Greek Tourism Buckles Under Pressure of Strikes and Fuel Shortage

by Tanya Thomas on  August 03, 2010 at 10:38 AM Lifestyle News
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The authorities were forced to use military vehicles and petrol station trucks to alleviate the shortage but supplies were unlikely to return to full capacity before Monday.

The truckers say that boosting competition in the freight sector by reducing new licence charges is unfair to existing operators who have already paid high start-up fees running up to 300,000 euros (391,000 dollars).

The plan is part of a reform programme that the government committed to in May in exchange for a 110-billion-euro (143-billion-dollar) bailout loan from the International Monetary Fund and European Union to stave off debt default.

The country's leading unions have staged six general strikes and several protests since the start of the year against wage and pension cuts ordered by the Socialist government which came close to bankruptcy earlier this year.

The main Greek port of Piraeus that links the mainland with islands popular with holidaymakers has also been repeatedly blockaded by protesters this year while a work-to-rule action by air traffic controllers in late July caused widespread flight delays.

With its back against the wall, the Greek government in June promised to compensate travellers stranded in the country by labour unrest.

But officials have so far given no details on the level of compensation nor how it would be paid.

"The present situation is turning into a disaster for the country, the economy and tourism," the association of Greek tourism entreprises (SETE) said in a statement this week.

The fuel shortage was discouraging tourists from neighbouring Bulgaria, Macedonia, Romania and Serbia from driving to Greece, SETE added.

Before the fuel trouble struck, Greek hotels faced a three-percent fall in bookings and a drop in proceeds of 10-12 percent, Andreadis said.

"A fall of one percent in tourism proceeds corresponds to 200 million euros in lost income for the country and 1,000 job losses," he told Flash Radio.

"And this is the worst showing in Europe, all our competitors including eurozone countries such as Spain and Portugal have increased their proceeds this year."

Source-AFP
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