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Transcript of Tourism in Greece: Strategic Analysis and Challengescore.ac.uk/download/pdf/101686.pdf · Tourism...
Tourism in Greece Strategic Analysis andChallenges
Dimitrios BuhalisSchool of Management Studies for the Service Sector University of SurreyGuildford GU2 7XH UK
This paper provides a strategic analysis of the competitiveness of Greek tourism Itillustrates the importance of tourism as an economic activity and analyses the currentsituation and structural problems of Greece as a destination Although Greece offersunique nature culture and heritage the lack of differentiation of the tourism productas well as competitive disadvantages in marketing and planning cause anover-dependence on intermediaries for the promotion and distribution of the tourismproduct whilst jeopardising its quality This affects the profitability and competitive-ness of both the destination and its small and medium-sized tourism enterprises Thepaper proposes a grand strategy as well as numerous strategic directions objectivesand tasks aiming to demonstrate the way ahead for Greek tourism Several majoropportunities emerge through the Olympic Games in 2004 as well as the major projectscurrently being undertaken which will enhance the infrastructure of the country It isargued that a consistent tourism policy based on professional development and imple-mented through a Master Plan is urgently required Strategies and methodologies needto be identified whilst private enterprises need to increase their cooperation locally inorder to enhance the quality and competitiveness of the product
Introduction Tourism in Greece From Mythology to a ModernIndustry
Greece has a long tradition in tourism and hospitality mainly due to its historyand ancient civilisation Foreigners were considered sacred in ancient GreeceXenius Zeus the father of gods also became the god of hospitality to protectforeigners and inspire locals to look after their visitors A land of rich economicreligious and intellectual activity for more than three and a half millenniageographically spread on an archipelago of more than 2500 islands located at thesouth-eastern corner of Europe on a crossroad to Africa and Asia inevitablystimulated travel activity since the beginning of recorded history (Briassoulis1993 285 Skoulas 1985 2 EIU 1986 45) In modern times the scientific docu-mentation of tourism in Greece commenced after the Second World War whilemajor tourism development started in the mid-1970s when the unpopularity ofSpanish resorts stimulated demand for alternative Mediterranean destinationsA dramatic increase of tourism flows to Greece in the late 1970s and 1980s wasexperienced facilitated by plenty of natural cultural and environmentalresources existing airport infrastructure in major islands and lower cost ofliving in comparison with most of Europe (EIU 1990 49) Greek resorts havedifferent product and market profiles making them capable of satisfying a greatdiversity of tourism demand (Buhalis 1991 Ottaway 1993 Boniface amp Cooper1994 140 Wickers 1993) The tourism industry grew rapidly especially onisland destinations and regions with historical monuments as demonstrated in
Discussion Web Site httpwwwcommerceotagoacnztourismcurrent-issueshomepagehtm
1368-35000105 0440-42 $16000 copy2001 D BuhalisCurrent Issues in Tourism Vol 4 No 5 2001
440
the spatial analysis of tourism distribution (Komilis 1987 Leontidou 1991Papadopoulos 1989 297ndash300)
Greece is one of the most remote peripheral insular and poor economicregions of the EU Its tourism requires urgent strategic management action inorder to compete with alternative destinations and maximise the prosperity ofthe host population Similar strategic exercises are undertaken by competingdestinations around the globe as they prepare to face the new business realitiesIn Spain for example
the evolution of demand towards a more diversified touristic productoffering better value for money the growing concern for the environmentwhich contradicts the degradation of the surroundings a fragmentedsector structure with low level of professionalism and a substantial growthof competition [especially new destinations which compete in its tradi-tional market segments and enjoy comparative advantages in costprices]have changed the setting of Spanish tourism by constituting a seriousthreat to its competitiveness However these future trends though worry-ing can be considered as opportunities to remodel the strategy of supply ofSpanish tourism (Camison et al 1994 443)
Several resorts and especially Benidorm and Calvia went through a majorface-lift to accommodate the new trends Hence this paper concentrates on thefactors which jeopardise the success of Greek tourism as well as on theirimpacts on the prosperity of the private sector and the local society andattempts to propose a strategic framework for competitiveness enhancementOnly competitive destinations will be able to maximise their benefits in thefuture (Buhalis 2000a) and if Greece would like to benefit from tourism itshould learn from the international experience and adapt its strategic and oper-ational practices
The paper is based on on-going primary and secondary research and benefitsfrom a number of interviews with strategic players in Greek tourism A compre-hensive literature review is also incorporated in order to facilitate furtherresearch on the topic As most destinations are comprised by an amalgam ofsmall and medium-sized tourism enterprises (SMTEs) it is argued that thecompetitiveness and prosperity of destinations are closely interrelated withthose of SMTEs and vice versa This is also reinforced by Porterrsquos (1990) analysisof lsquothe competitive advantage of nationsrsquo where the competitiveness of thegeographical area of business operations is directly influenced by both the exter-nal business environment and the competence of local enterprises As Camison etal (1994 443) state
the conditions determining the competitiveness of a tourist service[whether accommodation catering a theme park a wholesale travelagency etc] and the holiday experience of a tourist find meaning in acertain geographical area (the destination) defined by a multidimensionalrelationship among firms and industries involved transport and commu-nications infrastructure complementary activities [commercial infrastruc-ture tradition of fairs etc] support services [training information etc]natural resources and institutional policies
Tourism in Greece Strategic Analysis and Challenges 441
Following the introduction and the examination of the importance of tourismin the Greek economy (why is tourism important) the paper focuses on the stra-tegic position of Greek tourism A comprehensive auditing is undertaken inorder to assess the current situation and to illuminate the structural problems ofthe industry (where are we now) The analysis of the structural problemsdemonstrate several reasons which determine the strategic situation (why are wethere) while the effects on private sector profitability and the impacts of tour-ism on the host society are illustrated (what are the implications) A strategicframework is provided in order to formulate a grand strategy for Greek tourismand to demonstrate future direction (where do we want to go) Furthermore anumber of strategic directions objectives and tasks demonstrate how the grandstrategy can be implemented while the need for a Master Plan drawn up by thepublic sector and close cooperation of the private sector are prescribed in order tofacilitate the implementation of the strategy (how are we going there)
Why is Tourism Important The Contribution of Tourism to theGreek Economy
The Greek economy is often criticised for failing to develop strong industrialsectors and to establish suitable distribution channels for exporting agricultureTourism is a major contributor to the balance of payments while it is one of thefew activities which would enable Greece to achieve competitive advantagesthrough the redistribution of labour within Europe (Economist 1993 5ndash6) Thus itis a vital motivator of the Greek economy reducing the deficit of the balance ofpayments boosting employment generating income and contributing to regionaldevelopment (Zacharatos 1989 274 Truett amp Truett 1987 178)
Nobody knows the exact contribution of tourism to the Greek economy mainlybecause there is inadequate research on expenditure flows of income and nationalaccounts Tourism is a major export and contributor to both Gross National Product(GNP) and balance of payments The Greek National Tourism Organisation (GNTO)suggests that the tourism contribution to the GDP is estimated at up to 7 Thetourism receipts in 1998 were 5186 millions US covering 293 of the deficit in thebalance of payments and 3983 of the exports of services (wwwgntogr 12 Octo-ber 2000) Paulopoulos (1999) estimates that in 1994 the foreign currency earnedfrom incoming tourism was $9bn providing 18ndash20 of the GNP Tourism income is25 times more than the income generated by industrial products and 18 times morethan the total exports However these figures do not include pre-purchases ofdrachma by tourists abroad credit card payments payments for cruises and otherearnings which have been estimated to increase total receipts by up to 80 (EIU1994 42 and 1993 43 Papadopoulos amp Mirza 1985 133) Tourism is included in theGreek National Accounts as lsquoInvisible Receiptrsquo and since 1989 it has only beensecond to the lsquonet EU contributionsrsquo having overtaken both lsquoshippingrsquo and lsquoemi-grant remittancesrsquo contributions which used to dominate in the past (Epilogi 1994355 Papadopoulos amp Mirza 1985 131 EIU 1990 49)
Tourism is also increasingly recognised as an instrument for regional develop-ment policies especially for socioeconomically depressed and problematic areas(Konsolas amp Zacharatos 1993 57) It is instrumental in developing unfavouredregions and especially insular areas which have little potential to develop local
442 Current Issues in Tourism
handicraft and other industries without tourism demand Consequently in theperiod 1965ndash1980 the tourism output multiplier in Greece was estimated to be 152(Zacharatos 1989 281) Domestic tourism also facilitates a certain degree of redis-tribution of wealth between metropolitan and peripheral regions Not only wasthe emigration pace from the islands diminished especially of young people butalso a trend for rehabitation on the islands has been evident in the last decade asnew job opportunities have emerged (Panagiotopoulou 1990 10 Loukissas 1982537) Tourism also stimulates seasonal migration of professionals in several desti-nations who work at the region for several months every year (Logothetis 199023) Tourism is also a major employer as it is estimated that employment in the tour-ism sector is 10 (61 direct employment and 39 indirect) of the total employ-ment in Greece (wwwgntogr 12 October 2000) Paulopoulos (1999) estimates atotal of 690000 people to be employed in tourism if we include people indirectlyinvolved with tourism with 35 employed yearly 40 for 6ndash8 months and 25only during the peak season for 2ndash3 months About 74 of the labour is employedin accommodation establishments 21 in travel agencies transportation and thepublic sector while a further 5 is occupied in sea transportation (Stereopoulos1995 153) Job opportunities are provided mainly for young people and forwomen who are often self-employed within their household (Kassimati et al 1994Kousis 1989 328) However tourismrsquos contribution to employment is jeopar-dised as increasingly the industry is using self-catering and self-serviced accom-modation and catering (Zacharatos 1989 284)
In reality the contribution of tourism to the Greek economy is substantiallygreater as the official figures ignore the lsquopara-economyrsquo (black or parallel econ-omy) estimated to be as high as 28ndash50 of the official GDP (EIU 1993 25 EIU1990 47) Tourism being a seasonal activity often complements other economicactivities such as agriculture and education and therefore para-economy in tour-ism is even greater than other industries Para-economy includes both interna-tional transfers of funds for tourism products offered within the country as well asthe illegal export of tourism foreign exchange which is re-exported without beingprocessed through the Greek economic system As a result the real impacts oftourism in the economy are largely unknown (Zacharatos 1988 1989)
Where Are We Now Situation Analysis The Greek TourismIndustry and its Competitiveness
The contribution of Greek tourism to the national economy demonstrates themagnitude and complexity of the industry Following a brief demand analysisan examination of tourism supply is undertaken whilst a strengthsndashweak-nessesndashopportunitiesndashthreats (SWOT) analysis demonstrates the competitive-ness of both destination and its SMTEs In addition the paper elaborates on awide range of structural problems and illustrates their effects on the profitabilityof the private sector and on the impacts of tourism at the destination
Tourism demand for GreeceGreece has enjoyed a continuous growth in arrivals since the early 1950s
Despite the lack of any comprehensive tourism demand analysis undertaken bythe GNTO several research documents address the tourism-demand issue for
Tourism in Greece Strategic Analysis and Challenges 443
Greece (Psoinos 1994a 1994b GNTO 1985a Tourismos ke Oikonomia 1993NSSG 1983 1985 1987 1990 1993 Stavrou 1984 1986a 1986c) In 1950 33333foreign tourists passed the borders while this figure rose to almost 11 million in1999 as illustrated in Table 1 Greece comes in the 17th place in the world classifi-cation of tourist destinations There is a concentration in the summer months asin the last ten years in 375 of arrivals were in July and August while the periodMay to September attracted 74 of total arrivals This is clearly reflected on thebednights as illustrated on Table 2 Most visitors (932) originate from Europeand 702 from the EU especially British Germans Swedish Finnish Dutch andAustrians Hence these nationalities are the dominant markets with the Britishand Germans contributing almost half of all arrivals as illustrated in Table 3About 777 came by plane and 605 by chartered flights Although tourismarrivals in Greece were forecasted to reach 20 million by the year 2000 (Jenner ampSmith 1993 161) this was not achieved as a result of increasing competition andincompetent management in both the public and private sectors
In 1999 about 60 million bednights were recorded in all types of accommoda-tion establishments 75 of which were by international tourists Similar to arriv-als the vast majority of the bednights spent in the country were by Europeansespecially British Germans Swedish Finnish Dutch and Austrians Hence thesenationalities are the dominant markets accounting for more than three-quarters ofthe bednights with the British and Germans contributing almost half of allbednights Domestic tourism is also a significant contributor More than 75 oftourists arrived in Greece by air and 58 of the total arrived on charter flightsbecause of the distance from the country of departure In 1985 about 89 of tour-istsrsquo arrivals to Greece were holiday-makers while only 7 travelled for business2 for other reasons and 1 were in transit About 53 of the tourists arriving in1985 had bought an inclusive tour package (GNTO 1985a 8) The inconvenienceof indirect transportation schedules large differentials in charges for groups andindividual customers by accommodation establishments lack of informationabout the Greek tourism product as well as insufficient marketing by SMTEshave enabled tour operators to act as intermediates between consumers and prin-cipals and to play a dominant role in the tourism industry However the develop-ment of the Internet enables prospective visitors to pre-book their packagesindependently and to use cheaper non-frills airlines and leisure fares of scheduleairlines for their transportation
The country has cultural attractions and heritage few other destinations canequal and therefore it can respond to the lsquonew era of tourismrsquo where a greaterdegree of individuality and sophistication will be required by consumers In 1998the average length of stay in the country was 14 days while the average expendi-ture per capita reached a level of $456 Similar results emerged in recent researchalthough the location of the data collection produced a sample containing a higherpercentage of business travellers (Psoinos 1994a 62)
Despite research on motivation attitudes and satisfaction of tourists arriving inGreece being inadequate a few typologies have emerged Fotis (1992 83ndash86) classi-fied holiday-makers in Rhodes in four main categories lsquotranquillersrsquo seeking quietand relaxing holidays lsquoculturersrsquo who include a strong educational and historicalelement in their holidays lsquobudgetersrsquo who are predominately budget-constrainedfamilies and young lsquonightlifersrsquo enjoying nightlife entertainment Similarly
444 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
the spatial analysis of tourism distribution (Komilis 1987 Leontidou 1991Papadopoulos 1989 297ndash300)
Greece is one of the most remote peripheral insular and poor economicregions of the EU Its tourism requires urgent strategic management action inorder to compete with alternative destinations and maximise the prosperity ofthe host population Similar strategic exercises are undertaken by competingdestinations around the globe as they prepare to face the new business realitiesIn Spain for example
the evolution of demand towards a more diversified touristic productoffering better value for money the growing concern for the environmentwhich contradicts the degradation of the surroundings a fragmentedsector structure with low level of professionalism and a substantial growthof competition [especially new destinations which compete in its tradi-tional market segments and enjoy comparative advantages in costprices]have changed the setting of Spanish tourism by constituting a seriousthreat to its competitiveness However these future trends though worry-ing can be considered as opportunities to remodel the strategy of supply ofSpanish tourism (Camison et al 1994 443)
Several resorts and especially Benidorm and Calvia went through a majorface-lift to accommodate the new trends Hence this paper concentrates on thefactors which jeopardise the success of Greek tourism as well as on theirimpacts on the prosperity of the private sector and the local society andattempts to propose a strategic framework for competitiveness enhancementOnly competitive destinations will be able to maximise their benefits in thefuture (Buhalis 2000a) and if Greece would like to benefit from tourism itshould learn from the international experience and adapt its strategic and oper-ational practices
The paper is based on on-going primary and secondary research and benefitsfrom a number of interviews with strategic players in Greek tourism A compre-hensive literature review is also incorporated in order to facilitate furtherresearch on the topic As most destinations are comprised by an amalgam ofsmall and medium-sized tourism enterprises (SMTEs) it is argued that thecompetitiveness and prosperity of destinations are closely interrelated withthose of SMTEs and vice versa This is also reinforced by Porterrsquos (1990) analysisof lsquothe competitive advantage of nationsrsquo where the competitiveness of thegeographical area of business operations is directly influenced by both the exter-nal business environment and the competence of local enterprises As Camison etal (1994 443) state
the conditions determining the competitiveness of a tourist service[whether accommodation catering a theme park a wholesale travelagency etc] and the holiday experience of a tourist find meaning in acertain geographical area (the destination) defined by a multidimensionalrelationship among firms and industries involved transport and commu-nications infrastructure complementary activities [commercial infrastruc-ture tradition of fairs etc] support services [training information etc]natural resources and institutional policies
Tourism in Greece Strategic Analysis and Challenges 441
