UNIVERSITY OF IOANNINA Department of economics Course English

UNIVERSITY OF IOANNINA Department of economics Course : English for economists IV 09. 04. 2014

ECONOMIC CRISIS AND GREEK TOURISM ARGYRIOU CHRYSOULA 2340 IORDANOPOULOS SAVVAS 2391 KONSTANTINIDOU SOFIA 2432 LIAKOU PINELOPI 2442

TOPICS �What is economic crisis ? �How began ? �Impact of crisis on social life. �The importance of tourism in Greece. �Kinds of tourism. �Causes of economic crisis on tourism. �Consequences of economic crisis on tourism. �Evolution of Greek tourism. �Future prospects.

WHAT IS ECONOMIC CRISIS? �The phenomenon in which an economy is characterized by a sustained economic activity decrease. �Is one of the two phases of economic fluctuations and specifically the decline in economic activity.

HOW BEGAN? �Economic crisis began in the middle of 2007 in the USA and affected Greece in 2008. �In 2009 Greece requested assistance from the International Monetary Fund and the Central Bank to cope the debt.

IMPACT OF CRISIS ON SOCIAL LIFE �Greek crisis had impact on society and Greece demanded debt reduction. �Greek crisis is based on structural problems and policies implemented.

THE IMPORTANCE OF GREEK TOURISM �Tourism is one source of revenues for Greek economy, through taxes. �It increases the Gross Domestic Product approximately by 20 billion euro. �Employment is affected positively by tourism , reducing unemployment.

KINDS OF TOURISM �Greece combines winter and summer tourism. �Winter : monuments and ski resorts. �Summer : warm climate and dreamy islands.

SEASONALITY OF TOURIST ARRIVALS 1995 -2010

CAUSES OF ECONOMIC CRISIS �The Greek economy is based on primary growth sector, shipping and tourism. �Greece is not famous for its exports. � The Greek industrial sector is not particularly developed. �A high ratio of revenues comes from touristic services.

CONSEQUENCES ON TOURISM �Greek citizens were forced to reduce their travelling. �Foreign tourists were obligated to limit their expenses. �The high price level led many visitors to consume less on their holidays. �Tourists reduced mainly the duration of their vacation. �It is noticed an increase in tourist traffic, but not an increase in profits.

EVOLUTION OF GREEK TOURISM �Redefinition of tourism policy so that Greece can compete to popular destinations. �Main goals of the plan : 1) improving competitiveness and 2) reducing seasonality. �To achieve goal no 1 government should promote the natural and cultural Greek beauty. �To achieve goal no 2 they should improve substructures which serve tourism all year . (airports, hotels)

FUTURE PROSPECTS �Predictions for 2014 18. 5 million tourists which is translated into more than 13 billion revenues. �More German, French and English are going to visit Greece in 2014. �Russia has the highest increase in bookings of 20% compared to 2013. �USA, Holland, Scandinavian countries and Austria produce double digits rate of climb. �Turkish tourists are going to reach 1 million. �Italian and Spanish tourists cannot be predicted because of the financial crisis that they are going through. � 22 -24 millions are going to reach the tourists that travel to Greece at the next 10 years.

IN CONCLUSION…

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