Greek Tourism - UNCOVERED

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Greek
Tourism
uncovered
2014
To build a tourism strategy that lasts and that works for all, you have
to be realistic in analysing what works and what doesn’t. In the first
of this ‘UNCOVERED’ series of reports, experts at TOPOSOPHY share
their views on the tourism resurgence in Greece and the top priorities
for government and business in Greece today.
Cruise lines are queuing up to bring visitors to Greek shores, airlines
of all colours and origins are returning to Greek airports and hotels
are yet again filling with guests eager to enjoy Greek hospitality. But
after some difficult years, is the picture really this rosy? A closer look
reveals a range of concerns as big and small players across Greece
struggle to keep up with their European competitors and understand
how to capitalise on growth from the emerging markets.
Discover TOPOSOPHY’s take on the current state of Greek Tourism
in this candid report that aims to provide much food for thought to
tourism industry professionals in Greece and beyond.
Team of Contributors
Dr. Pantazis Pastras | Senior Research Analyst
Manolis Psarros | Managing Director
Peter Jordan | Senior Tourism Analyst

INTRODUCTION
A COUNTRY TO
TRANSITION WITH A
TOURISM SECTOR IN
PROGRESSION
This report substantiates the common perception of tourism in Greece as a driv-ing
force of the national economy, but one which has not yet been fully integrat-ed
into the country’s development agenda and priorities. To verify this oxymoron,
the report addresses the most recent data related to the sector’s transition from
years of stagnation to a period of unprecedented growth. Since the beginning of
the crisis at the end of 2008, both the country and the tourism sector have expe-rienced
significant pressures caused by domestic unrest. The limited availability
of public funds undermined the foundations of the welfare state, with policies
and programmes focused on urban regeneration in particular being put on hold.
With overnights and hotel occupancies falling sharply in many Greek destina-tions
in 2010 and 2012 as a result of the country’s image being affected by nega-tive
media coverage in major source markets, the sovereign debt crisis exposed
the vulnerabilities of the tourism sector and jeopardised Greece’s identity as a
hospitable destination for foreign visitors. Another consequence of the crisis was
that the competence of the public and the private sector to deal effectively with
domestic challenges and growing international competition was questioned in
an aggressive manner in the light of escalating political tension.
1

In the Greek case, learning that the viability of tourism at each place is largely
attached to the prospect of socio-political stability and the well-being of local
communities came at a high price for several insular, coastal and urban destina-tions.
The positive news is that Greek tourism seems to favour a die-hard approach
to recovery. Since all available indicators about the performance of Greek tour-ism
in 2013 and the first nine months of 2014 have exhibited signs of a remark-able
comeback, it is no surprise that optimism is firmly back nowadays among
relevant stakeholder groups and organisations. Major reforms along with struc-tural
changes have also contributed to redefining the institutional framework of
tourism planning and development at the national level. Nevertheless, there is
much evidence to suggest Greek tourism in its current condition still falls short
of a holistic approach to destination development and management and lacks a
balanced distribution of funds between offline and online marketing practices.
In this context, this report explores whether in some sense, Greek tourism has
already gone too far according to its performance over the last year and a half.
Experts within Toposophy believe, however, that this kind of question is intrinsi-cally
flawed. The ups and downs of Greek tourism are not necessarily a spec-tacular
phenomenon considering the uncertainty surrounding the evolution of
tourism destinations worldwide under the shadow of changing political and eco-nomic
conditions.
A more important matter is how Greek tourism can improve the capacity to adapt
to contemporary trends and quality standards, Hence, this report is focused on
scrutinising the underlying dynamics of the comeback of Greek tourism along
with other achievements that Greek tourism can celebrate in the future, on the
condition that a strategic element will become more explicit in policy prepara-tion,
implementation and evaluation.
MANOLIS PSARROS
Managing Director
2