Following the introduction and the examination of the importance of tourismin the Greek economy (why is tourism important) the paper focuses on the stra-tegic position of Greek tourism A comprehensive auditing is undertaken inorder to assess the current situation and to illuminate the structural problems ofthe industry (where are we now) The analysis of the structural problemsdemonstrate several reasons which determine the strategic situation (why are wethere) while the effects on private sector profitability and the impacts of tour-ism on the host society are illustrated (what are the implications) A strategicframework is provided in order to formulate a grand strategy for Greek tourismand to demonstrate future direction (where do we want to go) Furthermore anumber of strategic directions objectives and tasks demonstrate how the grandstrategy can be implemented while the need for a Master Plan drawn up by thepublic sector and close cooperation of the private sector are prescribed in order tofacilitate the implementation of the strategy (how are we going there)
Why is Tourism Important The Contribution of Tourism to theGreek Economy
The Greek economy is often criticised for failing to develop strong industrialsectors and to establish suitable distribution channels for exporting agricultureTourism is a major contributor to the balance of payments while it is one of thefew activities which would enable Greece to achieve competitive advantagesthrough the redistribution of labour within Europe (Economist 1993 5ndash6) Thus itis a vital motivator of the Greek economy reducing the deficit of the balance ofpayments boosting employment generating income and contributing to regionaldevelopment (Zacharatos 1989 274 Truett amp Truett 1987 178)
Nobody knows the exact contribution of tourism to the Greek economy mainlybecause there is inadequate research on expenditure flows of income and nationalaccounts Tourism is a major export and contributor to both Gross National Product(GNP) and balance of payments The Greek National Tourism Organisation (GNTO)suggests that the tourism contribution to the GDP is estimated at up to 7 Thetourism receipts in 1998 were 5186 millions US covering 293 of the deficit in thebalance of payments and 3983 of the exports of services (wwwgntogr 12 Octo-ber 2000) Paulopoulos (1999) estimates that in 1994 the foreign currency earnedfrom incoming tourism was $9bn providing 18ndash20 of the GNP Tourism income is25 times more than the income generated by industrial products and 18 times morethan the total exports However these figures do not include pre-purchases ofdrachma by tourists abroad credit card payments payments for cruises and otherearnings which have been estimated to increase total receipts by up to 80 (EIU1994 42 and 1993 43 Papadopoulos amp Mirza 1985 133) Tourism is included in theGreek National Accounts as lsquoInvisible Receiptrsquo and since 1989 it has only beensecond to the lsquonet EU contributionsrsquo having overtaken both lsquoshippingrsquo and lsquoemi-grant remittancesrsquo contributions which used to dominate in the past (Epilogi 1994355 Papadopoulos amp Mirza 1985 131 EIU 1990 49)
Tourism is also increasingly recognised as an instrument for regional develop-ment policies especially for socioeconomically depressed and problematic areas(Konsolas amp Zacharatos 1993 57) It is instrumental in developing unfavouredregions and especially insular areas which have little potential to develop local
442 Current Issues in Tourism
handicraft and other industries without tourism demand Consequently in theperiod 1965ndash1980 the tourism output multiplier in Greece was estimated to be 152(Zacharatos 1989 281) Domestic tourism also facilitates a certain degree of redis-tribution of wealth between metropolitan and peripheral regions Not only wasthe emigration pace from the islands diminished especially of young people butalso a trend for rehabitation on the islands has been evident in the last decade asnew job opportunities have emerged (Panagiotopoulou 1990 10 Loukissas 1982537) Tourism also stimulates seasonal migration of professionals in several desti-nations who work at the region for several months every year (Logothetis 199023) Tourism is also a major employer as it is estimated that employment in the tour-ism sector is 10 (61 direct employment and 39 indirect) of the total employ-ment in Greece (wwwgntogr 12 October 2000) Paulopoulos (1999) estimates atotal of 690000 people to be employed in tourism if we include people indirectlyinvolved with tourism with 35 employed yearly 40 for 6ndash8 months and 25only during the peak season for 2ndash3 months About 74 of the labour is employedin accommodation establishments 21 in travel agencies transportation and thepublic sector while a further 5 is occupied in sea transportation (Stereopoulos1995 153) Job opportunities are provided mainly for young people and forwomen who are often self-employed within their household (Kassimati et al 1994Kousis 1989 328) However tourismrsquos contribution to employment is jeopar-dised as increasingly the industry is using self-catering and self-serviced accom-modation and catering (Zacharatos 1989 284)
In reality the contribution of tourism to the Greek economy is substantiallygreater as the official figures ignore the lsquopara-economyrsquo (black or parallel econ-omy) estimated to be as high as 28ndash50 of the official GDP (EIU 1993 25 EIU1990 47) Tourism being a seasonal activity often complements other economicactivities such as agriculture and education and therefore para-economy in tour-ism is even greater than other industries Para-economy includes both interna-tional transfers of funds for tourism products offered within the country as well asthe illegal export of tourism foreign exchange which is re-exported without beingprocessed through the Greek economic system As a result the real impacts oftourism in the economy are largely unknown (Zacharatos 1988 1989)
Where Are We Now Situation Analysis The Greek TourismIndustry and its Competitiveness
The contribution of Greek tourism to the national economy demonstrates themagnitude and complexity of the industry Following a brief demand analysisan examination of tourism supply is undertaken whilst a strengthsndashweak-nessesndashopportunitiesndashthreats (SWOT) analysis demonstrates the competitive-ness of both destination and its SMTEs In addition the paper elaborates on awide range of structural problems and illustrates their effects on the profitabilityof the private sector and on the impacts of tourism at the destination
Tourism demand for GreeceGreece has enjoyed a continuous growth in arrivals since the early 1950s
Despite the lack of any comprehensive tourism demand analysis undertaken bythe GNTO several research documents address the tourism-demand issue for
Tourism in Greece Strategic Analysis and Challenges 443
Greece (Psoinos 1994a 1994b GNTO 1985a Tourismos ke Oikonomia 1993NSSG 1983 1985 1987 1990 1993 Stavrou 1984 1986a 1986c) In 1950 33333foreign tourists passed the borders while this figure rose to almost 11 million in1999 as illustrated in Table 1 Greece comes in the 17th place in the world classifi-cation of tourist destinations There is a concentration in the summer months asin the last ten years in 375 of arrivals were in July and August while the periodMay to September attracted 74 of total arrivals This is clearly reflected on thebednights as illustrated on Table 2 Most visitors (932) originate from Europeand 702 from the EU especially British Germans Swedish Finnish Dutch andAustrians Hence these nationalities are the dominant markets with the Britishand Germans contributing almost half of all arrivals as illustrated in Table 3About 777 came by plane and 605 by chartered flights Although tourismarrivals in Greece were forecasted to reach 20 million by the year 2000 (Jenner ampSmith 1993 161) this was not achieved as a result of increasing competition andincompetent management in both the public and private sectors
In 1999 about 60 million bednights were recorded in all types of accommoda-tion establishments 75 of which were by international tourists Similar to arriv-als the vast majority of the bednights spent in the country were by Europeansespecially British Germans Swedish Finnish Dutch and Austrians Hence thesenationalities are the dominant markets accounting for more than three-quarters ofthe bednights with the British and Germans contributing almost half of allbednights Domestic tourism is also a significant contributor More than 75 oftourists arrived in Greece by air and 58 of the total arrived on charter flightsbecause of the distance from the country of departure In 1985 about 89 of tour-istsrsquo arrivals to Greece were holiday-makers while only 7 travelled for business2 for other reasons and 1 were in transit About 53 of the tourists arriving in1985 had bought an inclusive tour package (GNTO 1985a 8) The inconvenienceof indirect transportation schedules large differentials in charges for groups andindividual customers by accommodation establishments lack of informationabout the Greek tourism product as well as insufficient marketing by SMTEshave enabled tour operators to act as intermediates between consumers and prin-cipals and to play a dominant role in the tourism industry However the develop-ment of the Internet enables prospective visitors to pre-book their packagesindependently and to use cheaper non-frills airlines and leisure fares of scheduleairlines for their transportation
The country has cultural attractions and heritage few other destinations canequal and therefore it can respond to the lsquonew era of tourismrsquo where a greaterdegree of individuality and sophistication will be required by consumers In 1998the average length of stay in the country was 14 days while the average expendi-ture per capita reached a level of $456 Similar results emerged in recent researchalthough the location of the data collection produced a sample containing a higherpercentage of business travellers (Psoinos 1994a 62)
Despite research on motivation attitudes and satisfaction of tourists arriving inGreece being inadequate a few typologies have emerged Fotis (1992 83ndash86) classi-fied holiday-makers in Rhodes in four main categories lsquotranquillersrsquo seeking quietand relaxing holidays lsquoculturersrsquo who include a strong educational and historicalelement in their holidays lsquobudgetersrsquo who are predominately budget-constrainedfamilies and young lsquonightlifersrsquo enjoying nightlife entertainment Similarly
444 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Following the introduction and the examination of the importance of tourismin the Greek economy (why is tourism important) the paper focuses on the stra-tegic position of Greek tourism A comprehensive auditing is undertaken inorder to assess the current situation and to illuminate the structural problems ofthe industry (where are we now) The analysis of the structural problemsdemonstrate several reasons which determine the strategic situation (why are wethere) while the effects on private sector profitability and the impacts of tour-ism on the host society are illustrated (what are the implications) A strategicframework is provided in order to formulate a grand strategy for Greek tourismand to demonstrate future direction (where do we want to go) Furthermore anumber of strategic directions objectives and tasks demonstrate how the grandstrategy can be implemented while the need for a Master Plan drawn up by thepublic sector and close cooperation of the private sector are prescribed in order tofacilitate the implementation of the strategy (how are we going there)
Why is Tourism Important The Contribution of Tourism to theGreek Economy
The Greek economy is often criticised for failing to develop strong industrialsectors and to establish suitable distribution channels for exporting agricultureTourism is a major contributor to the balance of payments while it is one of thefew activities which would enable Greece to achieve competitive advantagesthrough the redistribution of labour within Europe (Economist 1993 5ndash6) Thus itis a vital motivator of the Greek economy reducing the deficit of the balance ofpayments boosting employment generating income and contributing to regionaldevelopment (Zacharatos 1989 274 Truett amp Truett 1987 178)
Nobody knows the exact contribution of tourism to the Greek economy mainlybecause there is inadequate research on expenditure flows of income and nationalaccounts Tourism is a major export and contributor to both Gross National Product(GNP) and balance of payments The Greek National Tourism Organisation (GNTO)suggests that the tourism contribution to the GDP is estimated at up to 7 Thetourism receipts in 1998 were 5186 millions US covering 293 of the deficit in thebalance of payments and 3983 of the exports of services (wwwgntogr 12 Octo-ber 2000) Paulopoulos (1999) estimates that in 1994 the foreign currency earnedfrom incoming tourism was $9bn providing 18ndash20 of the GNP Tourism income is25 times more than the income generated by industrial products and 18 times morethan the total exports However these figures do not include pre-purchases ofdrachma by tourists abroad credit card payments payments for cruises and otherearnings which have been estimated to increase total receipts by up to 80 (EIU1994 42 and 1993 43 Papadopoulos amp Mirza 1985 133) Tourism is included in theGreek National Accounts as lsquoInvisible Receiptrsquo and since 1989 it has only beensecond to the lsquonet EU contributionsrsquo having overtaken both lsquoshippingrsquo and lsquoemi-grant remittancesrsquo contributions which used to dominate in the past (Epilogi 1994355 Papadopoulos amp Mirza 1985 131 EIU 1990 49)
Tourism is also increasingly recognised as an instrument for regional develop-ment policies especially for socioeconomically depressed and problematic areas(Konsolas amp Zacharatos 1993 57) It is instrumental in developing unfavouredregions and especially insular areas which have little potential to develop local
442 Current Issues in Tourism
handicraft and other industries without tourism demand Consequently in theperiod 1965ndash1980 the tourism output multiplier in Greece was estimated to be 152(Zacharatos 1989 281) Domestic tourism also facilitates a certain degree of redis-tribution of wealth between metropolitan and peripheral regions Not only wasthe emigration pace from the islands diminished especially of young people butalso a trend for rehabitation on the islands has been evident in the last decade asnew job opportunities have emerged (Panagiotopoulou 1990 10 Loukissas 1982537) Tourism also stimulates seasonal migration of professionals in several desti-nations who work at the region for several months every year (Logothetis 199023) Tourism is also a major employer as it is estimated that employment in the tour-ism sector is 10 (61 direct employment and 39 indirect) of the total employ-ment in Greece (wwwgntogr 12 October 2000) Paulopoulos (1999) estimates atotal of 690000 people to be employed in tourism if we include people indirectlyinvolved with tourism with 35 employed yearly 40 for 6ndash8 months and 25only during the peak season for 2ndash3 months About 74 of the labour is employedin accommodation establishments 21 in travel agencies transportation and thepublic sector while a further 5 is occupied in sea transportation (Stereopoulos1995 153) Job opportunities are provided mainly for young people and forwomen who are often self-employed within their household (Kassimati et al 1994Kousis 1989 328) However tourismrsquos contribution to employment is jeopar-dised as increasingly the industry is using self-catering and self-serviced accom-modation and catering (Zacharatos 1989 284)
In reality the contribution of tourism to the Greek economy is substantiallygreater as the official figures ignore the lsquopara-economyrsquo (black or parallel econ-omy) estimated to be as high as 28ndash50 of the official GDP (EIU 1993 25 EIU1990 47) Tourism being a seasonal activity often complements other economicactivities such as agriculture and education and therefore para-economy in tour-ism is even greater than other industries Para-economy includes both interna-tional transfers of funds for tourism products offered within the country as well asthe illegal export of tourism foreign exchange which is re-exported without beingprocessed through the Greek economic system As a result the real impacts oftourism in the economy are largely unknown (Zacharatos 1988 1989)
Where Are We Now Situation Analysis The Greek TourismIndustry and its Competitiveness
The contribution of Greek tourism to the national economy demonstrates themagnitude and complexity of the industry Following a brief demand analysisan examination of tourism supply is undertaken whilst a strengthsndashweak-nessesndashopportunitiesndashthreats (SWOT) analysis demonstrates the competitive-ness of both destination and its SMTEs In addition the paper elaborates on awide range of structural problems and illustrates their effects on the profitabilityof the private sector and on the impacts of tourism at the destination
Tourism demand for GreeceGreece has enjoyed a continuous growth in arrivals since the early 1950s
Despite the lack of any comprehensive tourism demand analysis undertaken bythe GNTO several research documents address the tourism-demand issue for
Tourism in Greece Strategic Analysis and Challenges 443
Greece (Psoinos 1994a 1994b GNTO 1985a Tourismos ke Oikonomia 1993NSSG 1983 1985 1987 1990 1993 Stavrou 1984 1986a 1986c) In 1950 33333foreign tourists passed the borders while this figure rose to almost 11 million in1999 as illustrated in Table 1 Greece comes in the 17th place in the world classifi-cation of tourist destinations There is a concentration in the summer months asin the last ten years in 375 of arrivals were in July and August while the periodMay to September attracted 74 of total arrivals This is clearly reflected on thebednights as illustrated on Table 2 Most visitors (932) originate from Europeand 702 from the EU especially British Germans Swedish Finnish Dutch andAustrians Hence these nationalities are the dominant markets with the Britishand Germans contributing almost half of all arrivals as illustrated in Table 3About 777 came by plane and 605 by chartered flights Although tourismarrivals in Greece were forecasted to reach 20 million by the year 2000 (Jenner ampSmith 1993 161) this was not achieved as a result of increasing competition andincompetent management in both the public and private sectors
In 1999 about 60 million bednights were recorded in all types of accommoda-tion establishments 75 of which were by international tourists Similar to arriv-als the vast majority of the bednights spent in the country were by Europeansespecially British Germans Swedish Finnish Dutch and Austrians Hence thesenationalities are the dominant markets accounting for more than three-quarters ofthe bednights with the British and Germans contributing almost half of allbednights Domestic tourism is also a significant contributor More than 75 oftourists arrived in Greece by air and 58 of the total arrived on charter flightsbecause of the distance from the country of departure In 1985 about 89 of tour-istsrsquo arrivals to Greece were holiday-makers while only 7 travelled for business2 for other reasons and 1 were in transit About 53 of the tourists arriving in1985 had bought an inclusive tour package (GNTO 1985a 8) The inconvenienceof indirect transportation schedules large differentials in charges for groups andindividual customers by accommodation establishments lack of informationabout the Greek tourism product as well as insufficient marketing by SMTEshave enabled tour operators to act as intermediates between consumers and prin-cipals and to play a dominant role in the tourism industry However the develop-ment of the Internet enables prospective visitors to pre-book their packagesindependently and to use cheaper non-frills airlines and leisure fares of scheduleairlines for their transportation
The country has cultural attractions and heritage few other destinations canequal and therefore it can respond to the lsquonew era of tourismrsquo where a greaterdegree of individuality and sophistication will be required by consumers In 1998the average length of stay in the country was 14 days while the average expendi-ture per capita reached a level of $456 Similar results emerged in recent researchalthough the location of the data collection produced a sample containing a higherpercentage of business travellers (Psoinos 1994a 62)
Despite research on motivation attitudes and satisfaction of tourists arriving inGreece being inadequate a few typologies have emerged Fotis (1992 83ndash86) classi-fied holiday-makers in Rhodes in four main categories lsquotranquillersrsquo seeking quietand relaxing holidays lsquoculturersrsquo who include a strong educational and historicalelement in their holidays lsquobudgetersrsquo who are predominately budget-constrainedfamilies and young lsquonightlifersrsquo enjoying nightlife entertainment Similarly
