Trade Associations

Greece is emerging as a hub of inter-European networks in the Balkans and hopes to attract large investment schemes in key sectors such as energy and tourism, Development Minister Akis Tsohatzopoulos told a conference on “Greece: The Economic Center of Southeastern Europe” held in London last month.

The government says it will present a comprehensive restructuring plan for the country’s tourism administration. The announcement followed the replacement of government tourism leaders and the reshuffling of responsibilities among the Development Ministry’s General Secretariat for Tourism and the Hellenic Tourism Organization — Constantinos Botopoulos was appointed to head the ministry’s tourism secretariat and Nikos Dimadis took over as the head of the tourism organization.

Greek hoteliers described tourism as being at its lowest ebb in 30 years, “and the government is doing nothing to help,” said Vassilis Miniades, president of the Panhellenic Hoteliers’ Association, during a recent press call.

Greece’s Competition Commission fined Greece’s two biggest airlines, Olympic and Aegean, a total of 210,000 euros for complicity in reducing the commission paid to travel agents, from 9.25 percent to 6.94 percent, on tickets for domestic flights.

If Development Minister Akis Tsohatzopoulos’s recent announcement comes to pass, the Hellenic Tourism Organization will be merged with the development ministry’s general secretariat for tourism and a new company, EOT SA, will undertake Greece’s promotion as a tourism destination, both domestically and abroad.

Development Minister Akis Tsohatzopoulos told journalists last month that the government hoped tourism would soon become “the basic economic factor in our country’s economic and social development.”

By 2010 the Greek tourism sector could create some 150,000 new jobs and thus cover 35% of today’s unemployed, according to a study released last month by the Association of Greek Tourism Enterprises (SETE).

An increase in foreign arrivals during the early part of the summer so far has helped cancel the losses seen in the early part of the year. And in an effort to stem some profiteering, particularly at eating establishments, government inspectors continue to visit tourism destinations to inspect prices and services, according to Development Minister Akis Tsohatzopoulos.

Greek hoteliers continue efforts to pressure government quarters to change depreciation rates for tax purposes from 4% to the 8% it was some two years ago. Representatives from Greek Hotel Chamber and the Association of Greek Tourism Enterprises say they are very disappointed that Economy Minister Nikos Christodoulakis and Development Minister Akis Tsohatzopoulos have not kept their promises to return the rate to 8%.

After 144 proposals from 53 participants in the recent call for a new logo from the Hellenic Tourism Organization, executives of the organization selected 28 proposals and of these six were selected for awards.