Facts and Figures
- Thriving is the sequel to staying alive
- A pillar of the Greek economy
- Greece in the competitive arena
- How can it be the beginning of a new era for Greek tourism?
The Latent Qualities
of Greek Tourism
- Connecting the numerous dots
- ‘A guest never forgets the host who had treated him kindly’
- A land of experiences
- To develop (and how to develop) or not to develop tourism?
- Minding the marketing gap between the public and the private sector
Greek Tourism
& Global Trends to Take on Board
- Market Groups and Consumption Trends
- Issues of Integrated Destination Management
- The Evolving Nature of the Tourist Experience
Seven Steps
to Boosting Greek Tourism
- Consolidate a strategic approach to tourism development
- Make progress with massive legal reforms
- Upgrade Infrastructure and Promote Environmental Protection
- Bridge the digital divide
- Shape tourism product differentiation
- Be smart and embrace change at the local level
- Invest in Human Capital
Chapter 1
Chapter 2
Chapter 3
Chapter 4
6
7
19
21
23
28
30
33
38
43
52
60
70
72
73
74
75
76
77
content

CHAPTER 1 | FACTS AND FIGURES
This report is informed by the favourable position which the tour-ism
sector enjoys in Greek society both as a key stimulus of the na-tional
economy and a major area of local politics. On these grounds,
understanding the present and future of Greek tourism is the out-come
of:
• Summing up the facts and figures of recent growth (1st
Chapter)
• Shedding light on themes and issues that will shape the
evolution of the sector in following years (2nd Chapter)
• Asking what a national response should be to the emergence of
contemporary trends at the global level (3rd Chapter)
• Discussing the need for actions by the public and private
sector at all stages of tourism planning that will equip the
operating environment of Greek tourism with a competitive
edge (4th Chapter)
5

Thriving is the sequel
to staying alive
UK VISITORS RETURN TO GRECE
ASSOCIATION OF BRITISH TRAVEL AGENTS
Crete, Corfu, Rhodes
and Zante are the
most popular
Greek islands
(travel trends report 2014)
Greece is
once again very firmly
on the tourist map
and is also much
more affordable.
Enjoy luxury
and spectacular
at the volcanic island
of Santorini
The revival of Greek tourism has coincided with the
gradual fading of problematic references to the sta-tus
and transformation of the socio-political environ-ment,
as the country’s finances began to gain impe-tus.
By the end of 2013, the tourism sector effectively
reflected Greece’s die-hard approach to recovery. Al-though
domestic tourism performed well below the
average as a consequence of the shrinking buying
power of Greek citizens, trends of impressive growth
in inbound tourism placed the country as one of the
best performing destinations worldwide in 2013. It
consolidated its position in the Mediterranean mar-ket,
and drew international attention in the midst of
the crisis.
Luxury
accommodation
options have
sprung up recently
Truly relax
and recharge
your batteries
in the Sporades Islands
New offers off the beaten
track along with boutique
options give a taste
of authentic Greece.
Check the green
and thickly wooded
islands of Thassos
and Ikaria
6

A new record figure of approximately 18
million international tourist arrivals along
with an enhanced pattern of seasonality
Another record figure of more than
12 billion international tourism
receipts including cruise passengers
A notable increase of tourists
arriving to Greece by crossing
the country’s northern
and north-eastern borders
Greece is the third most popular
cruise destination in Europe
7

A re-confirmation of positive effects
due to the lifting of restrictions
(Cabotage) for cruise vessels to embark
and disembark passengers at Greek ports
A highly concentrated
allocation of tourism traffic
Slight decreases of the average length of
stay and the average spend on each trip
partially due to the increasing proportion
of cruise passengers among international
tourists - A relief because of the timid
come-back of domestic tourism
A consensus
on the driving force
of the Russian market
8

A re-appreciation of the spending power
of long-haul markets
An expected return of the usual suspects
of inbound tourism
9

An enthusiasm about the dynamics of
emerging markets from both within
and outside the European Union:
10

A rather high rate of growth for international tourist arrivals
at the Kalamata Airport, although Greek islands
were also effective in terms of increasing
their traffic among peripheral destinations.
11

Signs of a reappearance of Athens in the map
of European city tourism mainly due to the annual performance
of long-haul and emerging markets at the Athens International Airport.
Evidence of the growing appeal of Thessaloniki
as Greece’s second urban destination to markets
from Eastern Europe and North-Eastern Mediterranean.
12