444 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
handicraft and other industries without tourism demand Consequently in theperiod 1965ndash1980 the tourism output multiplier in Greece was estimated to be 152(Zacharatos 1989 281) Domestic tourism also facilitates a certain degree of redis-tribution of wealth between metropolitan and peripheral regions Not only wasthe emigration pace from the islands diminished especially of young people butalso a trend for rehabitation on the islands has been evident in the last decade asnew job opportunities have emerged (Panagiotopoulou 1990 10 Loukissas 1982537) Tourism also stimulates seasonal migration of professionals in several desti-nations who work at the region for several months every year (Logothetis 199023) Tourism is also a major employer as it is estimated that employment in the tour-ism sector is 10 (61 direct employment and 39 indirect) of the total employ-ment in Greece (wwwgntogr 12 October 2000) Paulopoulos (1999) estimates atotal of 690000 people to be employed in tourism if we include people indirectlyinvolved with tourism with 35 employed yearly 40 for 6ndash8 months and 25only during the peak season for 2ndash3 months About 74 of the labour is employedin accommodation establishments 21 in travel agencies transportation and thepublic sector while a further 5 is occupied in sea transportation (Stereopoulos1995 153) Job opportunities are provided mainly for young people and forwomen who are often self-employed within their household (Kassimati et al 1994Kousis 1989 328) However tourismrsquos contribution to employment is jeopar-dised as increasingly the industry is using self-catering and self-serviced accom-modation and catering (Zacharatos 1989 284)
In reality the contribution of tourism to the Greek economy is substantiallygreater as the official figures ignore the lsquopara-economyrsquo (black or parallel econ-omy) estimated to be as high as 28ndash50 of the official GDP (EIU 1993 25 EIU1990 47) Tourism being a seasonal activity often complements other economicactivities such as agriculture and education and therefore para-economy in tour-ism is even greater than other industries Para-economy includes both interna-tional transfers of funds for tourism products offered within the country as well asthe illegal export of tourism foreign exchange which is re-exported without beingprocessed through the Greek economic system As a result the real impacts oftourism in the economy are largely unknown (Zacharatos 1988 1989)
Where Are We Now Situation Analysis The Greek TourismIndustry and its Competitiveness
The contribution of Greek tourism to the national economy demonstrates themagnitude and complexity of the industry Following a brief demand analysisan examination of tourism supply is undertaken whilst a strengthsndashweak-nessesndashopportunitiesndashthreats (SWOT) analysis demonstrates the competitive-ness of both destination and its SMTEs In addition the paper elaborates on awide range of structural problems and illustrates their effects on the profitabilityof the private sector and on the impacts of tourism at the destination
Tourism demand for GreeceGreece has enjoyed a continuous growth in arrivals since the early 1950s
Despite the lack of any comprehensive tourism demand analysis undertaken bythe GNTO several research documents address the tourism-demand issue for
Tourism in Greece Strategic Analysis and Challenges 443
Greece (Psoinos 1994a 1994b GNTO 1985a Tourismos ke Oikonomia 1993NSSG 1983 1985 1987 1990 1993 Stavrou 1984 1986a 1986c) In 1950 33333foreign tourists passed the borders while this figure rose to almost 11 million in1999 as illustrated in Table 1 Greece comes in the 17th place in the world classifi-cation of tourist destinations There is a concentration in the summer months asin the last ten years in 375 of arrivals were in July and August while the periodMay to September attracted 74 of total arrivals This is clearly reflected on thebednights as illustrated on Table 2 Most visitors (932) originate from Europeand 702 from the EU especially British Germans Swedish Finnish Dutch andAustrians Hence these nationalities are the dominant markets with the Britishand Germans contributing almost half of all arrivals as illustrated in Table 3About 777 came by plane and 605 by chartered flights Although tourismarrivals in Greece were forecasted to reach 20 million by the year 2000 (Jenner ampSmith 1993 161) this was not achieved as a result of increasing competition andincompetent management in both the public and private sectors
In 1999 about 60 million bednights were recorded in all types of accommoda-tion establishments 75 of which were by international tourists Similar to arriv-als the vast majority of the bednights spent in the country were by Europeansespecially British Germans Swedish Finnish Dutch and Austrians Hence thesenationalities are the dominant markets accounting for more than three-quarters ofthe bednights with the British and Germans contributing almost half of allbednights Domestic tourism is also a significant contributor More than 75 oftourists arrived in Greece by air and 58 of the total arrived on charter flightsbecause of the distance from the country of departure In 1985 about 89 of tour-istsrsquo arrivals to Greece were holiday-makers while only 7 travelled for business2 for other reasons and 1 were in transit About 53 of the tourists arriving in1985 had bought an inclusive tour package (GNTO 1985a 8) The inconvenienceof indirect transportation schedules large differentials in charges for groups andindividual customers by accommodation establishments lack of informationabout the Greek tourism product as well as insufficient marketing by SMTEshave enabled tour operators to act as intermediates between consumers and prin-cipals and to play a dominant role in the tourism industry However the develop-ment of the Internet enables prospective visitors to pre-book their packagesindependently and to use cheaper non-frills airlines and leisure fares of scheduleairlines for their transportation
The country has cultural attractions and heritage few other destinations canequal and therefore it can respond to the lsquonew era of tourismrsquo where a greaterdegree of individuality and sophistication will be required by consumers In 1998the average length of stay in the country was 14 days while the average expendi-ture per capita reached a level of $456 Similar results emerged in recent researchalthough the location of the data collection produced a sample containing a higherpercentage of business travellers (Psoinos 1994a 62)
Despite research on motivation attitudes and satisfaction of tourists arriving inGreece being inadequate a few typologies have emerged Fotis (1992 83ndash86) classi-fied holiday-makers in Rhodes in four main categories lsquotranquillersrsquo seeking quietand relaxing holidays lsquoculturersrsquo who include a strong educational and historicalelement in their holidays lsquobudgetersrsquo who are predominately budget-constrainedfamilies and young lsquonightlifersrsquo enjoying nightlife entertainment Similarly
444 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Greece (Psoinos 1994a 1994b GNTO 1985a Tourismos ke Oikonomia 1993NSSG 1983 1985 1987 1990 1993 Stavrou 1984 1986a 1986c) In 1950 33333foreign tourists passed the borders while this figure rose to almost 11 million in1999 as illustrated in Table 1 Greece comes in the 17th place in the world classifi-cation of tourist destinations There is a concentration in the summer months asin the last ten years in 375 of arrivals were in July and August while the periodMay to September attracted 74 of total arrivals This is clearly reflected on thebednights as illustrated on Table 2 Most visitors (932) originate from Europeand 702 from the EU especially British Germans Swedish Finnish Dutch andAustrians Hence these nationalities are the dominant markets with the Britishand Germans contributing almost half of all arrivals as illustrated in Table 3About 777 came by plane and 605 by chartered flights Although tourismarrivals in Greece were forecasted to reach 20 million by the year 2000 (Jenner ampSmith 1993 161) this was not achieved as a result of increasing competition andincompetent management in both the public and private sectors
In 1999 about 60 million bednights were recorded in all types of accommoda-tion establishments 75 of which were by international tourists Similar to arriv-als the vast majority of the bednights spent in the country were by Europeansespecially British Germans Swedish Finnish Dutch and Austrians Hence thesenationalities are the dominant markets accounting for more than three-quarters ofthe bednights with the British and Germans contributing almost half of allbednights Domestic tourism is also a significant contributor More than 75 oftourists arrived in Greece by air and 58 of the total arrived on charter flightsbecause of the distance from the country of departure In 1985 about 89 of tour-istsrsquo arrivals to Greece were holiday-makers while only 7 travelled for business2 for other reasons and 1 were in transit About 53 of the tourists arriving in1985 had bought an inclusive tour package (GNTO 1985a 8) The inconvenienceof indirect transportation schedules large differentials in charges for groups andindividual customers by accommodation establishments lack of informationabout the Greek tourism product as well as insufficient marketing by SMTEshave enabled tour operators to act as intermediates between consumers and prin-cipals and to play a dominant role in the tourism industry However the develop-ment of the Internet enables prospective visitors to pre-book their packagesindependently and to use cheaper non-frills airlines and leisure fares of scheduleairlines for their transportation
The country has cultural attractions and heritage few other destinations canequal and therefore it can respond to the lsquonew era of tourismrsquo where a greaterdegree of individuality and sophistication will be required by consumers In 1998the average length of stay in the country was 14 days while the average expendi-ture per capita reached a level of $456 Similar results emerged in recent researchalthough the location of the data collection produced a sample containing a higherpercentage of business travellers (Psoinos 1994a 62)
Despite research on motivation attitudes and satisfaction of tourists arriving inGreece being inadequate a few typologies have emerged Fotis (1992 83ndash86) classi-fied holiday-makers in Rhodes in four main categories lsquotranquillersrsquo seeking quietand relaxing holidays lsquoculturersrsquo who include a strong educational and historicalelement in their holidays lsquobudgetersrsquo who are predominately budget-constrainedfamilies and young lsquonightlifersrsquo enjoying nightlife entertainment Similarly
444 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Tourism in Greece Strategic Analysis and Challenges 445
Table 1 Tourism demand and supply figures for Greece during the period 1950ndash1995
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1950 33333 ndash ndash 4735 1421951 40568 ndash ndash 5933 1461952 68184 ndash ndash 9583 1411953 94410 ndash ndash 22721 2411954 157618 1273105 ndash 25321 1611955 195852 1351312 ndash 29123 1491956 218301 1594088 ndash 31213 1521957 261738 2041096 ndash 41374 1661958 276534 2069722 ndash 36196 1421959 339802 2552271 ndash 41667 1381960 399438 2963478 ndash 49260 1411961 494191 3934522 57022 62469 1421962 597924 4921803 60945 75986 1401963 741193 6129500 65604 95415 1421964 757495 5102121 71741 90800 1351965 976125 6158300 78487 107575 1271966 1131730 8810300 85323 143458 1441967 996473 ndash 90362 126768 1491968 1017621 ndash 98631 120263 1371969 1305951 6212000 108180 140470 1311970 1609210 7683639 118859 193556 1551971 2257994 11224000 135103 305299 1711972 2731587 14687325 151420 392700 1761973 3177682 15698030 166552 514900 1971974 2188304 10214164 175161 436600 2531975 3172968 13574801 185275 643600 2441976 4243563 19202614 213431 823700 2251977 4597354 18714446 231797 980600 2481978 5081033 22259598 247040 1326300 2931979 5798360 26672482 265550 1662300 3181980 5271115 27170344 278045 1733500 3611981 5577109 28171610 285860 1881000 3691982 5463060 29954664 301230 1527200 3031983 5258372 27216605 317920 1175700 2461984 6027266 32821789 333820 1312800 2381985 7039428 35709851 348170 1428000 2171986 7339015 35450027 359380 1834200 2611987 8053052 35755308 375370 2268100 2971988 8351182 36000000 395810 2396100 3051989 8540962 34157667 423790 1976000 2451990 9310492 36289604 438360 2575000 2901991 8271258 29873046 459300 2566100 319
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Wickens (1994 819 and 2000) classified tourists arriving in Pefkochori as lsquocul-tural heritagersquo type interested in the natural beauties of Greece as well as itsculture and history lsquoraversrsquo attracted by the cheapness of the resort particularlythe cheapness and availability of alcohol as well as the sun beach and nightlifelsquoShirley Valentinesrsquo who are women on a mono-gender holiday who hope forromance and sexual adventure with a lsquoGreek Godrsquo based on the Greek malestereotype which has been perpetuated by newspapers and the film ShirleyValentine lsquoheliolatrousrsquo tourists who are sun-worshippers trying indefatigablyto change their colour and finally lsquoLord Byronsrsquo who undertake an annual ritualreturn to the same destination and experience the real flavour of Greek hospital-ity and ambience Although these typologies provide an initial demand profilethe strategic analysis and the positioning of the Greek tourism product will beimpossible without further research undertaken on the characteristics needsmotivations and behaviour of tourists
446 Current Issues in Tourism
Year Arrivals Bednights Bedcapacity
Expenditure(million $)
Expenditureper capita
1992 9756012 36260299 475800 3268400 3501993 9913267 36747968 499606 3335200 3541994 11301722 40657544 486518 3904900 3461995 10658114 38889975 534703 4294000 4031996 9782061 47945506 550692 3723100 3811997 10588489 53364507 560957 3772200 3561998 11363822 56549442 577759 5186100 4561999 10970665 60256902 584714 NA NA
Source Adapted from the Greek National Tourism Organisation and National Statistical Service ofGreece
Table 2 Nights spent by foreign tourists and Greek nationals in hotels and similarestablishments by month
Month Year Variation
1996 1997 1998 1999 9796 9897 9998January 867638 946798 1005719 1066084 912 622 600February 928305 933592 998977 1060008 057 700 611March 1250226 1369751 1273310 1448624 956 ndash704 1377April 2766116 2822243 2905546 2864693 203 295 ndash141May 5258710 5923093 6229116 6617666 1263 517 624June 6405495 7075829 7530343 8342167 1046 642 1078July 7965179 9003064 9872757 10723835 1303 966 862August 9551439 10878827 11661790 11805077 1390 720 123September 6993686 7822329 8224367 8756290 1185 514 647October 4113665 4419861 4640619 5234218 744 499 1279November 1032350 1113342 1175950 1245219 785 562 589December 812697 1055778 1030948 1093021 2991 ndash235 602Total 47945506 53364507 56549442 60256902 1130 597 656
Source Greek National Tourism Organisation and National Statistical Service of Greece
Table 1 (cont) Tourism demand and supply figures for Greece during the period1950ndash1995
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Tab
le 3
Arr
ival
s of
for
eign
tou
rist
s at
fron
tier
s by
cit
izen
ship
199
1ndash19
99
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
238
453
128
211
191
619
298
843
586
182
673
061
Au
stri
a28
831
734
525
928
863
634
809
134
730
135
960
438
811
845
019
550
160
2B
elgi
um
-Lu
xem
bou
rg17
975
422
509
922
403
626
514
824
557
221
356
722
931
027
367
433
291
3B
ulg
aria
157
910
140
725
144
534
133
764
136
504
154
765
182
338
197
347
202
848
Fran
ce47
094
554
222
255
464
461
856
555
179
846
273
242
667
848
620
154
598
1G
erm
any
156
111
31
944
704
206
937
92
404
628
227
291
11
907
863
199
467
02
136
515
245
013
7Fo
rmer
Yu
gosl
avia
518
644
934
1319
179
227
930
127
034
724
717
1Y
ugo
slav
ia27
089
426
076
423
149
619
899
920
163
310
307
7Fy
rom
37
809
586
911
128
051
Den
mar
k21
188
328
123
525
362
231
888
532
436
929
895
934
426
129
253
233
624
8Sw
itze
rlan
d12
624
116
312
616
499
919
332
725
907
225
642
529
573
128
938
730
813
8U
K1
674
875
215
485
02
191
347
241
862
82
224
885
168
799
91
711
942
204
424
32
433
033
Irel
and
440
8557
885
627
8069
928
622
5254
050
454
0944
524
486
49Sp
ain
104
655
119
964
118
967
122
773
949
2079
717
713
1496
905
992
88It
aly
517
145
622
619
625
509
722
652
643
473
491
081
533
303
659
688
745
915
Cyp
rus
104
041
107
029
904
1292
372
980
5985
893
131
441
126
992
139
386
Nor
way
683
9695
898
102
452
143
257
142
013
157
722
160
457
226
282
269
419
Net
herl
and
s45
006
554
618
751
087
255
659
350
561
645
217
946
414
454
833
961
680
7H
ung
ary
107
685
107
403
739
9910
510
291
170
113
657
145
192
186
147
123
280
Ukr
ain
e10
742
106
5212
942
270
1728
084
328
43R
uss
ia10
147
412
918
418
056
020
079
412
741
710
491
0P
olan
d47
535
437
8834
292
310
1849
665
889
4710
179
312
264
711
515
2P
ortu
gal
165
8626
245
209
1921
581
208
5815
856
131
2513
713
210
34R
oman
ia17
919
196
8318
862
254
7438
868
510
1251
854
634
3972
689
Swed
en26
194
631
425
131
703
038
763
945
927
644
825
747
248
146
761
746
879
3C
zech
oslo
vaki
a13
012
919
158
589
642
Cze
ch R
epu
blic
788
4610
788
217
708
717
406
817
809
417
450
8Sl
ovak
ia15
102
135
3628
431
303
8355
291
462
17
Current Issues in Tourism 447
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Cou
ntry
1991
1992
1993
1994
1995
1996
1997
1998
19
99
Fin
lan
d21
613
117
209
911
651
813
743
410
255
312
083
714
846
114
933
718
897
1O
ther
Eu
rop
ean
809
9510
439
420
537
325
209
328
8280
128
575
4134
967
370
63T
otal
EU
485
017
46
521
010
663
629
17
519
381
785
578
46
592
701
684
321
67
663
483
878
937
1T
otal
Eu
rop
e7
356
995
841
966
38
470
616
986
5986
936
382
98
419
060
927
776
210
174
303
113
200
13Ja
pan
579
0210
968
089
907
953
6789
457
871
3585
029
871
3083
971
Isra
el36
989
350
6545
815
414
0554
264
749
8082
386
894
0215
498
7L
eban
on
Syri
a15
637
159
2214
924
139
7415
651
183
5716
165
177
9818
347
Tu
rkey
535
3173
650
149
390
733
8849
018
474
1644
741
698
7580
502
Iran
422
66
794
761
56
458
596
05
319
373
03
848
380
9O
ther
Mid
dle
Eas
t5
474
804
88
014
562
37
919
124
108
300
638
27
854
Oth
er A
sian
448
5955
467
545
0663
611
111
547
167
380
145
515
841
3984
806
Tot
al A
sia
218
618
304
626
370
171
998
2633
381
641
299
738
586
635
857
443
427
6E
gyp
tSu
dan
200
2019
525
196
0918
540
214
4919
865
193
6317
604
240
45So
uth
Afr
ica
135
2716
944
146
8712
559
120
628
909
874
87
339
101
96O
ther
Afr
ica
179
4814
660
142
4212
145
151
7514
797
143
2413
795
137
99T
otal
Afr
ica
514
9551
129
485
3843
244
486
8643
571
424
3538
738
480
40A
rgen
tina
509
28
655
879
411
530
970
38
176
440
84
238
508
9B
razi
l8
523
899
98
555
107
4410
851
966
18
062
629
94
531
Mex
ico
364
26
535
533
65
318
453
93
385
225
82
052
420
0U
SA80
429
278
941
256
719
270
777
239
684
222
130
240
555
219
362
229
314
Can
ada
471
0159
807
514
7256
650
503
0943
966
477
2250
512
516
80O
ther
Am
eric
an10
983
152
5412
468
904
38
694
108
2611
052
904
410
447
Tot
al A
mer
ica
255
770
378
191
343
344
364
062
323
780
298
144
314
057
291
507
305
261
Au
stra
lia66
566
696
5856
064
615
5654
453
543
1146
692
427
9650
516
Oth
er O
cean
ic8
489
803
56
930
726
85
613
521
23
513
101
285
982
Tot
al O
cean
ia75
055
776
9362
994
688
2460
066
595
2350
205
529
2456
498
Form
er U
SSR
781
9410
005
811
716
0T
otal
803
612
79
331
360
941
282
310
641
942
101
301
779
233
295
100
703
2510
916
046
216
408
8C
ruis
es23
513
142
465
250
044
458
891
258
196
854
876
651
816
444
777
644
184
0G
ran
d to
tal
827
125
89
756
012
991
326
711
230
854
107
121
459
782
061
105
884
8911
363
822
126
059
28
Fo
rmer
Yu
gosl
av R
epu
blic
of
Mac
edon
iaSo
urce
Gre
ek N
atio
nal
Tou
rism
Org
anis
atio
n a
nd N
atio
nal S
tati
stic
al S
ervi
ce o
f G
reec
e
448 Tourism in Greece Strategic Analysis and Challenges
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Tourism supply in Greek tourismA modern industry has emerged since the 1950s to cater for the tourism
demand The Greek tourism product is an amalgam of natural cultural and heri-tage attractions spread throughout the country as well as a wide variety of servicesoffered predominantly by SMTEs Moreover 15000 miles of coastline 2500islands an average of 300 sunny days annually a unique fauna and flora as well asclimatic superiority with mild winters and warm summers are some of its naturalattractions The Greek civilisation of more than 3500 years also provides plentifulcultural heritage throughout the country Some rsquo25000 registered and protectedmonuments and archaeological sites numerous museums and about 500 charac-teristic traditional settlementsrsquo offer a unique blend of tourist attractions (Buckleyamp Papadopoulos 1986 96 EIU 1986) As far as amenities are concerned a plethoraof SMTEs provide the entire variety of services
