The well-respected credit rating and investor service Moody’s issued a new report on Monday stating that most European countries, including Greece, can weather a prolonged tourism slump.
This comes as very welcome news in a year which has seen precipitous drops in European tourism due to coronavirus travel restrictions.
The decline in tourism in the countries of the European South is likely to last beyond 2020, but they can weather a prolonged tourism slump thanks to the adjustments they have made in recent years, the report stated.
The significant support they will also be receiving as a result of the policies of the European Central Bank and the EU recovery fund will also help cushion the blow, according to Moody’s.
The European countries most exposed to the decline in tourism because of the importance of the sector in their economies are Portugal, Greece, Malta, Spain, Cyprus, Croatia and Italy, according to the credit rating service.
The report added, however, that it expects that tourism will remain weak beyond the 2020 travel period.
Despite the lifting of travel bans between EU countries, it explained, continuing consumer health and safety concerns, quarantine rules and economic recession due to the crisis means that the current downturn is increasingly likely to last beyond the summer of 2020.