Latest data as well as the attention of international media including articles by the Irish Independent1, The
FVW Media Group2, the Huffington Post3, the Die Zeit4, and The Guardian5 suggests the above trends were
simply the warm-up before the country kicks off another year of success because:
The Greek
comeback has gained
international
media attention
13

The growth of international tourist arrivals and expenditure inside Greece from January to August 2014
along with visits to archaeological sites and museums from January to June 2014 has been significantly
higher than last year, though it is also observed a loss of €57 on the average spend for each trip.
Messages from traditional markets are particularly positive.
Evidence from the first seven months of 2014 points out the dynamics of the UK and the US market
while French tourists are including Greece among their favourite summer holiday destinations.
It is also a fact, however,that the German market has shown so far signs of stagnation
14

Italy is another marker illustrating growth potential in 2014 given
the high increases of seats in scheduled flights
from the airports of Rome and Milan to Greece.
Concerning the spread of international tourist arrivals from January to September among
airports in Greece - Kalamata, Mykonos, Athens and Santorini lead the way in growth
from 2013 to 2014 with the performance of the majority of peripheral destinations
leaning toward seasonal records during out of season months.
15

Indications also reconfirm the status of Russian tour-ists
as the third major market of inbound tourism in
Greece. However, there are notable concerns on the
short- and mid-term impact of the Ukraine conflict on
the behavior of both Russian and Ukrainian tourists,
which together account for 2.8 million seats in sched-uled
flights to Greece in 2014. Towards the end of the
first semester, the Crimean crisis had slowed down
the impressive growth observed in the first quarter of
2014 including almost double figures of Russian tour-ist
arrivals and expenditure as compared to the first
quarter of 2013. In the last few months, Russian out-bound
tourism in general did not escape unscathed
from the string of bankruptcies among Russian travel
agencies. This explains why the arrivals of Russian
tourists in Greece have remained unchanged (0%
growth) in the first eight months of 2014, with their
expenditure demonstrating for a first time in recent
years signs of decline (-9%).
According to a statement of the Athens-Attica & Argo-saronic
Hotel Association at the end of last Septem-ber,
from January to August of 2014 the occupancy
rates in the wider area of Athens grew by 22.3% com-pared
to the same period in 2013 to reach the level
of 72.1%, while the average rate for a double room
climbed almost 5 Euros to 85.70 Euros and the aver-age
revenue per available room increased 28.3% to
reach 61.80 Euros.
16

The restructured network of flights of Aegean Airlines and the growing penetration of major
players such as Ryanair, easyJet, Air Berlin, SAS, and British Airways into the Greek market
are expected to shape growth potential throughout 2014 and 2015.
There are strong links to suggest that the presence
of low-cost carriers in Greece has stimulated the
growth potential of domestic tourism in the midst
of economic crisis as well as affecting the pricing
of hospitality and other services. On the one hand,
industry groups seem to foresee the gradual re-covery
of domestic tourism insofar as unpredict-able
events will not question political stability. On
the other hand, both hotel associations and me-ta-
search engines such as Trivago have lately re-ported
the provision of cheap hotel rates as a key
advantage of Greek destinations against their Med-iterranean
competitors.
TripAdvisor included Athens among its Top 25 tourism destinations in Europe as well as Naxos, Milos,
Santorini, Kefalonia and Paros among its Top 10 Islands in Europe for 2014. Athens also captured
the 36th position in the Trivago Top 100 Destination Ranking, which is based
on customer reviews of hotel services, climbing 14 positions compared to 2013.
Athens along with
Naxos, Milos, Santorini, Kefalonia
and Paros among Tripadvisor’s
top destinations in 2014
Sources: Bank of Greece, Hellenic Statistical Authority, European Cruise Council, Hellenic Ports Association, Association of Greek Tour-ism
Enterprises, Athens International Airport, Attica-Athens & Argosaronic Hotels Association, Thessaloniki Hotels Association
17