In January 2000 a total of 8100 official accommodation establishments with atotal capacity of almost 600000 beds are provided in different categories asdemonstrated in Table 4 Another 450000 beds are provided by some 28000secondary accommodation establishments such as lsquorooms to letrsquo and self-cateringapartments often referred to as lsquoparahoteleriarsquo In addition 11000 beds in cruiseliners and 12000 in yachts as well as 329 camping sites with 30354 pitches and83000 camping spaces accommodate all types of demand (GNTO) Eurostat esti-mates that about 20000 restaurants operate in Greece while a countless number ofcatering and entertainment establishments are on offer Furthermore some 7000travel agencies 1500 coach rental and 4000 car rental firms are estimated to operatethroughout the country (EC 1993a)
Accessibility is facilitated through 32 airports most of which can receive directinternational charter flights An extensive domestic scheduled flights network isprovided by Olympic Airways as well as by newly established private carrierswhich take advantage of the increasingly deregulated skies The proliferation ofprivate airlines (eg Aegean Cronus Axon Air Greece) during the last five yearsand the price wars with the state-owned Olympic Airways have increased bothdomestic and international traffic Moreover a complex network of sea road andrail transport enables passenger transportation throughout the country(Briassoulis 1993 291) During the last decade there has been a remarkableimprovement to the quality and ability of vessels as the Greek shipping industryprepares for the lifting of cabotage in 2002 which will enable European shippinglines to operate on Greek routes However recent tragedies involving olderGreek ferries pressurised the Ministry of Merchant Marine to take action in orderto improve the safety and security of the vessels and to ensure the adequate train-ing of crews In addition Piraeus port needs the development of a modernpassenger terminal to provide adequate service
Unfortunately the Greek infrastructure is incapable of supporting the tourismsuperstructure growth of the last decades and thus telecommunications transpor-tation police and health services water supply and sewage systems are underextreme pressure in the summer peak months to satisfy the demand density(Konsolas amp Zacharatos 1993 63 and EIU 1990 61) Nevertheless during the lastdecade several major projects have been initiated including the Metro and the newairport in Athens a wide network of motorways and the gradual development of
Tourism in Greece Strategic Analysis and Challenges 449
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Tab
le 4
Acc
omm
odat
ion
esta
blis
hm
ent b
y re
gion
and
cat
egor
y in
199
9
Tot
alLu
xury
A C
ateg
ory
B C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea1
236
493
9892
877
225
368
101
4480
780
514
644
191
120
5722
605
Pel
opon
isos
660
230
1043
846
466
11
377
554
889
925
012
96
825
130
22Io
nio
595
332
8663
683
61
340
255
378
930
817
911
139
894
617
107
Ipir
os24
24
868
938
51
5411
611
446
884
381
478
284
4N
orth
ern
Aeg
ean
550
108
7220
792
450
11
090
231
364
257
498
374
97
125
Cre
te1
214
604
8911
396
021
508
510
034
166
188
9335
608
263
139
9826
904
Dod
ekan
isa
887
545
0710
436
68
324
26
227
127
224
8442
924
201
106
0120
161
Cyc
lad
es73
718
406
352
483
176
341
963
108
587
014
03
824
731
7T
hes
saly
575
119
9522
939
439
978
150
150
52
980
672
626
494
9M
aced
onia
983
335
1372
943
41
046
184
255
231
913
698
168
100
3619
140
Th
race
702
470
467
50
00
418
134
522
110
22
103
Tot
al7
749
302
814
584
714
7717
872
345
0574
572
302
146
688
145
675
242
143
277
C C
ateg
ory
D C
ateg
ory
E C
ateg
ory
Reg
ion
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Uni
tsR
oom
sB
eds
Ster
ea60
318
193
339
6519
43
712
703
814
62
263
448
1P
elop
onis
os32
68
818
166
4894
135
02
625
4246
792
4Io
nio
380
119
2822
722
571
114
212
136
650
126
9Ip
iros
992
362
451
519
356
682
1417
234
4N
orth
ern
Aeg
ean
199
442
78
400
2840
477
333
427
830
Cre
te67
820
123
369
0397
163
12
995
5175
91
516
Dod
ekan
isa
495
163
7530
686
611
076
293
956
729
142
9C
ycla
des
367
835
715
977
100
152
22
922
104
141
92
821
Th
essa
ly24
15
723
107
7853
962
186
159
780
159
0M
aced
onia
491
124
0723
497
351
687
013
066
6083
51
700
Th
race
2886
81
614
1125
949
35
6012
0T
otal
390
710
958
120
570
51
065
192
5637
515
606
856
117
024
Sour
ce G
NT
O D
ept o
f Acc
omm
odat
ion
Est
abli
shm
ents
450 Tourism in Greece Strategic Analysis and Challenges
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
the railtrack These developments will change the entire infrastructure of thecountry
The implementation of the Greek national tourism policy is supervised by theGreek National Tourism Organisation (GNTO) and the Ministry of TourismThe two organisations share the responsibilities for planning implementationand promotion of Greek tourism at national and regional level as well as coordi-nating the involvement of the public and private sectors in all tourism activitiesPublic investment in commercial facilities was utilised in the early days ofGreek tourism to stimulate both tourism demand and the private sectorrsquos confi-dence to invest The GNTO operates 21 regional and 25 overseas offices in 18countries worldwide (Konsolas amp Zacharatos 1993 59 Leontidou 1991Briassoulis 1993)
The Greek tourism product is distributed to the international market predomi-nantly through European tour operators which organise package holidays andinclude resorts in their programmes Some 800 tour operators distribute the Greektourism product More than 7000 incoming travel agencies often act as tour opera-torsrsquo handling agencies while providing a variety of tourism services such asorganisation of excursions currency exchange and accommodation bookingsdirectly to consumers They usually participate in negotiations between tour oper-ators and accommodation establishments as well as cooperate with tour operatorsrsquorepresentatives at destinations In addition the GNTO operates several informa-tion offices at major resorts whilst several local authorities provide tourist infor-mation as well as distribute promotional material and make local bookings Theglobal GNTO network distributes information material to potential tourists aswell as undertakes all the marketing and public relations functions both for indi-vidual and institutional customers
SWOT analysis for Greek tourism and small and medium-sized tourismenterprises
A SWOT analysis is undertaken for the Greek tourism as well as its SMTEs inorder to assess their present and projected competitiveness based on strategicmanagement research undertaken for the Aegean islands (Buhalis 1991 Cooperamp Buhalis 1992) The interrelations between SMTEs and destinations are quiteapparent illustrating that a destinationsrsquo weaknesses and threats are reflected inthe SMTEsrsquo competitiveness and vice versa As illustrated in Table 5 the SWOTanalysis concentrates on the strategic rather than operational strengths andweaknesses of SMTEs
As far as strengths of the Greek tourism and SMTEs are concerned their flexi-bility and ability to tailor products to consumersrsquo needs are of great importanceto their existence SMTEs can identify profitable niches in the market establishtheir requirements and attempt to satisfy specialised needs Direct control byentrepreneurs permits quick and efficient managerial reaction to external chal-lenges Fewer hierarchical levels facilitate closer and more effective control overthe service delivery process enabling personal services to customers In addi-tion archaeological heritage natural and cultural resources as well as the localcharacter are also significant assets As a result tourists benefit from localresources which are ideally situated to offer special-interest holidays SMTEsalso capitalise on personal relationships with consumers suppliers labour and
Tourism in Greece Strategic Analysis and Challenges 451
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
the entire tourism industry in general Their size enables the provision of apersonal finish to all products provided while it is not unusual for customers tobecome friends and to be treated accordingly Similarly strong relations withemployees support labour loyalty and low turnover The proprietorrsquos family isnormally directly involved with every aspect of the business reacting efficientlyand promptly to any problem arising Their involvement in running the enter-prise provides considerable benefits especially in having a very flexiblemulti-skilled and dedicated workforce which tolerates unsociable workingschedules Family members feel committed to the long-term prosperity of theenterprise and often do not distinguish between their professional and familylife Thus a better matching between tourism demand and SMTEsrsquo supply isachieved
A close-up of the weaknesses of Greek tourism and SMTEs is critical for under-standing the ability of the industry to compete in the global tourism arenaAlthough entrepreneurs are normally an asset it seems that a number of manage-
452 Current Issues in Tourism
Table 5 Greek tourism and SMTEsrsquo SWOT analysis
Strengths
Flexibility
Tailor-made product delivery
Entrepreneurial activity
Family involvement
Natural and cultural resources
Strong local character
Personalised relationships
Labour loyalty and low turnover
Weaknesses
Management
Marketing
Information technologies illiteracy
Dependence upon tour operators
Supporting markets
Lack of economies of scale
Human resources management
Education and training
Transportation and accessibility
Financial management and resources
Seasonality
Lack of standardisation
Lack of quality assurances
Opportunities
European Union support
European redistribution of labour
Increase in tourism demand size
Trends in tourism demand
Low cost of living in periphery
Information technology
Infrastructure development
Transportation
Olympic Games
Threats
Environmental degradation
Concentration and globalisation
Oversupply
Lack of visibility in CRSs
Infrastructure
Warsterrorism
Political intervention
Source Adapted from Buhalis 1991 60c and Cooper and Buhalis 1992 108
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
rial problems often arise Lack of strategic and operational managementknow-how generates inconsistency in the creation and delivery of tourism prod-ucts This has direct implications for consumersrsquo satisfaction and the projectedimage of the industry There is often a complete lack of strategic vision and enter-prises are often treated as an extension of proprietorsrsquo domestic environmentEntrepreneurs recruit family members and relatives as personnel and supplierseven though more appropriatequalified alternatives can be found in the market-place Therefore the management of SMTEs clearly projects the proprietorrsquosfamily life-style and decision-making processes onto an enterprise Marketing isanother significant weakness for most entrepreneurs and Greek resorts as they areoften completely unaware of the techniques available and thus follow a prod-uct-oriented rather than a consumer-orientated approach Consequently uncoor-dinated isolated trouble-shooting marketing activities are occasionallyundertaken rather than a consistent and well-planned marketing campaign Lackof marketing research debilitates knowledge of consumersrsquo needs and makes itdifficult to identify methods for improving services in order to meet consumersrsquoexpectations Inability to finance and execute advertising campaigns and otherpromotional techniques reduces their visibility in their markets These weak-nesses in combination with the fact that many entrepreneurs are unfamiliar withinformation technology (IT) add to the problems of SMTEs in promoting them-selves effectively Consequently both Greek SMTEs and destinations sufferfrom over-dependence on the tourism distribution channels to promote anddistribute their product In particular intermediaries and especially tour opera-tors have enormous power within the channel and are capable of determiningthe Greek tourism product marketing distribution and pricing mixes (Buhalis1995) Hence the marketing campaign and the visibility of Greek tourism to itsmain target markets are often determined by the coverage space photographsand description in tour operatorsrsquo brochures European tour operators alsocontrol accessibility to Mediterranean or long-haul destinations as they ownmost charter airlines which provide direct and inexpensive flights to these desti-nations
As most resorts are located in peripheral areas there is usually little economicdevelopment in the supplying sectors Therefore remote destinations have toimport essential raw and construction materials from elsewhere while SMTEsoften face transportation delivery and purchasing problems and excessivetransportation costs Moreover lack of economies of scale in purchasing rawmaterial low bargaining power and lack of advanced facilities are additionaloperational disadvantages This essentially means that SMTEs have to payhigher prices for products than their larger counterparts Lack of specialisedpersonnel and inadequate training procedures mean that human resourcesmanagement is a major weakness of Greek tourism In most SMTEs personnelhave to cover a wide range of positions a loose job description is usuallyprovided and multi-skilled personnel are required The labour turnover due tothe seasonality of the tourism industry reduces the availability of qualified andexperienced personnel and makes tourism product delivery not only variablebut also unprofessional The small size of operation provides little opportunityfor the division of tasks professional employees and proper training Since noquality standards are introduced service delivery varies according to the occu-
Tourism in Greece Strategic Analysis and Challenges 453
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
pancy service provider and timing Transportation and accessibility to remotedestinations may also be a weakness as most enterprises are located in periph-eral and often inaccessible regions SMTEs tend to feel frustrated because theyare unable to attract consumers simply because they cannot provide conve-nient reliable and affordable transportation The formulation of charter aircarriers by destination areas such as Turkey and Spain as well as the emergingderegulation policies in the European Union may diminish this problem in thenear future Moreover SMTEs face significant financial constraints as on theone hand they are required to invest in fixed assets at the beginning of theiroperations and on the other hand there is a discrimination against them byfinancial institutions since they normally have very few assets Consequentlythey are forced to accept unfavourable financial deals Finally the Greek tour-ism industry and SMTEs suffer from seasonality problems and have to produceadequate income within a limited period every year Lack of diversified invest-ment in other economic activities forces proprietors to work intensively in thepeak months and rest in the off-peak months while their pay-back period isinevitably unfavourable As the tourism industry becomes more professionalembraces quality management and responds to an increasingly discerningcustomer SMTEsrsquo typical lack of business expertise and minimal standardisa-tion may become an increasing liability especially for some target markets(Cooper amp Buhalis 1992 102)
Recent developments in the external environment present numerous opportu-nities for the Greek tourism industry and SMTEs Firstly the European Uniontakes several actions to support small and medium-sized enterprises (EC 1993b72) while it supports infrastructure development of peripheral regions andcontributes significantly to the prosperity of SMTEs The country is going througha major transformation as a result of several public projects supported by theEuropean Commission including the Attico Metro the new Athens Airport thedevelopment of the peripheral motorway Elefsina-Spata and the peripheralmotorway of Immitos The unification of the heritage sites and thepedestrianisation of the Athens city centre aims to develop an open archaeologi-cal park and deal with the traffic and pollution problems The Olympic Games in2004 provide a unique challenge and opportunity for the city and the country torebrand and redevelop itself and demonstrate its unparalleled heritage andcultural resources The Games also provide the resources and funding as well asa lsquodeadlinersquo for several infrastructural projects that were already scheduled butperhaps delayed In addition several projects are anticipated to improve thesuperstructure of the industry through both renovation of existing propertiesand through the development of new hotels and other facilities It is anticipatedthat the regeneration of the city and the country in general will provide majoropportunities for the attractiveness and competitiveness of the tourism industry(Buhalis 2000b Papanikos 1999 Romanos 1998)
It is anticipated that there will be a gradual redistribution of Europeanlabour providing support for each region to specialise in the production ofgoods and services where it can achieve competitive advantages Traditionallyremote and insular destinations where most Greek resorts and SMTEs arebased achieve a competitive advantage in tourism and therefore greatersupport is anticipated Greek tourism benefits from the continuous growth of
454 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
global tourism demand as more people require holiday services while SMTEsare expected to increase their share as they tend to satisfy the emerging special-ised and sophisticated demand better than larger organisations Informationand telecommunication technologies can provide strategic tools for tourismdestinations and SMTEs enabling them to manage their product more effi-ciently disseminate information and establish a distribution mechanismthrough destination management systems (Buhalis 1994) New technologiesalso offer opportunities for developing innovative tourism products such asteleworking for tourists who would like to spend time working during theirstay at the destination Finally Greek tourism tends to achieve a cost advan-tage since it employs unpaid family members and operates in inexpensiveperipheral regions which often have a lower cost of living in comparison withmetropolitan areas
In terms of external threats environmental degradation through inappropriatewaste management and excessive usage of natural resources can be observedLack of know-how and funds effectively increases environmental problemsConsequently several resorts suffer severe damage while entrepreneurs and localauthorities feel powerless to take remedial measures Moreover oversupply oftourism service providers and lack of well-defined carrying capacity limits inseveral destinations have placed numerous Greek resorts and SMTEs in a disad-vantaged position as they cannot achieve sufficient income Similarly the concen-tration of power in fewer tourism industry enterprises through emergingglobalisation also threatens the ability of Greek SMTEs to survive as internationalvertically integrated tourism organisations acquire control over local enterprisesThe dependence upon channel partners for the promotion and distribution ofGreek tourism is exaggerated by the relatively low presence of Greek suppliers inthe major CRSs (Computer Reservation Systems) which is caused by the seasonal-ity and scale of the tourism production on the one hand and the tariffs of thesesystems on the other The issue of infrastructure is closely related to the oversup-ply which attracts higher demand than planned Destinations often have limitedinfrastructure provisions which fail to follow the pace of development generatingpressure on the existing inadequate facilities Finally the tourism industry suffersfrom its geographical proximity to the Balkans and the Middle East and as a conse-quence is often associated by consumers with wars and terrorism activities Greektourism and SMTEs have limited means of dealing with unfavourable situationsand thus are more vulnerable to their impacts Political intervention perhapsthrough the public sector decisions and the legislator framework often damagesthe prosperity of SMTEs As SMTEs have little lobbying power they have limitedinfluence over political decisions which determine their welfare
