has included a default clause in his contract with a hotel enterprise, which would exempt him of compensation in case of cancellation.

Foreign tour operators are also concerned with potential price hikes via VAT and are thus re-examining the financial terms of contracts, which has placed Greek hoteliers at a disadvantage while rival countries are seeking ways to benefit from the unstable political conditions in Greece.