A pillar
of the Greek economy
Widespread consensus on the positive effects on the Greek economy and local development is the reason why
the tourism sector has always attracted positive comments by state officials despite occasional misfortunes.
Whilst the country was fighting with the consequences of austerity measures and high levels of unemployment,
travel and tourism in Greece totally contributed an annual average of 16.3% of Gross Domestic Product and 18.2%
of employment from 2011 to 20136. In most cases, the particular contribution
has been proportionately higher than the contribution of travel and
tourism in competitive countries such as Spain, Turkey and Italy,
and only lower than respective contribution in the rather
small economies of Malta and Cyprus.
In this context, the Prime Minister, Mr. Antonis Sa-maras,
recently forecasted that tourism is going to
add 16,5 billion Euros and 225 thousand job positions
(30% and 29% of future GDP and employment growth)
between 2015 to 2021 as part of the government’s
development plan. To understand the importance
of this assumption, it is sufficient to consider that it is
critical that the ongoing performance of Greek tour-ism
continues in order to reassure both the govern-ment
and the country’s lenders including Eurozone
countries and the International Monetary Fund that
2014 will be the first year to show overall growth for
the Greek economy since the beginning of crisis.
Nevertheless, a strategic analysis carried out in sum-mer7
argued that the expected recovery in Greek
economy along with a significant impact on either
the balance of payments or employment in the short
to medium-term is unlikely to come about solely
through the contribution of tourism. Concerning the
creation of new jobs, it appears that signs of restruc-turing
in the Greek tourism sector are believed to im-ply
higher productivity and thus a smaller potential
for absorbing unemployment.
The contribution
of tourism
to the country’s GDP
is proportionately higher
that in competitive
countries.
Sources: kapos.eu
18

Greece
in the competitive arena
GRECE iTALY TURKEY
In performing a current analysis of Greek tourism it is impossible to ignore the fact that the positive results of the
recent past have not occurred in a vacuum. In a period of consistent growth for global tourism from 2010 on-wards,
arrivals in European countries on the Mediterranean including Turkey have gained in momentum. Despite
the rather ugly acronym ‘PIGS’ being used to group some of these together, negative media exposure did not
prevent them from maintaining or expanding their market shares and taking advantage of the unrest first caused
by the events of the Arab Spring and afterwards by the lack of political stability in the whole of the Middle East.
Along with Greece,
the majority of destinations
in Northern Mediterranean
saw growth in 2013
19

The Post Office in the United Kingdom9 has recent-lay
corroborated such concerns in the case of Greek
destinations. Evidence suggests that the cost for Brit-ish
tourists to purchase a cup of coffee, a glass of
wine, and a 3-course evening meal for 2 with a bottle
of wine at a local tourist-class restaurant during their
2014 holidays in Corfu and Crete will be higher than in
most competitive resorts in Portugal, Spain and Tur-key,
though lower than in Mallorca and the majority of
Italian destinations.
Public authorities and the private sector in Greece need to monitor and evaluate carefully the fact that with the
exceptions of Cyprus and Albania every Northern Mediterranean destination experienced growth in international
tourist arrivals and industry earnings in 20138. Of course another big issue for the future is whether countries and
destinations in the Northern Mediterranean will continue to maintain their position when, at some future time,
the transition to more democratic regimes helps Egypt and others to bounce back, regain their attractive images
and adopt a more competitive pricing policy.
20

How can it be
the beginning of a new era
for Greek tourism?
The presentation of facts and figures has illustrated
the current potential for tourism to strengthen its
position as a reliable driver of economic growth in
Greece due to the exposure of Greek destinations
to emerging markets and the growing awareness
inside the country of the sector’s importance for
economic growth. That is well and good if it is what
it takes for Greek economy to recover in the short-term.
However, there is also much evidence to argue
that a systematic approach to tourism development
is required to ensure the involvement of stakeholder
groups will deliver sustained benefits in subsequent
years. This debate transcends the scope of how the
tourism sector has undergone a prolonged period of
financial pressures because of structural problems
such as Greece’s crippling debt, the lack of credit,
and macro-economic imbalances.
Taking on this systematic approach involves tack-ling
issues which are related both to the year-on-year
downward trend that Greece has experienced
in the «Country Brand Index» of Future Brand and to
the loss of three positions in the «Travel and Tour-ism
Competitiveness Index» of the World Economic
Forum. In the latter case, the resilience Greece has
shown in terms of remaining within the top 25 desti-nations
in the world in airport infrastructure and cul-tural
heritage covers areas in which the continual de-livery
of service excellence must be a priority.
The penetration of tourism into various sectors of
the Greek economy is indicative of its capacity to
boost the country’s business environment. In June
2014, Greece ranked 26th among the 28 EU mem-ber
states10 but the ongoing growth of inbound tour-ism
coincided in the beginning of September with
the country’s achievement to climb ten places in the
Global Competitiveness Index11.
Airport
infrastructure
and cultural heritage
should be priorities
for the achievement
of service
excellence
21