The SWOT analysis demonstrates quite clearly that the Greek tourism indus-try faces a wide range of problems and threats which will jeopardise its ability toprovide suitable tourism products in the future as well as its ability to make acontribution to the national welfare However several opportunities and chal-lenges emerge and they need to be addressed in order to strengthen the competi-tiveness of the industry Further analysis is therefore required in order to assessthe factors which generate these problems and also to identify ways to respond tothe challenges they present
Tourism in Greece Strategic Analysis and Challenges 455
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Why Are We There and What Are the Implications StructuralProblems and Challenges
Despite its popularity and growth over the last 40 years the Greek tourismindustry has reached a stage where both its potential and competitiveness havebecome questionable
The seemingly unstoppable growth of this market contributed to a degreeof complacency which has led to Greece repeating some of the errors madein Spain Rapid price increases mean the country is no longer perceived bymass market clients as cheap in relation to comparable destinations in theMediterranean but much of the countryrsquos tourism infrastructure hastilybuilt in response to demand for cheap accommodation does not meet theneeds of a market less sensitive to price and more concerned with qualityand value for money (EIU 1990 45)
Richter-Papaconstantinou (1992 27) explains that tourism development inRhodes lsquotakes place without any Master Plan of the area respect of the landscapeand environment analysis whether there is demand and what the demand isafter regard to what is happening in similar situationsrsquo At the micro level theEuropean travel trade and intermediaries warn that the Greek tourism product isno longer competitive (Conway 1996 41 Touloupas 1996 Douvitsas 1994)whilst Chitiris (1991 148ndash150) outlines a range of managerial problems andmistakes in Greek resort hotels which diminish the quality of the tourismservices Hence unless the Greek tourism industry addresses a number of criticalissues immediately its future might be seriously jeopardised resulting in apotential catastrophe of the national economy The major structural problemsand challenges for the Greek tourism product can be summarised in Table 6
As a result Greece fails to attract the desired lsquohigh-quality high-expenditurersquotourists as it is increasingly unable to satisfy their requirements (Conway 199641) The deterioration of the tourism product and image leads to a lower willing-ness-to-pay by consumers which consequently leads to a further drop in qualityas the industry attempts to attract customers with lower prices This is a viciousspiral which has been destroying the essence of developing tourism in severalMediterranean destinations The concentration of bargaining power in Euro-pean distribution intermediaries and tour operators in particular in combina-tion with the inability of the Greek tourism industry to promote itself andestablish effective distribution mechanisms inevitably minimises the profitmargins of SMTEs and their ability to yield decent returns on their investmentAs a result touristsrsquo expenditure per capita in Greece gradually deteriorateswhile their volume increases (SETE 1993 35)
Thus the tourism policy often consisted in a lsquofreezingrsquo of the selling price ofthe tourist package abroad a measure which combined with the devalua-tion of the drachma and its continuous parity losses succeeded in securing alsquofictitious competitivenessrsquo for the Greek package This competitivenesshowever was seriously threatened each time there was an attempt at asubstantial increase because of important rises in cost elements(Kalogeropoulou 1993 2)
456 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
The above issues illustrate that the Greek tourism product becomes increas-ingly incompetent Hence the inadequate lsquoproductrsquo lsquopromotionrsquo and lsquoplacersquo(distribution) elements of the tourism marketing mix reduce the willingness ofprospective consumers to pay and has disastrous implications for the pricingpolicies deteriorating the profitability of the SMTEs and the tourism economicimpacts on the destination
Ultimately the economic impacts of tourism in Greece become debatableespecially due to the inadequacy of tourism economic research and data whilethe destination has to bear the environmental social and cultural decay Encour-agingly articles in recent tourism industry publications acknowledge these chal-lenges and appreciate the dangers urging both the private and public sector totake action (Touristiki Agora Tourismos ke Oikonomia Travel News XENIA) as well
Tourism in Greece Strategic Analysis and Challenges 457
Table 6 Structural problems and challenges
Image of Greece as cheap simple unsophisticated undifferentiated sun-seadestination
Gradual deterioration of tourism product and lack of reinvestment in improvements
Increase of tourism arrivals but decrease of tourism expenditure per capita
Inadequacy of the Greek planning process
Dependence upon major tour operators for promotion and distribution
Plethora of anarchically developed and behaving SMTEs aiming at short-termprofitability
Inappropriate and ill-timed marketing campaign which has little effectiveness
Inadequacy of infrastructure to serve the ever-expanding demand
Lack of coordination at the destination and disrespect for touristsrsquo needs
Lack ofprofessionalism and training in both state andprivate tourism establishments
Individualistic behaviour by SMTEs and unwillingness to cooperate on adestination basis
Unsuccessful and inconsistent programmes of government intervention
Almost unregulated environment with nearly complete lack of control
Political intervention which allows exception policies and employment of unquali-fied staff
Development of tourism as a single regional development option
Oversupply of tourism amenities and fierce price competition
Failure of the private sector to invest in long-term projects
Deterioration of natural social and cultural resources
SMTEsrsquo inability to resist in global concentration of the tourism industry
Inadequate distribution mechanisms which generate overdependence onintermediaries
Failure of both the private and public sectors to learn from internationally gainedexperience in tourism development and marketing
Lack of tourism research to identify the impacts of tourism
Negligence with regard to new tourism demand challenges
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
as several influential members of the tourism industry (Josephides 1993 19941995 Skoulas 1994 Daskalantonakis 1994 Divanis 1994b Plevris 1995Papandropoulos 1995)
Political intervention limited research lack of tourism policy andplanning
Perhaps the largest obstacle in developing a competitive tourism industry inGreece has been the inconsistent and irrational political intervention Unfortunatelytourism has extensively been utilised as a political vehicle where each govern-ment uses it to gratify its political needs and friends This can be experienced in alllevels of recruitment in the public sector institutions as a change of government oreven minister results in immense changes throughout the GNTO as well as tomajor policies and regulations Thus in the last 35 years (since 1966) the leadershipof the GNTO has changed 28 times allowing each General Secretary to stay inoffice for an average of 138 months Political allies of each government use politi-cal pressure and intensive lobbying in order to achieve amendments in regula-tions incentive policies and business environment Hence the short-termprofitability and commercial interests of the friends and political allies of eachgovernment often overrule the long-term strategy and set an improper examplefor the entire industry These practices result in a great inconsistency in Greek tour-ism policy and disrupt its rationalisation Therefore a lsquodepolitisation of Greektourismrsquo towards a professionally managed public sector guided through acompromised strategic Master Plan is urgently required (Josephides 1995)
The limited existing scientific tourism research highlights the lack of comprehen-sive examination of tourism impacts in Greece while it illustrates that tourismpolicy is based on insufficient documentation (Zacharatos 1989 278 and 1988 22)Public sector research is almost non-existant while the authorities seem uninter-ested in consulting the Greek-tourism research produced by academics (for exam-ple Zacharatos 1984 1986 Komilis 1987 Loukissas 1977 Papadimitris 1988Papadopoulos 1985 Moore 1992 Tsartas 1989 Velissariou 1991 Fotis 1992Buhalis 1991 1995 2000c Buhalis amp Diamantis 2000) or the international tourismlsquobody of knowledgersquo (Zacharatos 1988 24) In addition tourism consumptionbeing characterised as a particular category of private consumption in the nationalaccounts it fails to reflect the real tourism impact on each economic sector Thusthe process of collecting information for tourism expenditure in Greece preventsthe assessment of tourism expenditure impacts on the national and regional econ-omy and therefore cannot be used in drawing scientifically founded tourismpolicy (Zacharatos 1989 277 Konsolas amp Zacharatos 1993 58) Consequentlytourism policy follows conventional wisdom and concentrates on attracting alarger volume of tourists ignoring scientific methods to assess the economicsocial cultural and environmental impacts of each tourism segment assumingthat the greater the tourism volume the better for the national economy
The lack of a comprehensive and rational tourism policy and planning or a MasterPlan for Greek tourism is primarily responsible for the aforementioned structuralproblems Policy is usually based on unsubstantiated statements published by theTourism Ministry or the GNTO (GNTO 1985b 1989a 1993) often as pre-electionpromotional material In essence Greek authorities attempt to intervene aiming tostimulate arrivals as well as to facilitate the operation and development of the
458 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
tourism industry Based on the assumption that tourism arrivals to Greece wouldincrease indefinitely the general directions of the Greek tourism policy focusalmost invariably on the targets summarised in Table 7 (Euromonitor 1992 61GNTO 1989b 41 and 1993 1 OECD 1992 70 Skoulas 1985 194 Leontidou 199188ndash91 Apostolopoulos 1990 Zacharatos 1989 275 and 1988 21)
However as these tasks are not quantified and there is no time schedule orplanning process for their achievement it is inevitable that their implementationand assessment is subject to irrationalities and personal judgement Occa-sionally incentives for tourism development responses to lobbying from tour-ism-related associations and regions training programmes and generallegislation attempt to direct the Greek tourism industry towards the describedpolicy directions In addition an inconsistent and untargeted promotionalcampaign is implemented yearly (Touloupas 1996 130) The campaign attempts toachieve the above unspecified policy tasks while it is often a lsquolast minutersquo reactionmeasure to a forecasted decline of bookings for the current season rather than acoordinated long-term marketing policy (Jenner amp Smith 1993 143Papadopoulos 1989 304) Despite the advertising campaignrsquos positive impact onarrivals the feedback to the campaign is rather speculative as no formal researchis undertaken to identify the most cost-effective media and communication meth-ods for each target market (Papadopoulos 1989 311 and 1987 82)
Because the deficient scientific examination of Greek tourism and its impactsprevents the authorities from establishing quantifiable and measurable tourismpolicies their policies are based on subjective and personal judgements while feedbackpractices are rarely followed In addition the implementation of the vaguelydefined tourism policy as well as the targets regulations and standards are oftenbent to accommodate lobbying and political pressures (Zacharatos 1989 279)Komilis (1993 225) suggests that tourism planning in Greece is generally realisedand exercised within a socio-political environment characterised by severalfactors a limited degree of political commitment lack of social awareness andacceptability of planning actions inadequacy of scientific and technical founda-
Tourism in Greece Strategic Analysis and Challenges 459
Table 7 Greek tourism policy targets
Development of demand
Training of tourism employees
Increase arrivals and foreign exchange income
Increase competitiveness of tourism product
Improvement of services in the industry
Reduction of seasonality and expansion of tourism season
Attraction of high spenders and alternative types of tourism
Construction of facilities appealing to the upper end of the market such as luxuryhotels golf courses congress centres casinos and marinas
Development of tourism infrastructure with emphasis on transportation
Support of social tourism for low-income domestic tourists
Geographical redistribution of tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
tion to support planning intervention and a centralised administrative-institu-tional system gathering a plethora of functions but failing to perform itscoordination and enforcing role When the conflicting interests and power of eachmember of the tourism industry are brought into the equation where differentpartners attempt to influence legislation in order to maximise their own short-termprofitability regardless of the impacts on the destination and other enterprises theplanning process becomes more complicated This results in an ineffective plan-ning system and process which produces policies unable to provide an appropri-ate balance between restrictive policies and control planning implementationMoreover the plethora of SMTEs in combination with inadequate legislationconcerning their establishment and operation seem to affect adversely thecompetitiveness of the industry and the ability to diversify and enrich local tour-ism products (Komilis 1992 11 EIU 1990 59)
Consequently several structural problems are originated jeopardising theprosperity of both SMTEs and destinations especially in overdeveloped regionsOn the supply side failure of the infrastructure to follow the dramatic expansionof the superstructure in combination with the lack of solid institutional context oftourism policy and long-term regulation result in the exploitation and inadequacyof environmental and socio-cultural resources as well as the inability of the indus-try to generate the level of economic benefits desired and expected On the tourismdemand side after the meteoric growth in the 1970s and 1980s the Greek tourismindustry has been trying to transform lsquothe country into a destination which cancompete not just on price but on value for moneyrsquo (EIU 1990 45) It is becomingapparent that the tourism population in not infinite and an adaptability andresponsiveness to touristsrsquo needs is ofgreat importance (Sezeramp Harrison 1994 83)
Structural problems jeopardise the profitability of the private sectorBecause of the aforementioned structural problems most tourism industry
enterprises are experiencing a decline in profitability Hotels in particular arebadly affected due to the high fixed assets as well as their immobility and inflexi-bility which prevents them from adjusting to demand fluctuation Several reasonsdetermine their low profitability and inability to increase prices in line with infla-tion The low occupancy levels achieved yearly is a key problem Smith and Jenner(1995 17) estimate that the lsquoyear-round bed occupancy over the range of licensedaccommodation is slightly under 30rsquo As most of the properties are closed duringthe winter months due to the seasonality problems they rely on three to six monthsto generate sufficient returns on their investment The occupancy levels of accom-modation establishments in Greek tourism are often determined by theirco-operation with travel intermediaries Based on the different seasonality patternsof different markets rooms are normally allocated a year before the summer seasonto tour operators on lsquoallotmentrsquo or lsquocommitmentrsquo contracts which effectively deter-mine the prices charged according to the security provided by tour operators forusing and paying for hoteliersrsquo rooms Once the contracts are signed hoteliers effec-tively lose their control on their inventory and their right to market their rooms toother business sources before the release period (typically 7ndash14 days before arrival)in order to avoid overbooking However should their bookings fail to match theirprogramme tour operators often utilise their buying power to cancel unwantedrooms at the beginning of the tourist season without paying compensation Smaller
460 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
hoteliers are often left with unoccupied rooms they which are unable to promote atthe lsquolast minutersquo unless they drop their prices to unacceptable levels As a result oftheir deficient intra-channel power hotels often suffer a significant cut-back of theiroccupancy levels which has direct implications for their profitability (Buhalis 19952000c 460 Ktenas 1996)
Similarly the seasonality of the Mediterranean and Greek tourism industry hasalways been a problem for the profitability of SMTEs since enterprises operateonly for a limited period (Jenner amp Smith 1993 70 Drakatos 1987 Donatos ampZairis 1991) Attempts to promote winter tourism by developing cultural andspecial interest tourism in the islands and winter sports in several ski resorts inGreece have proved fairly unsuccessful (EIU 1986 56) This is attributed to theimage of Greece as an exclusively summer-sun destination as well as to the unco-ordinated attempts to maintain tourism enterprises active during the wintermonths (EIU 1990 57)
The average room rate is the second major determinant of hotel profitability It isbecoming apparent that employment costs and cost of capital in combination witha relatively strong currency policy reduce the ability of Greek accommodationestablishments to offer competitive pricing and maintain their profitabilityMarketing inadequacies and inability to promote the tourism product as a differ-entiated entity the rapid increase of supply in comparison to demand and theoverall dependence upon the oligopsonistic tour operators for the Greek tourismproduct promotion force hoteliers to accept contracts by tour operators whichminimise their profit margin and adversely effect the quality of their productIncreasing levels of pressure by tour operators prevent SMTEs from renovatingand investing in their properties and therefore a gradual deterioration of the prop-erties is inevitable (Richter-Papaconstantinou 1992 14 Skoulas 1985 189) Euro-pean tour operators faced with fierce competition in their markets are essentiallywilling to pay an annual price increase equal to little less than the depreciation ofthe drachma plus the inflation at the place of origin of the tourists (Ktenas 1994)This policy progressively deteriorates the profitability of the Greek tourism indus-try and has severe impacts for its prosperity The situation is worse for smalleraccommodation establishments which manage to negotiate even smaller priceincreases due to their exclusive dependence upon fewer intermediaries(Logothetis 1992 14)
The oversupply of tourism services both in Greece and worldwide also contributesto global competition for a less rapidly increasing demand (Josephides 1993 54)In Greece the average annual increase of the official hotel bed supply in 1983ndash1992was 47 while the annual average increase in international tourist bednights was27 (Epilogi 1994 271) The investment incentive Law 126282 boosted this over-supply as it generated small infeasible and uncontrollable accommodation unitsunable to offer high quality of services while it increased the concentration of tour-ism units in infrastructure-undersupplied resorts (Kriebardis amp Marmagiolis1990 51 Stavrou 1989b 5) The vast majority of the capacity growth is on the lsquoille-galrsquo unregistered self-catering and self-serviced lsquoparahoteleriarsquo sector whichprovide very low quality and priced accommodation and therefore appeal tomass tour operatorsrsquo clientele This not only increases unfair competition for theofficially registered hotels but also reduces both tax revenues and employment atthe macro level
Tourism in Greece Strategic Analysis and Challenges 461
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Horwath (1994 3) concludes that
