Greek Tourism Minister Olga Kefalogianni told CNBC’s “Squawk Box Europe” that the formation of a coalition government after the June 17th elections headed by pro-austerity Antonis Samaras has helped bring in reservations back to normal for June, and that there was cause for optimism in the tourism sector.
Data from the Association for Greek Tourism Enterprises (SETE) show international arrivals to Athens fell nearly 15 percent as holiday makers worried their holiday would be disrupted by the effects of political, societal and financial instability in the country.
“We are quite positive that we will have a relatively good year,” Kefalogianni said. “Relative to what’s going on in Greece.”
According to SETE, the tourism industry employs up to 768,000 people and the sharp decline in bookings in the first half of 2012 saw average daily hotel rates drop by 16 percent. Many restaurants and hotels have gone out of business. Kefalogianni said that the country’s privatization program of public assets (including land) could offer an investment opportunity.
Referring to the privatizations, she said, “We are really working very hard to stick to the euro zone. We are working out how the euro can help out economy stabilize so I think [leaving the euro] is not the case for us, right now,” adding that tourism was an important part of saving Greece’s economy.
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