It is equally important to bear in mind that tourism development cannot be a panacea for economic develop-ment
in Greece, and that other sectors must also pull their weight. The long-running debate on the creation of
bachelor degree programmes in Greek universities as well as the uncertainty that has followed the abolition of
the Organisation of Tourism Education and Training is an example of this. E-commerce is another proper exam-ple,
with e-tourism still being in its infancy in Greece despite the tourism sector’s significance for the national
economy. There is evidence that the low percentage of households with internet access is well below the EU
average affecting the national demand for to e-commerce services. Nevertheless, there may be a bright future
for the market of e-tourism in Greece and its potential contribution to GDP and employment growth, provided
that consumer concerns over the safety of online transactions are addressed and accommodated properly12.
On these grounds, the next chapter focuses more
on why Greek destinations are lacking a competi-tive
edge and what initiatives are necessary to en-able
the tourism sector improve its appeal to both
traditional and emerging markets, embrace institu-tional
modernisation, attract investment funds and
put forward innovative practices with the prospect
of enhancing the quality of hospitality and other ser-vices.
Tourism
development cannot
be a panacea for economic
development
22

The
Latent
Qualities
of Greek
Tourism

CHAPTER 2 | THE LATENT QUALITIES OF GREK TOURISM
Though much analysis suggests that economic issues tend to dominate
the agenda of tourism development at the initial stages, short-sighted-ness
can also occasionally be the reason for missing opportunities to
generate both revenues and social gains in the long-term. As a mosaic of
attractive sites and hospitable people, Greece has written its own history
of tourism in the last five decades that has included triumphs and defeats.
When asked if the country has already showed off the best of what it
really has to offer, however, experts in Toposophy answer in the nega-tive.
Hence, this section raises several points of interest and discusses
the various ways in which people inside and outside the sector need to
engage in institutional and managerial innovation in order to set in motion
the latent qualities of Greek tourism and see the benefits for both tourists
and themselves.
24

Connecting
the numerous dots
Connectivity has always been a major issue in the agenda of Greek tourism due to the spatial arrangement of
resorts along the country’s coastal and insular areas, and the recent boost of inbound tourism has brought back
to the surface a series of concerns from the destination’s perspective. Indeed, the ongoing debates revolve
around issues such as:
• The improvement of links between Greece and key localities from both traditional and emerging markets.
• The prospect of an appropriate balance between sea and air transportation.
• The capacity of available infrastructure to manage effectively the growing flows of tourists.
• The measures required to facilitate the flows of cruise passengers and provide them with a memorable
experience while touring in Greece.
25

First, optimism is reasonable because new and returning airline carriers ask for access to Greece’s airports. To a
certain extent, that is a repercussion of the acquisition of Olympic Air by Aegean Airlines in late 2013. While the
latter has restructured since the beginning of 2014 the network of flights through 8 bases in Greece and 47 desti-nations
mainly in European, Mediterranean and Middle East markets, big names of scheduled flights have either
extended their itineraries throughout Greece (e.g. British Airways, Lufthansa and SAS Airlines) or reappeared at
the Athens International Airport (e.g. Delta Airlines, Etihad Airways, and Singapore Airlines), contributing also to
the re-establishment of connections with long-haul markets.
New and returning airline
carriers ask for access
to Greece’s airports
In the meantime, there has also been an impressive penetration of low-cost carriers, which are estimated to con-nect
Athens with 35 destinations in summer 2014 as opposed to 25 destinations in summer 2013 (40% growth).
Under the leadership of Ryanair, Air Berlin, and easyJet, low-cost carriers are also expected to lower the depend-ency
of insular destinations on charter flights in high season.
The second area of debate focuses on the current state
of the ferry industry. The recent revival of Greek tour-ism
has only contributed to stabilising passenger traffic
in 2013. That is anything but a satisfactory record given
that from to 2010 to 2013 passengers in ferry traffic de-creased
by more than 20%, a clear repercussion of pres-sures
identified in domestic tourism. Besides the factor
of scheduled airlines, market share competition may in-crease
in the near future according to rough estimates
that 120 water airports will be operating in Greece by
the end of 2015, adding seaplanes as another means of
travel among domestic destinations of all kinds.
26

