In­vest­ment in tourism drops

Kathimerini English - - Focus -

In­vest­ment in Greek tourism – ar­guably the coun­try’s ‘heavy in­dus­try’ – de­clined 75 per­cent from 2008 to 2015, the Hel­lenic Fed­er­a­tion of En­ter­prises (SEV) re­ported in its weekly bul­letin yes­ter­day.

Gross in­vest­ment in tourism amounted to just 415.1 mil­lion eu­ros in 2015, com­pared with 1.63 bil­lion in the last year be­fore the out­break of the cri­sis. The rate of de­cline is greater than in­vest­ments in the en­tire econ­omy in the same pe­riod, which came to 65 per­cent.

Af­ter amor­ti­za­tion, net in­vest­ment in tourism was deep in neg­a­tive ter­ri­tory at -418.7 mil­lion eu­ros in 2015, as the in­vest­ments of 415.1 mil­lion eu­ros were dwarfed by the amor­ti­za­tion of 833.8 mil­lion eu­ros. This means that the in­vest­ment in tourism did not even suf­fice for the main­te­nance of the equip­ment at ho­tels and restau­rants.

SEV com­mented that the lack of in­vest­ment in the tourism sec­tor may be re­lated to the stag­na­tion in tourism rev­enues per night stayed in Greece, as this is partly af­fected by the in­abil­ity to set higher prices due to the low spe­cial­iza­tion of the tourism prod­uct.

It added that Greek tourism at­tracts tourists of ever-lower in­comes, who are ac­com­mo­dated at tourism in­fra­struc­tures whose main­te­nance is in­creas­ingly ne­glected, as is the ad­di­tion of new equip­ment. It also made a spe­cial ref­er­ence to the pun­ish­ing tax­a­tion af­ter a value-added tax hike on ac­com­mo­da­tion and pas­sen­ger trans­port.

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