BY REDEFINING THEIR STRATEGIES AND REVAMPING THE OFFERINGS, THEY ARE DETERMINED TO EXCEL.

“People in our industry believe that hospitality can become the driving force to help the country’s economy out of its present state,” said Manolis Manousos, vice chairman, Cyan Group of Hotels.

However, as he explained, the industry has found itself amidst a tax tornado, the effects of which are reflected on business results.

“[Occupancy-wise] our company is expected to close the season with a growth of four to five percent compared to 2015, but unfortunately [it is] much lower as far as money is concerned […] and to be honest, we are not sure how and when this tornado is going to end,” he admitted.

Similar concerns were raised by Markos Chaidemenos, managing director, Canaves Oia, Luxury Resorts, Santorini, who noted that had business not been growing year-on-year, the company would not have been able to cope.

“The problem is that the taxes are very high, there are a lot of indirect taxes as well as the typical ones which increase annually. You cannot plan because every month there is a new legislation with new taxes,” he said.

This unpredictability naturally hampers any forward-looking sales efforts.

“It creates a big problem for the normal operations of our properties and especially for the contracting for [2017], and it stops our early sales for the next season which show the trends for next year,” said Christos Katsigiannis, sales and marketing manager, Aeolos Beach Resort and Kontokali Bay Resort & Spa.

Vasia Theochari, sales and reservations manager, Rocabella Mykonos Hotel, also admitted that her team had to change pricing strategies.

“We are uncertain with the policy we have to follow for 2017, although we have already received requests,” she said.

As a result, reservations are increasingly made with a shorter notice, and at St Nicolas Bay Resort Hotel & Villas this is anywhere between five and 25 days.

“This is great to fill unsold rooms at short notice, but a bit difficult for planning ahead,” said Costas Zarbalas, general manager, St Nicolas Bay Resort Hotel & Villas.

To make things even harder, new taxes are now being considered, such as the hotel overnight tax which had been postponed to 2018, as Kalia Konstantinidou, director of sales and marketing, Mystique, a Luxury Collection Hotel and Vedema, a Luxury Collection Resort, explained.

“We are trying to absorb parts of the tax increases every time but are afraid that if this situation continues, at some point it will become impossible for our business, and for the Greek tourism in general, to operate at a profit,” she expressed.

Looking at the bigger picture Eleftherios Boutsioukis, chairman, AEGEON Hotels, warned that new such increases are a disadvantage to the industry.

Yet, looking on the bright side, Boutsioukis noticed, “All the difficulties in Greece made us better, more competitive, and had guided us to find new markets with new guests.”

In the challenging Greece of today, replacing lost markets with new ones is a top priority.
Stella Sidera, hotel manager, Aristi Mountain Resort & Villas, shared that a focus on foreign markets helped to compensate for losses, with one of the top performing international markets being the UK.

Zarbalas was quick to notice the opportunities presented by the weakened tourism allure of Turkey and North Africa, and this regional instability is one of the factors that Alex Marshall, owner, Spirit of the Knights Boutique Hotel, believes is behind the appeal of the Greece.

Yet, hoteliers acknowledge that the looming global threats can ultimately hamper tourism even in Greece.

“The fear [spread after various events and] a horrible atmosphere has been created within Europe, which pauses most holiday planners from planning,” said Sophie Vrind, general manager, Anemi Hotels.

Konstantinidou added, “The start of the year was rather slow […]. Potential and existing clients were quite shocked and discouraged, or even reluctant to travel.”

As for the rest of the year, feelings are mixed.

Based on reservation forecasts, the management at Blue Lagoon Group expects this touristic season to exceed 2015’s figures.

“Halkidiki in general is a very popular destination [...] and attracts tourists from all over Europe,” said Michalis Hadjiandreou, commercial director, Blue Lagoon Group.

Similarly optimistic is Fotis Kokotos, director of development, Elounda SA Hotels & Resorts, who expects the company’s Cretan resorts to record a turnover up to 15 percent higher than that of 2015.

“This optimistic outlook is bourne by current booking trends, where we have already confirmed 67 percent of the total annual 2015 bookings,” he revealed.

On the other hand, there are others who are forecasting a weaker performance.

Marshall revealed that reservations are down by a fifth at the Rhodes-based boutique property, and cautious estimates were also reported by the Santorini-based Michael Vardaros, hotel manager, Kapari Natural Resort, who said that the expectations for the current season are definitely less optimistic than in 2015.

Yet, from room renovations and new facilities to staff trainings and fresh guest entertainment concepts – the Greek hotel market is peppered with novelties.
In Corfu, Aeolos Beach Resort and Kontokali Bay Resort & Spa have emerged after extensive three- and four-year multimillion-euro refurbishment projects and equally impressive were the developments at Elounda SA Hotels & Resorts, as Kokotos revealed.

“Elounda remains at the cutting edge of Greek travel and tourism by constantly improving and innovating,” said Kokotos.

For business travellers to the country’s capital, Novotel Athenes boasts recently renovated meeting rooms as well as a remodelled restaurant, as Evripides Tzikas, hotel general manager, Novotel Athenes, revealed.

Yet, despite their individual efforts and perseverance, the industry is ailing for government support in order to remain competitive.

“We are afraid that if Greek tourism as a whole does not receive the state support that it needs and is entitled to as one of the most – if not the most – lucrative business sectors of Greece, businesses, in turn, will not be in a position to support the Greek economy,” warned Konstantinidou