unfortunately the results in terms of return on investment in the tourismindustry are not very promising especially when compared with those ofother Greek economic sectors It is an undisputable fact that the averageGreek tourism entrepreneur is heavily dependent on the tourist packageprice which is strongly negotiated by the international tour operators It isan lsquounhealthyrsquo dependency as a result of the weak position of the Greektourist product in the international market In addition the aforemen-tioned dependency is the result of the lack of marketing activities in anaverage tourist enterprise As we all know effective marketing activitiesare based on the product place price promotion which all contribute toclient satisfaction and further to a bigger share in the international touristmarket Up to now three of the aforementioned important elements ofmarketing have been overlooked which determine the weak negotiationpower of the Greek entrepreneur
This situation has also resulted to several European companies expandingtheir operations into Greece or purchasing shares in Greek partners in order toimprove their vertical integration Should this vertical integration expand signif-icantly however lsquoGreek tourism will be in fact controlled by foreign deci-sion-making centres which will certainly operate on the basis of their owninterests and not according to the overall interests of our national economyrsquo(Kalogeropoulou 1993 2) Hence radical measures are required immediately inproduct formulation promotion strategy and distribution channels to supportboth Greek destinations and SMTEs to enhance their competitiveness profitabil-ity and prosperity Failure to react would have severe implications for the futureof the Greek tourism private sector as the essence of its existence would be jeop-ardised its costs may exceeding its returns
Structural problems generate negative tourism impactsIn addition to the profitability problems of the private sector the aforemen-
tioned structural problems have profound implications for the welfare of hostpopulations in various Greek destinations as their economic social cultural andenvironmental resources are exploited without ensuring their sustainabilityLack of comprehensive research and failure to initiate carrying-capacity limits orzoning systems contribute to the anarchic development of tourism as well asexpand negative impacts of tourism on local societies and environments Thefollowing section highlights some of the costs Greek destinations are called topay for their tourism activity whilst it suggests that these issues should beaddressed in the strategic planning process
Macro-economic negative impactsDespite the contribution of tourism to the Greek economy certain potential
risks can also be identified Not only is the competitiveness and profitability ofthe tourism industry jeopardised but also several destination regions seem tofollow a policy of developing tourism at the expense of industrial and agricul-tural growth (Stavrou 1989a 6 Vernicos 1987 105) Instead of tourism stimulat-ing agriculture it seems that it hastens its decline as the two economic activities
462 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
compete for land and labour The lack of structural investments in industrial oragricultural sectors combined with the popularity of tourism professions in theworkforce endanger the balance of the regional economy while reducing thetourism multipliers (Briassoulis 1993 295) As a result the economic structure ofthe destination is jeopardised while a complete dependence upon tourismbecomes inevitable (Komilis 1992 7) Both opportunity costs and displacementeffects are therefore evident Moreover there is evidence that the progress ofdestinations through their life-cycle and especially the introduction of masstourism decreases their economic impacts while it makes local control of theindustry far more difficult (Loukissas 1982 537) lsquoBecause of the high degree ofdependence of Greek tourist enterprises on tour operators the actual amount oftourist spending remaining in the country is only the 40ndash50 of total touristspendingrsquo (Briassoulis 1993 296) Public-sector subsidies to the private sector invarious forms such as incentives cooperative marketing campaigns and unem-ployment benefits in the off-season as well as tax evasion and lsquoparaeconomyrsquo alsoreduce the real benefit at the macro level (Mourdoukoutas 1988 Drakatos 1987Leontidou 1991 102) Lack of scientific research on the economic impacts oftourism makes the real contribution of tourism in the economy speculativerather than based on hard evidence (Zacharatos 1988 1989 Konsolas ampZacharatos 1993)
Social and cultural negative impactsThe development of mass tourism and the lack of effective planning and
management are also responsible for a number of negative social and culturalimpacts observed in Greek host societies (Tsartas 1989 1992 Stavrou 19781979 1980 1986b) Although the degree of interaction of the population withtourists depends heavily on the geomorphology of destinations and the loca-tion of resorts (Loukissas 1982 538) touristsrsquo behaviour is often offensive tothe host population but tolerated due to the economic benefits (Castelberg-Koulma 1991 201 Kousis 1989 Wickens 1994 823) Most Greek tourismdestinations are almost crime-free zones during the winter due to the smallpopulation and personal relationships of locals Tourism however introducesseveral types of criminal activity often unknown to local people As policeforces are usually allocated according to needs of the permanent population ina destination they are often incapable of handling the demands of the summermonths and are unable to deal with visitorsrsquo misbehaviour such as hooliganismand lsquolager-lootingrsquo
The commercialisation of history cultural traditions and the Greek lifestyle isa phenomenon met in several destinations This regrettably affects the renownedGreek hospitality commercialises human relations with tourists and reduces theties of solidarity and cooperation between locals since they compete for the tour-ism market (Papadopoulos 1988b 24) As the average employee works 605hours weekly for 295 weeks a year there is little time left for social religious andcultural obligations during the season (Mourdoukoutas 1988 325) Although acertain degree of lsquodemonstration effectrsquo and lsquoxenomaniarsquo can be attributed totourism the country is equally influenced by the mass media as well as by theGreek students and professionals living abroad (Papadopoulos 1988a 30Wickens 1994 822) Moore (1995) also explains that tourism not only has had a
Tourism in Greece Strategic Analysis and Challenges 463
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
contribution to the increase of alcohol consumption by Greeks but has alsoshifted their taste away from locally produced wine to imported spirits and beerBriassoulis (1993 296) perhaps describes best the change in labour force valueswhen as she suggests that tourism has created a
peculiar parasitic group of tourist entrepreneurs operating tourist-servingenterprises like tavernas cafeterias etc the principal characteristics ofwhich are high profits and tax evasion Consequently a particular person-ality type is created the lsquosuccessfulrsquo entrepreneur who earns a lot with littlework has a rich erotic life and is professionally independent (in contrast topublic and private employees) This model is followed by many youngpeople who abandon other productive year-round occupations lsquoworkrsquoonly during the tourist season stay idle for the rest of the year and eventu-ally suffer from the volatility of the tourist market
The family relations and values are therefore under great transition andperhaps threat (Castelberg-Koulma 1991 201 Kousis 1989 Moore 1992)
Negative environmental impactsDespite environmental resources becoming central to destinationsrsquo competi-
tiveness most Greek destinations go through an unparalleled exploitation due toinadequate planning and reinvestment in their sustainability jeopardising theirfuture (Buhalis amp Fletcher 1995) Boniface and Cooper (1994 141) suggest thatgeographical concentration of tourism
has led to the view that Greece will become saturated with tourists and thatdamage will be done to the environment and cultural heritage in the morepopular areas Already the environment has suffered from haphazarduncontrolled building and pollution of the sea and the flora and fauna arebeing effected by waste disposal
Coastal pollution water shortages sewage treatment waste disposal trafficcongestion noise pollution overbuilding and aesthetic degradation are some ofthe impacts experienced already in a number of resorts (Briassoulis 1993 297Coccosis amp Parprairis 1992 Peterson 1990 Marinos 1983 Stavrou 1988 19 and1989a 5 Papadopoulos 1988b 24) Most of the islands also face water shortagedue to the inability of natural supplies to provide sufficient water for the tourismdemand Imported mineral water from the mainland is an expensive way tosolve this problem due to the transportation cost while it creates more waste andenvironmental damage In addition the destruction of endangered speciesrsquo habi-tats is another problem experienced on several islands (ZakynthosCaretta-Caretta and Allonissos monk-seals) (Ottaway 1992 Van Den Bergh1993 70 Prurier et al 1993) Urgent coordination with all tourism actors at thelocal level is essential while regulation is required to set objective and measurablelimits and targets in order to preserve local environmental resources Financialdifficulties in the industry only exacerbate these impacts as the private and publicsectors feel unable to reinvest in the conservation of resources
The aforementioned negative impacts emerge as a result of the structuralproblems of the Greek tourism industry and illustrate that the mass tourismorientation of the industry reduces the sovereignty of the host population over
464 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
their land and resources whilst jeopardising their expected benefits and futurewelfare As these impacts are trade-offs for the economic gains of the tourismactivity it is important that consistent long-term strategic planning should beundertaken in order to enable the preservation of the local resources and achievesustainability at tourism destinations These tasks should all be reinforced byresearch political will and strategic planning
Where Do We Need to Go and How Are We Going ThereTowards Strengthening the Competitiveness of Greek Tourismand SMTEs
Based on the situation analysis as well as on the strategic weaknesses andstructural problems the paper attempts to provide a framework for strategicplanning which will enable the strengthening of the competitiveness of Greektourism and SMTEs Porter (1985 1) suggests that competitive strategy lsquois thesearch for a favourable competitive position in an industryrsquo which is a function ofthe attractiveness of the industry and the relative competitive position withinthat particular industry He also argues that lsquocompetitive strategy aims to estab-lish a profitable and sustainable position against the forces that determine indus-try competitionrsquo Competitiveness is therefore defined as the effort undertakenby organisations to maintain long-term profitability above the average of theparticular industry within which they operate or above alternative investmentopportunities in other industries
Traditionally the tourism industry in the majority of destinations worldwideis based on a network of SMTEs which provide all types of tourism products andservices while enabling closer interaction between the host population and visi-tors as well as facilitating a rapid infusion of tourism spending into the localeconomy As lsquotouristsrsquo overall experience is composed of numerous smallencounters with a variety of tourism service providersrsquo (Moutinho 1990 104)there is a great overlap between the customer perception of local SMTEs anddestinations which makes them almost indistinguishable Consequently thecompetitiveness and prosperity of destinations and SMTEs are closely interre-lated as the fortune of the one depends heavily upon the management andcompetitiveness of the other Therefore the generic strategy for destinationsinvolves SMTEs and vice versa
Grand strategy Strategy formulation for Greek tourism and SMTEsBased on the strategic analysis a grand strategy is proposed for the Greek
tourism industry and SMTEs in order to demonstrate the directions the destina-tions should follow in their attempt to increase their competitiveness and reducetheir vulnerability As different resorts destinations and SMTEs have dissimilarneeds only generic strategies can be drawn However these guidelines can beapplicable to destinations and SMTEs worldwide as they address strategic ratherthan operational issues The analysis is based on the assumption that SMTEsformulate leisure value-added chains or networks of wealth creation whichessentially comprise the entire destination Therefore an integrated approach isfollowed as there is a great complementarity between the strategies and strate-gic directions for both the Greek tourism industry and SMTEs
Tourism in Greece Strategic Analysis and Challenges 465
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
The grand strategy analysis is based on an examination of three general strat-egy models namely Porterrsquos generic strategies Gilbertrsquos proposition for lsquodiffer-entiation of the destinationrsquo and Poonrsquos analysis for lsquoflexible specialisationrsquo Agrand strategy is then proposed for both Greek tourism and SMTEs based oninference emerging from these three models Figure 1 illustrates the three maingeneric strategies proposed by Porter (1980 34ndash46) in order to lsquooutperform otherfirms in an industryrsquo overall cost leadership where the firm is required to minimiseits costs based on mass production and strict cost control of the main businessfunctions differentiation of products or services by lsquocreating something that isperceived industry-wide as being uniquersquo or focus on a lsquoparticular buyer groupsegment of the product line or geographical marketrsquo and achieve either cost leader-ship or product differentiation (Porter 1980 37ndash8)
Furthermore Gilbert (1984 1990) argues that destinations should differenti-ate their tourism products in order to be able to achieve a unique lsquotourist productbenefitrsquo which would enable them to establish their position in the internationaltourism market as well as to attract high spenders and loyal tourists Tourismdestinations therefore should attempt to achieve a lsquostatus arearsquo image ratherthan a lsquocommodity arearsquo one as illustrated in Figure 2 In the first case the desti-nation is heavily substitutable very sensitive to price and economic changeswhile consumers have a low awareness of any unique benefits or attributes of theregion Thus holidaymakers base their decision to visit the area merely on pricewhile the demand for the destination is incidental and destinations are unable toattract high spenders In contrast lsquostatus areasrsquo achieve intentional demand as aresult of the unique product attributes perceived by the tourism market Theseunique attributes may be genuine or imagined and thus a destination isregarded as irreplaceable increasing consumersrsquo loyalty and willingness to payGilbert (1990 24ndash5) asserts that destinations should attempt to become lsquostatusareasrsquo in order to improve their image loyalty and economic benefits
A third strategic approach is proposed by Poon (1987 1988 1989 1990 1993)based on the concept of lsquoflexible specialisationrsquo of the tourism business Inessence Poon examines the industry processes and proposes a strategy to enabletourism organisations to improve their competitiveness Poon argues that lsquoflexi-ble specialisationrsquo is a strategy of lsquopermanent innovationrsquo and lsquoceaseless changersquowhich provides for the lsquonew tourismrsquo This new tourism is flexible segmentedcustomised to the touristrsquos needs and diagonally integrated In contrast the oldtourism can be characterised as lsquomass standardised and rigidly packagedrsquo(Poon 1989 91ndash3)
466 Current Issues in Tourism
STRATEGIC ADVANTAGE
Perceived product uniqueness Cost advantage
TARGETMARKET
Industrywide Differentiation Cost Leadership
Particularsegmentsonly
Differentiation Focus Cost Focus
Figure 1 Porterrsquos three generic strategiesSource Porter 1980 39
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
The main sources of flexibility for service firms lie in the organisationmanagement marketing distribution and other forms of interaction andinterrelationships among guests hotels suppliers distributors What isimportant however is not each of these stand alone aspects but how theyare coupled to create competitive advantages and hence capabilities tomove with the market (Poon 1988 24)
Examination of these three main strategies illustrates that they share a similarbase Porterrsquos lsquodifferentiationrsquo Gilbertrsquos lsquostatus arearsquo and Poonrsquos lsquoflexiblespecialisationrsquo describe the attempt undertaken by firms and tourist destinationsto achieve value competitive advantages In contrast the lsquocost leadershiprsquo lsquocom-modity arearsquo and the lsquostandardisation or Fordism production modelrsquo describethe effort to achieve lsquocost competitive advantagersquo where destinations andSMTEs offer their products for less than their competitors In the first caseconsumers perceive the product as unique and are willing to pay a premiumwhile in the second case the decision is merely based on price Thus the classicalstrategic decision of lsquolow volume-high profit marginrsquo or lsquohigh volume-low profitmarginrsquo is the underlying concept of the two alternative strategies
Both Gilbert and Poon agree that destinations should aim to achieve lsquostatusarearsquo or niche orientation through differentiation in order to increase consumersatisfaction as well as to maximise the benefits for both regions and SMTEs As aresult Greek tourism and SMTEs need to focus towards the differentiation strat-egy define their niche markets and serve them accordingly This strategy isalready adopted in several resort areas such as Valencia in Spain where it isrecognised that the need for diversification and differentiation lsquohas now becomeessential owing to the level of competitiveness that has been attained (and can beforeseen) in the world tourist marketrsquo (Fayos-Sola 1992 49) Differentiation isalso particularly useful for insular destinations in microstates where a limitednumber of economic and financial resources are available (Wilkinson 1989 170)As most destinations consist of SMTEs networks there is an overlap betweentheir strategic orientations and therefore the above analysis is applicable to boththe Greek tourism industry and SMTEs
Destinations implementing a lsquostatus arearsquo strategy can enhance the satisfac-tion of tourists as well as their competitiveness The formulation of unique and
Tourism in Greece Strategic Analysis and Challenges 467
CommodityArea
Statusarea
Willingness topay higher prices
StatusArea
Product attributes Product attributes
CommodityArea
Figure 2 Gilbertrsquos differentiation strategySource Adapted from Gilbert 1990 25
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
customised products by using flexibility and cooperation also increases touristsrsquowillingness to pay and wins their loyalty while it responds to the new tourismdemand trends However the proposed strategy should not be seen as an excusefor SMTEs and destinations not to attempt to improve their efficiency and mini-mise their production costs Although the unique service for touristsrsquo needs shouldbe their priority offering perceived value for money would determine theircompetitiveness in the marketplace As a result all Greek resorts and SMTEsshould assess their assets and strengths for serving specific target markets takingadvantage of their small size which facilitates flexibility and specialisation
It is quite apparent that the cost advantage strategy has to be avoided inmanagement of tourism destinations as regions need to preserve their scarceenvironmental and sociocultural resources and achieve sustainable develop-ment As cost advantage is based on mass production and consumption itassumes an unlimited production capacity which is inapplicable in the tourismindustry The inseparability of the tourism product determines that consumersshould be present at the time of product delivery and when combined with tour-ism seasonality it generates demand peaks which drain destinationsrsquo scarceenvironmental sociocultural resources The lsquohigh volume-low profit marginrsquostrategy has therefore harmful social and environmental impacts on destina-tions Destinations have maximum carrying capacities beyond which both thewelfare of local populations and the satisfaction of tourists are jeopardisedAlthough economic benefits can also be achieved by using the lsquocommodity arearsquoor the lsquostandard product modelrsquo it is argued that these approaches reduce tour-istsrsquo satisfaction and their willingness to pay and are opposed to the demandtrend towards individualisation
