The military conflict in the Middle East and the rise in fuel prices are reducing early bookings and hoteliers’ profits.
The tourism sector in Greece is entering a period of serious uncertainty, dictated by the escalation of military tensions in the Middle East. Although the government, represented by Prime Minister Kyriakos Mitsotakis, guarantees the safety of the destination, the business environment remains cautious due to the slowdown in early bookings and the erosion of profit margins, writes Econ.
In an interview given to a Greek publication in Australia, Prime Minister Mitsotakis urged tourists not to give up on their summer plans, emphasizing that the country remains outside any danger, despite the military tensions around Iran. However, industry representatives do not share this optimism. Currently, bookings mainly come from European markets, but their volume is very limited, and consumers are demonstrating extremely cautious behavior.
Sector experts predict that even if the number of visits remains the same, the economic effect will be weaker due to the combination of high transport costs and a general increase in the price of services. With gasoline prices at 2 euros per liter and above, a serious redirection of the tourist flow is expected. As a vacation on the islands requires a significantly larger budget, forecasts are of increased interest for northern Greece, which is more accessible by land.
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