Greek Tourism towards 2020

Andreas AndreadisSETE President

MBA ForumThessaloniki, 27 March 2012

ΤΙΤΑΝ

1

SETE aims constantly at boosting competitiveness and demonstrating the key role of tourism in the Greek economy.

SETE is a non-governmental, non-profit organisation.

2

Members fall into two general categories:

A. National Sectoral Tourism Unions

B. Individual Tourism Enterprises

SETE’s Members are:

Regular: 13 Unions of Tourism Enterprises & 491 Tourism Business Units

Associate: 49.800 Tourism Enterprises & 8 Associations of Professionals

   Total number of jobs (except Banks): more than 370.000

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• Represents its Members.

• Promotes the Public-Private Cooperation.

• Promotes cooperation across economic sectors.

• Informs about trends & developments in tourism.

• Member of UNWTO, EESC.

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Tourism’s socioeconomic contribution

  2011Contribution to GDP 16,5%

Direct & indirect employemnt (% in total employment)

18,4%

Direct & indirect employemnt ('000)

758,3

Percentage of trade balance deficit covered by tourism

38,6%

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Tourism’s socioeconomic contribution

2009 • Tourism multiplier = 2,18

Each Euro spent in tourism generates more than double secondary consumption.

• Employment multiplier = 1,87For every one direct job in tourism, almost one more is created in the wider economy.

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Tourism’s socioeconomic contribution

Regional Development

7

Greek tourism capacity 2012

Hotels 9.600Hotel beds 764.000

Rented rooms & apartments (business units)

40.000

Rented rooms & apartments (beds)

600.000

Travel & tourism agencies 4.500

Professional congress organizers

106

Car rental companies 2.300

Rental car fleet 160.000

Tourist coaches 7.500Shipping companies 79

Boats 1.255

Yacht companies 500

Yacht boats 3.500

Air companies 6

Airplanes 79

International airports 29

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Easy to fly 2012•138 airlines fly to Greece.

•153 international airports are connected directly with Greek destinations.

•Aircraft movements:2011 => 180.735 , allocated 2012=> 203.763

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Greek tourism demand

Year Arrivals

%

Change

Receipts

(mi. €)

%

Change

2010 15.007.490   9.611,30  

2011 16.427.247 9,46% 10.519,60 9,45%

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Targets towards 2020

•Greece to be included in the world’s top ten tourism destinations.

•Direct and indirect tourism GVA to reach ~ €50 billion.

•Employment created by tourism to reach ~1.000.000 jobs.

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•Implementation of a simple, attractive and long-term stable tax system.

•Competitive VAT tax rate implemented to tourism services:

-VAT rate (6,5%) on tourism package and transportations.

-VAT rate (13%) on food, beverage and catering services.

•Competitive airport tax rates and improvements in the tariff system of Athens International Airport (AIA):

-50% reduction in airport tax.

- 50% reduction in AIA’s tariffs .

•Simplification of bureaucratic procedures

(licensing and renewals, fast track process etc) .

•Reduction in non-wage cost.

Improvement of the competitiveness economic level

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•Upgrading tourism education and training.

•Revision of land use framework for tourism.

Completion of national cadastre.

•Development of regulatory framework for special forms of tourism.

•Establishment of a Marketing Greece company.

•Development of integrated quality standards for destinations and accommodations.

•Shortening the Schengen visas issuing procedure.

Improvement of the competitiveness functional level

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• Investments in strategic airports and ports. Cooperation with the private sector to manage them. Upgrade of border entrance points.

• In addition to Piraeus, upgrade of 5 more ports as embarkation centers.

• Building new and upgrading current marina capacity.

-Building 30 new marinas and intergrading 20 existing into one modern and unified regulatory framework

(to reach total 85 marinas, 30.000 - 35.000 berths).

Investments

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• Add value to the core product “sea & sun”.

• 50% of the accommodation capacity (hotels & rented rooms) to be on the top two levels, (currently less than 35%).

• 15 - 20 new large integrated resorts and

~50.000 vacation homes.

Investments

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• Upgrade of Greece's role in the international tourism fora, development of bilateral relations, preparation for tourism interventions during the Greek EU Presidency in 2014.

International affairs

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•Development of Athens and Thessaloniki as City Break Destinations.

•Boosting cultural tourism through the upgrade of

cultural sites infrastructure and better visitor management.

•Leadership in “Cruises” and “Sailing/Yachting” in East Mediterranean:

-Cruises: double embarkation share from 10% to 20% and achieving incremental spent of €1 billion by 2021 (50% increase) .

-Sailing/Yachting: incremental of €1billion (100 % increase).

Markets

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• Maintain and increase share in mature markets

(Germany, UK, France etc).

• Gain share in new markets e.g.

Russia, Turkey, Israel, Balkan countries.

• Penetration in new dynamic markets (China, India, Brazil) and in new growing segments (pensioners, students) in mature markets.

Markets

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Thank you for your attention!