Unfortunately however some destinations can no longer be positioned asirreplaceable unique products due to their overdevelopment Tourism supplyhas exceeded the carrying capacity of these resorts and their product hasreached the saturation or decline phase of their life-cycle Several Spanish costasand some Greek resorts such as Benitses Kavos Faliraki Malia Hersonissos andNidri (Josephides 1994) have been overdeveloped to such an extent that only alsquohigh-volume low-profit marginrsquo strategy is feasible When resorts reach theirsaturation level only a lsquocost leadershiprsquo or lsquomass productionrsquo strategy can beproposed as they are unable to provide any specific lsquotourist product benefitrsquo Theattraction of the lower end of the market is inevitable and as a consequence thereare no alternative strategies The minimisation of further sociocultural and envi-ronmental damage as well as attempts to improve the surrounding environmentshould also be a primary objective of both tourism destinations and SMTEs in thiscase The ultimate aim should be to regenerate the resources of the area and torelaunch the tourism destination to attract specific markets which will be willing topay a higher price for the destination
Strategic directions objectives and tasks for Greek tourism and SMTEsTable 8 presents three pivotal strategic directions which are identified in order
to stimulate the competitiveness of both Greek tourism and SMTEs This sectionillustrates how the aforementioned grand strategy can be implemented for tour-ist destinations and SMTEs through a number of strategic directions objectivesand tasks as presented in Table 9
468 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Enhancing the satisfaction of tourists and delighting the customer are pivotalto ensuring the well-being of Greek destinations and SMTEs in the long term andthus the entire range of tourism service providers should aim to delight theirclients As a result of the tourism product integration consumer satisfactioncannot be achieved by independent businesses separately but by the entirenetwork of SMTEs in Greek destinations The improvement in services isperhaps the most important strategic objective Consistency of promises throughstandardisation of service delivery and implementation of a total qualitymanagement philosophy throughout the industry are essential strategic tasks forachieving this objective while flexibility in service delivery and improvementsin training are critical In line with the grand strategy the production oftailor-made tourism products should be ensured in order to satisfy the specificneeds of particular niches and the requirements of the emerging new tourismdemand Product augmentation would enable also the Greek tourism product toexceed the expectations of consumers and hence enhance their satisfaction Lifestyle segmentation would enable Greek tourism and SMTEs to design appropri-ate tourism products As tourist demand elasticity has increasingly becomedoubtful in recent years the price of the holiday is no longer considered to be themost important attribute in the decision-making process Consequently theGreek tourism industry should concentrate on providing value for money at allprice levels as well as offering at least whatever they have promised to theconsumer
Supporting the long-term competitiveness and profitability of Greek tour-ism and SMTEs is by far the most important strategic objective for the tourismindustry The first strategic objective for every SMTE has to be the increase inrevenue by maximising its occupancy or load factors and the rates it achievesThe lengthening of the operating season as well as the identification of newmarkets and the penetration into existing ones and the effective utilisation ofdistribution channels will contribute to this strategic direction Higher ratescan be achieved by targeting specialised and smaller tour operators attractingalternative types of tourists and expanding the distribution channels mix aswell as by attempting a certain degree of lsquodisintermediationrsquo by encouragingdirect sales to outgoing travel agencies or consumers Aggressive marketingand establishment of partnerships with other enterprises should be essentialfunctions of Greek tourism and SMTEs Motivation of lsquofront-of-housersquo employ-ees as salesmen and sale incentives would also increase average spending percustomer The use of CRSs and destination management systems may also bean appropriate method for achieving higher prices and better occupancy rates(Buhalis 1994) Finally yield management techniques should be utilised by alltypes of SMTEs to assist them in pricing and maximising revenue Cost control
Tourism in Greece Strategic Analysis and Challenges 469
Table 8 Pivotal strategic dimensions for Greek tourism
(1) Enhance the satisfaction of tourists and delight the customer(2) Strengthen the long-term profitability and competitiveness of Greek tourism and
SMTEs(3) Develop Greek destinations sustainably and ensure prosperity of host population
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
470 Current Issues in Tourism
Table 9 Strategic directions objectives and tasks for SMTEs and destinations
Strategic directions Strategic objectives Strategic tasks
1 Enhance the sat-isfaction of tour-ists and delightthe customer
11 Improvement of services a Standardisation of service de-livery
b Development of quality controlsystems
c Consistency of promisesd Improvements in operational
managemente Flexibility in services deliveryf Training and education im-
provementsg Smile and personal relation-
shipsh Augmentation of tourism
producti Total quality management
12 Specialisation of tourismproduct
a Niche marketingb Lifestyle targeting
13 Value for money a Quality at each price level
2 Strengthen thelong-term com-petitiveness andprofitability ofGreek tourismand SMTEs
21 Increase revenue a Increase tourist volumesb Target new markets and pene-
tration in existing marketsc Use yield managementd Expand distribution channel
mixe Aggressive marketingf Achieve high average spending
per customerg Select high-quality specialised
tour operatorsh Attract alternative types of
tourismi Use alternative distribution
channelsj Motivate front-of-house em-
ployees as salesmen
22 Cost control and rationalmanagement
a Standardise service deliveryb Increase productivityc Reduce labour costsd Rationalise supplies manage-
mente Educationtraining for manag-
ers and employeesf Use of new technologyg Integrate service delivery
within SMTEs
23 Human resources man-agement
a Internal marketingb Empowermentc Satisfactory salary and working
conditionsd Long-term relations with em-
ployeese Motivation and rewards
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
and rational management is the second strategic objective needed to increaseefficiency and profitability of both Greek destinations and SMTEs in the longterm Standardisation of the service delivery process and minimisation of thelabour cost through better operational management would be primary recom-mendations Managers and employees should improve their productivity andmarketing skills by intensive training In addition the rationalisation of supplymanagement and the use of new technology is expected to reduce operationalcosts Finally integration of service delivery enables SMTEs to provide comple-mentary services and achieve additional revenues without immense costs
Tourism in Greece Strategic Analysis and Challenges 471
24 State and public tourismorganisation support
a Destination development andcontrol
b Incentives policies for improve-ment
c Attract European Union assis-tance
d Promotional activitye Provide financial resources
3 Develop Greekdestinationssustainably andensure prosper-ity of host popu-lation
31 Environmental protection a Carrying capacity identificationb Zoning system applicationc Architecture preservationd Installation of sewage treat-
ment systemse Reduction of noise pollutionf Natural supplies management
32 Infrastructure ameliora-tion
a Accessibility improvementsb Telecommunication improve-
mentsc Public facilities advancements
33 Transportation improve-ments
a Improvement of local timeta-bles
b Punctuality and reliabilityc Improvements of vehiclesd Flexibility to meet demand
needs
34 Economic integration a Integration with raw materialproduction
b Utilisation of local labour forcec Integration of tourism servicesd Diagonal integration of destina-
tionrsquos economy
35 Equitable return on re-sources utilised
a Establish mechanism forreinvestments
b Provide services for hostcommunity
c Invest in sustainability ofresources
d Ensure equity in distributionof wealth produced
Source Adapted from Buhalis 1991 83a
Table 9 (cont) Strategic directions objectives and tasks for SMTEs and destinations
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
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Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Human resources management is crucial in the delivery process of tourismproducts The concept of lsquointernal marketingrsquo where employees are perceivedand treated as lsquointernal customersrsquo has to be utilised in order to ensure theirsatisfaction As Berry (1981 34) states lsquothe satisfaction of the needs and wants ofthe internal customers can upgrade their capacity for satisfying the needs andwants of their external customersrsquo and as a consequence it can contribute to thecompetitiveness and profitability of Greek tourism and SMTEs Satisfactorysalary and working conditions are prerequisites for the well-being of SMTEsrsquoemployees Long-term relationships between employees and SMTEs minimiseturnover enabling a better performance while they reduce recruitment andtraining costs Empowerment would enable employees to be involved in themanagement of SMTEs and authorise them to respond more efficiently toconsumer requests while contributing to their job satisfaction Finally thesupport of the GNTO is vital for the long-term survival of SMTEs Apart fromthe improvement in infrastructure the GNTO is expected to hold the strategicresponsibility of the destination as well as to regulate the competition in orderto enable smaller enterprises to survive Incentive policies need to reflect thespecific requirements of each resort and enable development or improvementof certain types of enterprises The GNTO is also instrumental in attractingassistance from European development funds while it should also coordinatethe majority of Greek tourism promotional activity A promotional mix whichmaximises the effectiveness of the communication message needs to be drawnwhile budgets need to be available at the time consumers go through their deci-sion-making process in order to influence their choice of destination Finally theneed for the public sector to provide affordable financial resources for SMTEs ishighlighted by the EU (EC 1993b 73)
The third strategic direction for Greek tourism and SMTEs should be thesustainable development of destinations and local areas not only for the hostpopulation but also because this is vital for both consumer satisfaction and theprofitability of SMTEs Although in most cases SMTEs are unable to incorporatethese types of strategic objectives and tasks on their own they can initiate aframework of necessary actions for sustainable destination developmentthrough their associations Environmental protection is naturally the mostimportant strategic objective as consumersrsquo environmental consciousness hasbeen raised recently Carrying capacity limits should be identified and strictregulations and guidelines for tourism development need to be drawn A zoningsystem should be implemented in order to locate tourism activities according tothe geographical morphology of the destination In addition natural resourcesmanagement is necessary as tourism demand may exhaust the resources andespecially the water supplies The installation of sewage treatment systems andthe reduction of noise pollution should be considered especially for resortswhich suffer the consequences of these problems In addition infrastructureamelioration must be one of the primary objectives as it is an essential prerequi-site for both consumersrsquo satisfaction and SMTEsrsquo development The improve-ment of accessibility public services as well as telecommunications facilities is acrucial factor Transportation is also significant in increasing both consumersatisfaction and profitability of SMTEs as it determines whether consumers canaccess the destination easily while it also provides the first impression to tour-
472 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
ists Improvements of timetables and services reliability increasing transporta-tion capacity and an enhancement of the fleet in terms of speed cleanliness andleisure facilities are all required Furthermore greater flexibility is needed bytransportation operators in order to meet demand needs Economic integrationcan improve the economic and social benefits of tourism in the region and theefficiency of SMTEs Ultimately tourism should be utilised as the catalyst andmajor stimulant for regional development Tourism enterprises should makeevery effort to use local raw materials and labour in order to maximise the multi-plier effects within Greece Diagonal integration of destinationsrsquo economy can beachieved by rearranging the goods and service production in order to supportthe tourism industry demand and thus minimise imports Finally SMTEs andtourism organisations need to offer a fair return-on-resources utilised back to thehost community A mechanism should be established in order to reinvest part ofthe revenues in the sustainability of resources provide services for the hostcommunity such as education training health services and generally ensureequity in distribution of wealth produced from local resources As the privatesector cannot be expected to behave altruistically towards the host communitythe GNTO and other public-sector departments should probably utilise regula-tion and taxation for this purpose
Conclusion Greek Tourism Needs a Long Overdue Master Planand Comprehensive Policy
The emerging international tourism competition the hitherto mass tourismorientation of the industry the transformation of demand the development ofthe volume of tourists visiting the dependence upon intermediaries for thedistribution of the tourism product in the major target markets the lack of a widerange of managerial skills by Greek tourism entrepreneurs and the lack of acomprehensive tourism policy or Master Plan by the public sector has led thecompetitiveness of Greece tourism to decline This has several unfavourableimplications for the profitability of the private sector as well as numerous nega-tive economic sociocultural and environmental impacts for the host populationAs a result the return on resources utilised for the production of Greek tourismservices is inadequate and the sustainability of Greece as a major tourism desti-nation is rapidly becoming doubtful Based on a strategic analysis the paper illu-minates the strategic weaknesses and structural problems of both the private andpublic sectors and demonstrates that a rationalisation of the tourism industry isurgently required Consequently a grand strategy as well as a wide range of stra-tegic directions objectives and tasks are proposed for both Greece as an entityand its SMTEs Although no quantitative targets are set in this paper it isexpected that each destination will analyse its resources and adapt its strategicplanning accordingly
The GNTO is urged to rationalise its strategy and to draw up a Master Plan anda comprehensive strategy for the entire country and for each resort where a strategywould be adopted based on quantifiable objectives and tasks Extensive researchneeds to be undertaken by using credible measurement methodologies such asInput-Output models and multipliers analysis not only for the economic but alsofor the social cultural and environmental impacts (Zacharatos 1988 1989 Buhalis
Tourism in Greece Strategic Analysis and Challenges 473
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
amp Fletcher 1995) A holistic tourism management system is demanded to facilitatethe development and implementation of the tourism strategy through funds allo-cation and monitoring land use control and examination of tourism public- andprivate-sector practices A thorough examination of tourism impacts in eachregion would be a prerequisite for tourism planning as it will establish andprovide scientific backing to strategic targets Komilis (1994 71) explains thatalthough the various levels of planning (sectoral nationalEU spatial or regional)are not mutually exclusive but rather complementary the regional level planningis more suitable for drawing sustainable strategies especially for areas withdissimilar needs like the Greek destinations The regional planning should lsquocon-tribute to the maximisation of regional development benefits in a way that utilisesand mobilises the regional resource base realises regional inter-sectoral linkagesand is compatible with regional economic interests societal values and environ-mental assetsrsquo It should also take into consideration the uniqueness of insulareconomies as well as the cultural and environmental resources of each particularregion and the complexity of rural and urban functions The planning processshould encourage the complementarity and coexistence of economic activitiesrather than promote sectoral separation and single-sector developments In addi-tion it needs to improve the balance between regional self-sufficiency anddependence upon external inputs and finally it should promote integration withinthe European Union
The public sector has to play its long overdue role as regulator coordinatorinfrastructure provider and promoter of the destination while a multi-integrationof the tourism industry with all the involved bodies in the preparation distribu-tion and delivery of the tourism experience needs to be ensured (Wanhill 1993Hall 1994 Skoulas 1994 10 Stavrou 1988 46) The private sector also has an impor-tant role to play as it should improve the Greek tourism industry competitivenessby improving its managerial and labour force competencies enhancing the qualityof services designing appropriate marketing mixes to attract and satisfy targetmarkets and cooperating closely in order to achieve synergies and economies ofscale (Briassoulis 1993 300 Cooper amp Buhalis 1992) To reverse the vicious circleof decreasing quality is of critical importance for the Greek tourism industryBetter quality services would stimulate the competitiveness of the Greek tourismproduct strengthen its position in the international market provide principalswith distribution channel power enhance its customersrsquo willingness to pay andenable the industry to increase its prices improving the profitability at the microlevel and the economic impacts of tourism at the macrolevel Ultimately a diagonalintegration strategy for both Greek tourism and SMTEs should aim to delightconsumers enhance the long-term prosperity of SMTEs and improve the welfareof the host populations The Olympic Games in 2004 offer a unique opportunity toregenerate and rebrand Greek tourism a cause which the entire industry shouldchampion
The AuthorDimitrios Buhalis is Senior Lecturer and course leader MSc in tourism at theUniversity of Surrey He holds a BBA from the University of the Aegean as wellas an MSc and a PhD in tourism management from the University of Surrey Hisresearch interests focus on information systems and technology strategic
474 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
management distribution channels of tourism destination management andplanning and destination integrated computer information reservation manage-ment systems
AcknowledgementsThe author would like to acknowledge Prof C Cooper and Prof J Fletcher for
their invaluable contribution to this research Financial support from the SurreyResearch Group ConTours Consultants as well as field research sponsorshipsby the University of Surrey the Greek National Tourism Organisation and theUniversity of the Aegean are gratefully appreciated
Note1 An earlier version of this paper was published as a monograph PlanningDevelop-
