Tourists face food shortages if Greece leaves euro, warns economist

Holidaymakers visiting Greece this summer could face food and fuel shortages if the country exits the eurozone, a senior economist warned today.

Dr Brian Clark of Barclays told the bank's annual Travel Forum that it was now "more than likely" that Greece would exit the eurozone, but he said the prospect was "quite frightening".

He said the currency would plummet in value over night, there would be limits on how much money tourists could take in and out of Greece, and there would be limited funds to pay for imports such as fuel and food.

"Will tourists be able to change money, will there be enough fuel for their flight home?" said Clark.

Drawing comparisons with Argentina when it defaulted on its debt in 2001, Clark said it would be a "fairly traumatic experience." He said that in Argentina "there was major civil unrest, people couldn't get money out of the bank, and the country had a non-functioning economy".

"It was not a place you wanted to go on holiday."

However, Greece's tourism industry is attempting to reassure visitors that the country's economic woes won't affect their holidays. In a press release issued this afternoon, the president of the Association of Greek Tourism Enterprises, Dr Andreas Andreadis, said: "We want to encourage international tourism and assure potential tourists that there has never been a better time to come to our country.

"We are trying to change the way our country and its economy is run, however, this is not going to affect the quality of a holiday. Greece remains one of the top destinations in the world and we reassure holidaymakers that this summer remains business as usual."

It said that polls show 80% of the Greek people are in favour of Greece remaining within the eurozone. It also pointed out that the G8 leaders were pleading with Greece to stay.

Greek banks are solvent, he said, and will receive an injection of €18bn from the European Support Fund this week. "Holidaymakers will be able to make any kind of financial transactions as usual in Greece during the 2012 summer.

"Holidaymakers will be able to lock in the best exchange rate since 2008. In fact, hotels and apartments are offering very favorable rates during this time enabling guests to experience a great holiday for reduced prices. In Greek cities and resorts, hotels are offering a wealth of extra benefits such as free extra meals or free children," added Andreadis.

He also pointed out that there was less likelihood of strikes this summer while the country prepares for a second round of national elections.

Nevertheless, the majority of the 300 delegates attending this year's Barclays Travel Forum admitted they were worried about the eurozone crisis - yet 72% admitted they hadn't made any contingency plans for Greece exiting the euro.

However, 62% said that if Greece, Spain, Italy and Portugal abandoned the euro they would expect to see an increase in tourism.

Clark said the best outlook for holidaymakers would be for Greece to stick with the euro but to have an internal devaluation, which would lower prices in hotels and restaurants and generate more income.


With permission from Travelmole

Hi...it seems there are so many differing opinions ....its going to be suck it and see....Im going out to Rhodes with thomascook....and dont think they would want to have the responsibility of getting all there customers home early...or sorting out big problems in the resorts....so if worse happened we would be offered alternative holidays....or refunds...tweetie

I agree Tweetie. We've booked so we'll take our chances and make the most of it until we hear everybody singing from the same songsheet to the lyrics of we're advising tourists not to go to Greece.

well Ive just been for a good mooch on thomascook....as keeping my eye open for sept....and considering everything....no rock bottom prices yet...tweetie

I have holidayed in both Tunisia and Morocco where where both country's currency cannnot be taken in or out of the country. We have not incurred any probelms in changing sterling when we arrived in either country or in using ATM's or credit/debit cards. So I would imagine it would be a similiar situation if Greece became a closed currency country by dropping out of the Euro. I have always felt that the Eurozone is one big expensive mistake, too many differences.

I heartily agree with the travel forum report, it is honest. I think everything depends on whether Greece can manage to elect a new government, but that event is two weeks away so we prospective holiday makers will have to wait and see. As to the food shortages - well a good diet won't do me any harm and probably a lot of good!! However it might not help the Greek family very much, but of course many families in Greece grow their own produce.

Consumers warned against independent trips to Greece

A consumer watchdog is urging holidaymakers considering trips to Greece to book packages to ensure their money is protected if the country exits the eurozone this summer.

Which? is warning its readers that packages booked through UK tour operators are a safer bet than booking flights and accommodation separately, said a report in the Telegraph.

It went on to say that holidaymakers who do book independent trips should pay by credit card, so they will be guaranteed refunds if things do go wrong, and to buy travel insurance with supplier failure cover.

A senior economist last week warned that tourists visiting Greece could face fuel and food shortages if the country defaults on its debt and abandons the euro, (see earlier story) which prompted the Association of Greek Tourism Enterprises to highlight the value for money available to holidaymakers.

It is hoping that recent price reductions by hoteliers and restaurants will lure more tourists who might otherwise be put off by Greece's financial and political instability.

With permission from Travelmole

having not long come back from zakynthos my observations are the people in the resort areas are more concerned by the reduced number of visitors [mainly from the u.k, and northern Europe the Russians are still booking to grab the bargains]

as i said at the beginning of the problems, Visitors are even more welcome and although street prices are about the same as last year with the current euro rate it seems less of a hit on the back pocket..

wiz

That warning comes a bit late for us as we booked our independent holiday to corfu last year. However, we've booked direct with the hotelier and have only paid a deposit, intending to pay the balance on arrival. If it all goes belly up and the hotelier goes out of business, I suppose we could lose our deposit but at least the rest of the money is still in our pocket. We'd have a mad rush then to alter our flights to a different destination.
I seriously hope it doesn't come to that.

we have also booked independent to Zante for august, i have paid the hotel in full but im not really worried, paid for the flights by CC

i've also paid for our flights by cc but we won't be able to claim the flight money back however we've paid unless it's a problem with the airline that stops us from going. That's the risk we take by going independent.

We are thinking of booking a Greek Island holiday for 2013 but I am concerned due to the current financial crisis in Greece, however, I have no idea whether I should be concerned or not. Therefore, if Greece pull out of the Euro what will this mean to tourism?

- Will the cost of holidays go up or come down?
- Will the cost of food and drink whilst away be more expensive?
- Is it advisable to book a holiday now or should we wait?
- Should I just avoid Greece entirely?

Help me please...

Thanks in advance.

Welcome to HT Lazzareo. Have a read here, where the subject is under discussion http://www.holidaytruths.co.uk/viewtopic.php?f=17&t=153624

What do you think the effect will be on 2013 hols? Is it safe to book now, should I avoid completely or should I wait to see how things pan out?

post merged with current thread

yasus
wizard

We have already booked for next year. If Greece leaves the Euro then its value is likely to increase there so I will be able to buy more Mythos beer in the Symi Rainbow bar.

so what are members' latest feelings on this now that the elections have taken place? I see the rate's been hovering between 1.23 and 1.245 over the last week or so. In light of the results do you think the exchange rate will improve, get worse or stay about the same.

I bought half my spends a couple of weeks ago when the rate was 1.24 at the time but need to buy the rest. I have another 7 weeks to go.

i still think it will settle around 1.20 unless we devalue again [quantative easing]

thanks Wiz. I'm sitting back and watching how it goes for the next few days

If Greece leaves the Euro, the 'new' currency will float as it did back in the Drachma days. If the UK does well, it means cheaper hols in the future; not necessarily now!
In some places, I have found Greece cheaper last year than a few years ago, but not everywhere; but not if you are going though a UK travel agent. If cheapest prices matter, choose which island to visit with that in mind; most certainly some are cheaper than others; recommend Naxos.