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Greek Hoteliers Expect 67% Drop in 2020 Turnover

Hotel Reception

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Greek hoteliers are expecting to see their turnover drop by 67 percent this year with 6.4 percent opting to remain closed due to lagging demand and lack of liquidity, as a result of the Covid-19 crisis, the fourth study in series carried out by the Institute for Tourism Research and Forecasts (ITEP) this week revealed.

The study was conducted for the Hellenic Chamber of Hotels (HCH) over the June 30-July 10 period on a sample of 1,941 (out of 9,999) HCH member hoteliers.

Key takeaways of the study:

– The majority (84 percent) of the hotels that participated in the study are expected to be open in August.

– Greek hotels’ financing needs are now estimated at 1.66 billion euros.

– Hoteliers expect to see turnover drop by 67 percent to an estimated 2.8 billion euros this year from 8.4 billion euros in 2019 (5.6 billion in losses) and a 35 percent decline in employment from 186,574 employees in 2019 to an estimated 120,979 this year.

9 percent of hoteliers still haven’t decided if they will open this year while 6.4 percent will not citing low demand and lack of liquidity.

– 90.7 percent of the year-round hotels have or will open by August and 80.5 percent of seasonal hotels.

– The vast majority (96.9 percent) of hoteliers operating all-year facilities expect an average 65.5 percent drop in turnover while 98 percent operating seasonal hotels are forecasting a 73 percent decline. Both figures have decreased further compared to the second study carried out in April (95 percent – 56.3 percent and 94.2 percent – 56.1 percent).

Additionally, according to the study, other financial burdens include a total of 161,351,954 euros returned to tour operators, travel agents and customers. At the same time, hoteliers have already issued 89,968,317 euros worth of vouchers, while pending reimbursements due to Covid-19 standing at 143,250,937 euros.

Describing the season as a “year of massive losses”, HCH President Alexandros Vassilikos called for actions that will support liquidity and simplify procedures.

“The resources from the programs that have been designed and the financial tools that have been announced have not yet reached the hotels. Our research confirms the need to speed up and simplify relevant procedures,” he said.

According to another study released earlier this week by the Athens-Attica & Argosaronikos Hotel Association and the Thessaloniki Hotels Association, the coronavirus pandemic has taken a 350-million-euro bite out of revenues for hotels in Greece.

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