Greek Tourism Affected by British Recession

by Alister POOLE on August 25, 2009

If the first half of the year is any indication, Greece may be joining the growing number of countries in an economic recession.  Information from the Central Bank shows that Greece is at major economic risk after travel number dropped steeply in the first six months of 2009.  With the tourism industry supplying a large number of jobs, it will take a quick turnaround for the country to avoid its first recession since 1993.

The Bank of Greece released a report which showed non-resident spending in Greece to be down nearly 15 percent between January and June 2009.  And the summer months aren’t forecasting to be much better, as sluggish June numbers show a nearly ten percent drop from this time last year. 

The bulk of the nearly 15 million tourists who visit Greece each year come from the UK and Germany, two countries hit hardest by the global recession.  The tourism industry is not just fighting the economy; concerns over the outbreak of the swine flu virus have also kept many holidaymakers at home.

This drop in tourism directly correlates to the steep rise in unemployment in Greece, as the number of those out of work rose to nearly 8.5 percent, as high as it has been in years.  Greece has flirting with recession since the second quarter, which saw only modest growth in the overall economy.

Thanks to the New York Times for the above information.  For the complete article, please visit their website.

Comments on this entry are closed.

Previous post: UK Travelers Face Fraud in U.S. Hotels

Next post: Greyhound Buses Roll into United Kingdom