ment by the International Centre for Research and Studies in TourismAix-en-Provence France
CorrespondenceAny correspondence should be directed to Dr Dimitrios Buhalis Senior
Lecturer in Business Information Management SMSSS University of SurreyGuildford GU2 7XH UK (dbuhalissurreyacuk)
ReferencesApostolopoulos T (1990) New strategy of tourism development (in Greek) Tourism and
Economy (November) 228ndash38Berry C (1981) The employee as customer Journal of Retail Banking 3 33ndash40Boniface B and Cooper C (1994) The Geography of Travel and Tourism (2nd edn) London
HeinemannBriassoulis H (1993) Tourism in Greece In W Pompl and P Lavery (eds) Tourism in
Europe Structures and Developments (pp285ndash301) Oxford CAB InternationalBuckley P and Papadopoulos S (1986) Marketing Greek tourism The planning process
Tourism Management 7 86ndash100Buhalis D (1991) Strategic marketing and management for the small and medium
tourism enterprises in the periphery of the European Community A case study for theAegean islands in Greece MSc Dissertation University of Surrey Guildford
Buhalis D (1994) Information and telecommunications technologies as a strategic tool forsmall and medium tourism enterprises in the contemporary business environment InA Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 254ndash75)England J Wiley and Sons
Buhalis D (1995) The impact of information telecommunications technologies on tourismdistribution channels Implications for the small and medium sized tourismenterprisesrsquo strategic management and marketing PhD Dissertation University ofSurrey Guildford
Buhalis D (2000a) Marketing the competitive destination of the future TourismManagement (Special Issue ndash The Competitive Destination) 21 (1) 97ndash116
Buhalis D (2000b) (forthcoming) Athens Tourism-Travel Intelligence LondonBuhalis D (2000c) Relationships in the distribution channel of tourism Conflicts between
hoteliers and tour operators in the Mediterranean region Journal of InternationalHospitality Leisure and Tourism Adminstration 1 (1) 113ndash39
Buhalis D and Diamantis D (2001 forthcoming) Tourism development andsustainability on the Greek archipelagos In G Apostolopoulos and D Ioannides (eds)Tourism in the Mediterranean Routledge
Tourism in Greece Strategic Analysis and Challenges 475
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Buhalis D and Fletcher J (1995) Environmental impacts on tourism destinations Aneconomic analysis In H Coccosis and P Nijkamp (eds) Sustainable Tourism Development(pp 3ndash25) London Avebury
Camison C Bigne E and Monfort VM (1994) The Spanish tourism industry Analysisof its strategies and the efficacy and achievements gained from them In A Seaton et al(eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 442ndash52) England JWiley and Sons
Castelberg-Koulma M (1991) Greek women and tourism Womenrsquos co-operatives as analternative form of organisation In N Redclift and T Sinclair (eds) Working WomenInternational Perspectives on Labour and Gender Ideology (pp 197ndash223) LondonRoutledge
Chitiris L (1991) Hotel Management (in Greek) Athens InterbooksCoccosis H and Parprairis A (1992) Assessing the interactions between environment
and tourism Case study of the island of Mykonos Paper presented in the IV WorldCongress of Regional Science International University of Balearic Islands Palma deMallorca 26ndash9 May
Conway H (1996) Greece Travel Weekly 1308 39ndash43Cooper C and Buhalis D (1992) Strategic management and marketing of small and
medium sized tourism enterprises in the Greek Aegean islands In R Teare D Adamsand S Messenger (eds) Managing Projects in Hospitality Organisations (pp 101ndash25)London Cassell
Daskalantonakis N (1994) Quality ndash The future of tourism (in Greek) TO BHMA (3 July)D9
Divanis A (1994b) Tourism policy Left on its own luck (in Greek) XENIA (October)4ndash5
Donatos G and Zairis P (1991) Seasonality of foreign tourism in the Greek islands ofCrete Annals of Tourism Research 18 515ndash19
Douvitsas P (1994) Marketing Greece through British tour operators A futureperspective MSc Dissertation University of Surrey Guildford
Drakatos C (1987) Seasonal concentration of tourism in Greece Annals of Tourism Research14 582ndash6
EC (1993a) Microeconomic Analysis of the Tourism Sector A study by the pH Group forEuropean Commission DGXXIII (September) Report XXIII30394-EN BrusselsEuropean Commission
EC (1993b) Growth competitiveness employment The challenges and ways forward intothe 21st century Bulletin of the European Communities Supplement 693 (White Paper)Luxembourg
Economist (1993) Last Chance Sisyphus A survey of Greece Economist (22 May) 2ndash22EIU (1986) Greece (pp 45ndash60) International tourist reports National Report No 3EIU (1990) Greece (pp 45ndash62) International tourist reports National Report No 4EIU (1993) Greece ndash Country Profile 1992ndash1993 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEIU (1994) Greece ndash Country Profile 1994ndash1995 Annual Survey of Political and Economic
Background London Economist Intelligence UnitEpilogi (1994) Economic review ndash The Greek Economy 1994 (in Greek) AthensEuromonitor (1992) Tourism in Greece Market Research Europe (25 May) 51ndash63Fayos-Sola E (1992) A Strategic Outlook for Regional Tourism Policy The White Paper
on Valencian Tourism Tourism Management 13 45ndash9Fotis J (1992) Vacational lifestyle segmentation of tourists on the island of Rhodes
Greece MSc Dissertation University of Surrey GuildfordGilbert D (1984) The need for countries to differentiate their tourist product and how to
do so Seminar papers for Ministers of Tourism and Directors of National TouristOrganisations Tourism Managing for Results University of Surrey Guildford
Gilbert D (1990) Strategic marketing planning for national tourism Tourist Review 45 (1)18ndash27
GNTO (1985a) Survey of attributes of foreign tourists 1984ndash1985 (in Greek) Greek NationalStatistical Services Athens GNTO
476 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
GNTO (1985b) EOT-Tourism rsquo85 Development ndash Participation ndash Quality of Life (in Greek)Greek National Statistical Services Athens GNTO
GNTO (1989a) Annual report 1988 ndash Forecast 89 Towards Quality Athens GNTOGNTO (1989b) The study of tourism promotion With special reference to the measures to
increase Japanese tourists to Greece Draft final report Japan InternationalCooperation Agency
GNTO (1993) Tourism towards the 2000 (in Greek) Greek National Tourism OrganisationAthens GNTO
Hall M (1994) Tourism and Politics Policy Power and Place J Wiley and SonsHorwath (annual) The Greek Hotel Industry (in Greek) Annual reports Pireus HorwathJenner P and Smith C (1993) Tourism in the Mediterranean Research report London
Economist Intelligence UnitJosephides N (1993) Environmental Concern ndash Whatrsquos In It for the Tourism Industry (pp 51ndash6)
Proceedings of the conference Tourism and the environment Challenges and choicesfor the 1990rsquos 16ndash17 November 1992 Queen Elizabeth II Conference Centre LondonBrussels European Union
Josephides N (1994) Tourism analysis Presentation in Philoxenia international tourismexhibition Thessaloniki Greece
Josephides N (1995) A sorry state for beautiful Greece Travel Weekly 1261 (5 April)11Kalogeropoulou H (1993) Greece ndash Prospects for the tourism industry within the context
of the European Single Market of 1993 Tourism Review 48 (1) 2ndash4Kassimati K Thanopoulou M and Tsartas P (1994) Womenrsquos Employment in the
Tourist Sector Study of the Greek Labour Market and Identification of Future ProspectsDGV Equal Opportunities Unit Document V40994-EN European CommissionBrussels
Komilis P (1987) Spatial analysis of tourism in Greece (in Greek) Athens Centre of Planningand Economic Research
Komilis P (1992) The spatial structure of tourism and physical planning practices inGreece Paper presented in conference Tourism and environment Issues ofpolicyplanningmanagement 23ndash4 October University of the Aegean Dept ofEnvironment Lesvos
Komilis P (1993) Values in the Tourism Planning and Policy Making Process (pp 224ndash9)Proceedings of the conference Values and the environment 23ndash4 September GuildfordUniversity of Surrey
Komilis P (1994) Tourism and sustainable regional development In A Seaton et al (eds)Tourism ndash The State of the Art The Strathclyde Symposium (pp 65ndash73) England JWiley andSons
Konsolas N and Zacharatos G (1993) Regionalization of tourism activity in GreeceProblems and policies In H Briassoulis and J Van der Straaten (eds) Tourism andEnvironment Regional Economic and Policy Issues (pp 57ndash65) Dordrecht Kluer AcademicPublisher
Kousis M (1989) Tourism and the family in a rural Cretan community Annals of TourismResearch 16 318ndash32
Kriebardis S and Marmagiolis I (1990) Tourism Activity in Greece Problems and Perspectives(pp 45ndash54) (in Greek) Economic Report of Commercial Bank AprilndashJune AthensCommercial Bank
Ktenas S (1994) Hoteliers ask for 15 to 20 increases for 1995 (in Greek) TO BHMA (3July) D9
Ktenas S (1996) Crisis in Greek tourism (in Greek) TO BHMA (7 April) D16Leontidou L (1991) Greece Prospects and contradictions of tourism in the 1980rsquos In AM
Williams and GJ Shaw (eds) Tourism and Economic Development Western EuropeanExperiences (2nd edn) (pp 94ndash106) London Belhaven Press
Logothetis M (1990) The Economy of Dodekanisos During 1988ndash1989 Developments andPerspectives (in Greek) Rhodes Regional association of municipalities of Dodekanisos
Logothetis M (1992) Touristiki Sigkiria (in Greek) Rhodes Institute of Tourist and HotelResearch
Tourism in Greece Strategic Analysis and Challenges 477
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Loukissas P (1977) The impact of tourism on regional development A comparativeanalysis of the Greek islands PhD Dissertation Cornell University USA
Loukissas P (1982) Tourismrsquos regional development impacts A comparative analysis ofthe Greek islands Annals of Tourism Research 9 523ndash43
Marinos P (1983) Small island tourism-the case of Zakynthos in Greece TourismManagement 4 212ndash15
Moore R (1992) From shepherds to shopkeepers The development of tourism in a centralGreek town PhD Dissertation University of California at Berkeley USA
Moore R (1995) Gender and alcohol use in a Greek tourist town Annals of Tourism Research22 300ndash13
Mourdoukoutas P (1988) Seasonal employment seasonal unemployment andunemployment compensation The case of the tourism industry of the Greek islandsAmerican Journal of Economics and Sociology 47 315ndash29
NSSG (l983) Tourism Statistics 1981 Athens National Statistic Service of GreeceNSSG (l985) Tourism Statistics 1982ndash1983 Athens National Statistic Service of GreeceNSSG (1987) Tourism Statistics 1984ndash1985 Athens National Statistic Service of GreeceNSSG (1990) Tourism Statistics 1986ndash1987 Athens National Statistic Service of GreeceNSSG (1993) Tourism Statistics 1988ndash1990 Athens National Statistic Service of GreeceOECD (1992) Greece Tourism Policy and International Tourism in OECD Member Countries (pp
70ndash8) Paris OECDOttaway M (1992) Turtle power Sunday Times Travel and Style (28 June)Ottaway M (1993) Greece The ultimate island guide ndash Part 1 Sunday Times (17 January)
57ndash59Panagiotopoulou R (1990) The problem and perspectives of the European insular regions
(in Greek) Working paper University of the Aegean ChiosPapadimitris G (1988) Short run and long run prospects of the Greek tourism industry
PhD Dissertation University of Manchester ManchesterPapadopoulos S (1985) An economic analysis of foreign tourism in Greece An
examination of the growth and structure of foreign tourism to Greece 1960ndash1984 with aplanning model and marketing policy recommendations PhD Thesis University ofBradford Management Centre Bradford
Papadopoulos S (1987) Strategic marketing techniques in international tourismInternational Marketing Review (summer) 71ndash84
Papadopoulos S (1988a) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (1) 29ndash30
Papadopoulos S (1988b) An examination of non-economic factors related to tourism inGreece Tourism Review 43 (2) 24ndash7
Papadopoulos S (1989) Greek marketing strategies in the Europe tourism market ServiceIndustries Journal 9 297ndash314
Papadopoulos S and Mirza H (1985) Foreign tourism in Greece An economic analysisTourism Management 6 125ndash37
Papandropoulos A (1995) The crisis in tourism is evident (in Greek) OikonomikosTachydromos (29 June) 26ndash8
Papanikos G (1999) The year 2004 olympic games and their influence upon the Greektourism (in Greek) ITEP (Research Institute for Tourism) Athens
Paulopoulos P (1999) The Size and Dynamics of the Tourism Sector (in Greek) ResearchInstitute for Tourism Athens
Peterson C (1990) Greece tackles overbuilding in tourism areas EnvironmentalConservation 17 166ndash8
Plevris V (1995) Alarm bells from the Hellenic Federation of Hotels (in Greek) XENIA128 (May) 6ndash7
Poon A (1987) Information technology and innovation in international tourism ndashimplications for the Caribbean tourism industry PhD thesis Science Policy ResearchUnit University of Sussex Brighton
Poon A (1988) Flexible specialisation and small size ndash the case of Caribbean tourism DRCDiscussion Paper 57 SPRU Brighton University of Sussex
478 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
Poon A (1989) Competitive strategies for new tourism In C Cooper (ed) Progress inTourism Recreation and Hospitality Management (vol 1) (pp 91ndash102) London BelhavenPress
Poon A (1990) Flexible specialisation at small size The case of Caribbean tourism WorldDevelopment 18 109ndash23
Poon A (1993) Tourism Technology and Competitive Strategies Oxford CAB InternationalPorter M (1980) Competitive Strategy Techniques for Analysing Industries and Competitors
New York Free PressPorter M (1985) Competitive Advantage Creating and Sustaining Superior Performance New
York Free PressPorter M (1990) The Competitive Advantage of Nations New York Free PressPrurier E Sweeney A and Geen A (1993) Tourism and the environment The case of
Zakynthos Tourism Management 14 137ndash9Psoinos P (1994a) Research on the foreign touristsrsquo attributes in Greece (in Greek) Athens
Greek National Tourism OrganisationPsoinos P (1994b) Research on the attributes of foreigners who have never visited Greece (in
Greek) Athens Greek National Tourism OrganisationRichter-Papaconstantinou C (1992) Tourism development of Rhodes Cahiers du Tourisme
(Serie B) 67 Aix en Provence Centre des Hautes Eacutetudes TouristiquesRomanos A (1998) Unification of Athens Archaeological Sites (in Greek) Athens
Unification of Athens Archaeological Sites SASETE (1993) Tourism Developments and problems (in Greek) Athens Association of Greek
Tourism EnterprisesSezer H and Harrison A (1994) Tourism in Greece and Turkey An economic view for
planners In A Seaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposiumpp74ndash84 England Wiley and Sons
Skoulas N (1985) Holidays and travel in the year 2035 ndash Contribution of the NationalTourist Organisation of Greece SDI Schriftey Wirtschafts und Unternehmenspolitik 40181ndash99
Skoulas N (1994) Quality improvement of tourism services (in Greek) Paper presentedin the conference Competitiveness of tourism enterprises ndash the role of quality 1 AprilHoliday Inn Athens Association of Greek Tourism Enterprises
Smith C and Jenner P (1995) Greece International Tourism Reports 3 5ndash21Stavrou S (1978) Research of Tourism Social Acceptance in Kos Island (in Greek) Research and
Development Division Dept A1 Athens Greek National Tourism OrganisationStavrou S (1979) Research of Tourism Social Acceptance in Mykonos and Naxos Islands (in
Greek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1980) Research on Tourism Awareness on the Islands Kalymnos and Leros (in Greek)Research and Development Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1984) Tourism Development in Greece during 1969ndash1982 (in Greek) Research andDevelopment Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1986a) Research for the Characteristics of Foreign Tourist Demand in Greece in theYears 8485 (in Greek) Research Division Dept A1 Athens Greek National TourismOrganisation
Stavrou S (1986b) Research on the Tourism Awareness on Paros Santorini Kythira Islands (inGreek) Research and Development Division Dept A1 Athens Greek NationalTourism Organisation
Stavrou S (1986c) Critical Review of Tourism Activity in the Years 8385 (in Greek) Researchand Development Division Dept A1 Athens Greek National Tourism Organisation
Stavrou S (1988) Tourism in the Northern Aegean Islands Presentation of GNTO for the TourismDevelopment of the Periphery (in Greek) Proceedings of the first conference for thedevelopment of the Northern Aegean islands Homereum cultural centre Chios 11November Chios Periphery of Northern Aegean islands
Stavrou S (1989a) GNTO Presentation for the Tourism Development Possibilities for theSouthern Aegean Islands (in Greek) Conference for the development of Southern Aegean
Tourism in Greece Strategic Analysis and Challenges 479
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism
islands Syros 30 September ndash 2 OctoberStavrou S (1989b) The Contribution of the Development Law 126282 in the Development of the
Country (in Greek) Research and Development Division Dept A5 Athens GreekNational Tourism Organisation
Stereopoulos N (1995) It is regarded ideal it became problematic (in Greek) OikonomikosTachidromos (21 December) 151ndash3
Touloupas P (1996) Greece as a tourist destination for the British tour operators Ananalysis from a marketing perspective in the particular context of the United KingdomMSc Dissertation University of Surrey Guildford
Tourismos ke Oikonomia (1993) 20 years 1973ndash1993 (in Greek) Special Issue AthensTourismos ke Oikonomia (1994) ICAP tourism enterprises Drastic reduction of loses in 1993
(in Greek) December 14ndash15Touristiki Agora (various issues) (Monthly tourism industry periodical in Greek) Business
Press AthensTruett D and Truett L (1987) The response of tourism to international economic
conditions Greece Mexico and Spain Journal of Developing Areas 21 177ndash90Tsartas P (1989) Socioeconomic Impacts of Tourism Development in Cyclades Region with Special
Reference on Ios and Serifos Islands During 1950ndash1980 (in Greek) Athens National Centrefor Social Research
Tsartas P (1992) Socioeconomic impacts of tourism on two Greek isles Annals of TourismResearch 19 516ndash33
Van Den Bergh J (1993) Tourism development and natural environment Aneconomicndashecological model for the Sporades islands In H Briassoulis and J Van DerStraaten (eds) Tourism and Environment Regional Economic and Policy Issues (pp 67ndash83)Dordrecht Kluer Academic Publishers
Velissariou E (1991) Die Wirtschaftlichen Effekte des Tourismus Dargestell am Beispiel Kretas(The Economic Impacts of Tourism on Crete) PhD Dissertation University of MunichFrankfurt Peter Lang
Vernikos N (1987) The study of Mediterranean small islands Emerging theoreticalissues Ekistics 54 (323ndash4) 101ndash9
Wanhill S (1993) Government organisations In C Cooper J Fletcher D Gilbert and SWanhill (eds) Tourism Principle and Practice (pp 145ndash60) London Pitman
Wickens D (1994) Consumption of the authentic The hedonistic tourist in Greece In ASeaton et al (eds) Tourism ndash The State of the Art The Strathclyde Symposium (pp 819ndash25)England JWiley and Sons
Wickens E (2000) Rethinking touristsrsquo experiences In M Robinson et al (eds) MotivationsBehaviour and Tourist Types (pp 455ndash72) Business Education Publishers Sunderland
Wickers D (1993) Greece The ultimate island guide ndash Part 2 Sunday Times 57ndash510Wilkinson PF (1989) Strategies for tourism in islands microstates Annals of Tourism
Research 16 153ndash77XENIA (various issues) (Monthly bulletin of the Greek Hotel Chamber in Greek) AthensZacharatos G (1984) Tourismus und Wirtschafts-Struktur Dargestellt am Beispiel
Griechenlands Europaische Hochschulschriften Reihex Band 7 Frankfurt am MainZacharatos G (1986) Tourism consumption (in Greek) Athens Centre of Planning and
Economic ResearchZacharatos G (1988) The simplistic empiricism Tourism policy and the time of crisis
(1992) (in Greek) Sychrona Themata 11 (May) 21ndash6Zacharatos G (1989) The problems and perspectives of tourism in Greece (in Greek) In H
Katsoulis T Giannitsis and P Kazakos (eds) Politics and Society Economy and ForeignRelationships (pp 273ndash89) Athens Papazisis
Zacharatos G (1993) The necessity of multimedia use in the tourism education in Greece(in Greek) Paper presented at the international conference Overcomingisolation-telematics and regional development University of the Aegean Chios 30April ndash 2 May
480 Current Issues in Tourism