
While Greece burns in an inferno of labour unrest, which
is fodder for the insatiable news media around the world, the government
seems to be standing firm in its programme of sweeping austerity measures to
combat the current financial crisis.
The strikes, however, have accomplished one thing: according to industry
insiders, the labour protests, some extremely violent, have almost
single-handedly cut the number of tourists coming to Greece, and Crete, by
30 to 50 percent, depriving the country of much-needed income from one
of its top industries.
While advance reservations in general are down over 30 percent,
cancellations are pouring in at an extraordinary rate.
The Association of Greek Tourism Enterprises (SETE) reported that in the
first 24 hours after the general strike in early May, more than 5,800
reservations were cancelled in 28 Athens hotels alone. While
there are no official records for Crete, a
random survey of local hoteliers confirms similar conditions.
Particularly hard hit are the conference, seminar and special event
segments of the industry, of which Crete
is a major player.
And, according to a local property agent, hundreds of hotels and
thousands of business are up for sale, but no one is interested. Actually,
more than 400 hotels, including some luxury complexes, are now officially
for sale, 44 of which are in Crete, all at
bargain-basement prices. One report estimates the value of all properties
currently on the market at more than five billion euros.
“Owning a hotel is no longer a good business,” said a
Crete hotel owner, who offers 70 rooms and more than 200 beds.
“It’s mid-May and only eight rooms are occupied at the moment. And the
coming high season doesn't look good either, with only 50 percent of my
rooms already booked -- in the middle of the summer vacation period! How are
we supposed to continue?” he asked.