World Travel Trend Forum Pisa, 28.10.2015

Managing tourism in times of crisisThe case of Greece

George DrakopoulosPresident & CEO tourism generis

Outline

Impact of the international crisis on Greek tourism (2008-2009)

Impact of the Greek crisis on Greek tourism (2010-2014)

What happened in what level?Spray & Pray InstitutionalSupply & DemandHuman Resources

Int. crisis 2008-2009

International Arrivals Δ 2009-2008World -4.2%Europe -5.7%Greece -6.5%

Brand performance

(14)

(22)

2010

Brand performance

expected...

• TOs pressure....

73%

27%

incoming domestic

89%

11%

incoming domestic

International vs domestic

2008 2015

blame the crisis

GR-Basic figures 2008-2014

2008 2014 ΔGDP (bi Euros) 242 179 -26%

GR-Basic figures 2008-2014

2008 2014 ΔGDP (bi Euros) 242 179 -26%

Int. Arrivals (000) 15.9 22.0 +38%Int. Receipts (bi Euros) 11.6 13,1 +12%

GR-Basic figures 2008-2014

2008 2014 Δ%GDP (bi Euros) 242 179 -26%

Int. Arrivals (000) 15.9 22.0 +38%Int. Receipts (bi Euros) 11.6 13,1 +12%

Average Spending (Euros) 730 590 -20% ?

GR-Basic figures 2008-2014

2008 2014 Δ%GDP (bi Euros) 242 179 -26%

Int. Arrivals (000) 15.9 22.0 +38%Int. Receipts (bi Euros) 11.6 13,1 +12%

Average Spending (Euros) 730 590 -20%TT % contribution to GDP

DirectTotal

5.9%16.8%

6.9%17.3%

+17%+3%

??

GR Employment (000)

2008 2014 ΔJobs

(all sectors) 4,595 3,535 -23%

Total Travel & Tourism 854 700 -18%

Direct Travel & Tourism 361 340 -6%

What happened then?

• Spray & Pray level• Institutional • Supply & Demand • Human Resources

Thank God???

Institutional

Jan 2008-Dec 2014

Ministers 4 Deputy Ministers 4 Sec Gen Ministry 5 NTO Chair 5 NTO Sec Gen 4 NTO Special Sec 1

Institutional

Jan 2008-Dec 2014

Ministers 4 Deputy Ministers 4 Sec Gen Ministry 5 NTO Chair 5 NTO Sec Gen 4 NTO Special Sec 1

Oct 2009 – Dec 2014

Political consensus

Planning for the future

Heavy Investment

4550

58

More investmentNo of Hotel Beds

2008 2014 Δ

Total

715,855

779,118 8,8%

5* & 4* 262,364 319,930 22%

VISA facilitation

Solidarity PR

More PR activities

Fam trips for foreign journalists and tour operators from Germany, United Kingdom, Russia & China

Competition Bild: • 100 weeks of holiday• 200 lucky readers

Social media hot

Social media hot

Social media hot

Social media hot

Competing in a wrong wayfocusing on price instead on value for money

demand/price elasticity

VAT– accommodation– food– drinks– transportation

Human resources

Lower salaries but still high social security contributions

Part of labour market in black?Tourism vocational schools downgradedBrain drain............................... ................... ... ............Talent shortageLack of expertiseService will suffer?

Success story?

2008 2014 Δ%GDP (bi Euros) 242 179 -26%

Int Arrivals (000) 15.9 22.0 +38%Int Receipts (bi Euros) 11.6 13,1 +12%

Complicated simplicity

• tourists• investors

• Business community

• EU• IMF• ECB

• voters

Domestic audience

International audience

International audience

Domestic audience

Political Approach

Business Approach

1993-2014, ups & downs

1993

1994

1997

1998

1999

2000

2001

2005

2006

2007

2010

2011

2012

2013

2014

1995

1996

2002

2003

2004

2008

2009

decade balance

decade yrs up yrs down

2001-2010 5 5

2002-2011 5 5

2003-2012 5 5

2004-2013 6 4

2005-2014 7 3

Conclusions here(recommendations next slide)

• Long term plan reference• Proactive to the media• Invest in marketing research• Segmentation of everything• Create PPP structures