Third, it is important to keep in mind that the more tourists decide to visit Greece the more the capacity of avail-able
infrastructure is going to be tested. In calculating that the tourism traffic in Greece in 2014 will reach its peak
on 2nd August through the arrival of 760 international flights including 149,000 seats, the Association of Greek
Tourism Enterprises is only touching the tip of the iceberg13. This issue applies both to air and sea transportation.
The higher demand for flight slots this year resembles similar challenges to those faced by many ports of differ-ent
scales, which have recently attracted the attention of international cruise lines and their vessels.
Airport and
port infrastructure
improvement is a major
issue for Greek
tourism
27

A guest
never forgets the host
who had treated him kindly
(Homer, Odyssey)
Although people in Greece have every reason to be proud of Xenios Zeus (the ancient Greek God of hospitality)
and Homer’s references to themes of hospitality, the analysis and implementation of the concept of ‘Philoxenia’
must be consistent with the standards of each era. Experts within Toposophy have little doubt that adaptability
is a more inclusive term for destinations with high goals because:
• It captures the very essence of ‘Philoxenia’ as a matter of taking care of all the necessities for a pleasant stay.
• It incorporates the various ways in which tourism stakeholders need to be both creative and effective in order
to approach potential visitors and enhance their experience both before and after the actual trip.
Jupiter and Mercurius in the House of Philemon and Baucis (1630–33) by the workshop of Rubens
28

In the first case, experience from Greece shows how
issues such as the working hours of cultural attrac-tions
and the trend of ‘Open Sundays’ transcend the
scope of specific interests or political disputes in-side
the country. As integral elements of the tourist
experience, managing those issues requires signifi-cant
effort by different stakeholders in understanding
the needs of visitors and meeting their expectations
through innovative practices and mutual compromis-es
that will lead to mutual benefits.
Pricing is another tricky area in this sense. It shows
how short-sightedness in tourism derives from the
unwillingness of tourism stakeholders to consider
the merits of maintaining prices at a competitive level
during events of international fame, aiming at improv-ing
the image of both individual businesses and the
destination through positive media coverage as op-posed
to maximising revenues only in the short-term.
In the second case, experience from Greece also sug-gests
there is plenty of catching up to do with the con-temporary
practices of destination marketing. On the
one hand, destinations face the challenge of extend-ing
and capturing the attention of their B2B contacts.
The aim should be to target specific segments of the
international tourism market and encourage tourism
professionals worldwide to discover business opportu-nities
at each locality. For instance, the Travel Trade Ath-ens
event, organised by the Athens Development and
Destination Management Company in 2013 and 2014,
provided a great insight into how a variety of activities
can be combined with the organisation of business ap-pointments
and promote in a thematic and integrated
manner both well-known and less familiar aspects of a
destination.
On the other hand, destinations need to understand the power of word of mouth boosted through social media. The
Region of Peloponnese is one example of authorities at the highest level of non-government administration which
extended their digital presence as tourism destinations. Under the slogan “Mythical Peloponnese”, the region imple-mented
an internet campaign of its tourism products and destinations but also paid special attention to the mainte-nance
and update of social media accounts in Facebook, Twitter and YouTube. Crucially, the most encouraging sign
is that there are plans for the continuation of the project in the programming period 2014-2020.
29

A land
of experiences
Along with efforts to enhance destination adaptability to contemporary trends and match market targets with
adequate B2B and B2C marketing strategies, tourism stakeholders are recommended to embrace the introduc-tion
and diffusion of new ideas now that the sovereign debt crisis seems to be de-escalating. To redefine certain
aspects of destination identity, it is valuable to see the country’s return to economic stability through the lens of
a fresh approach to the integrated management and promotion of Greece’s beauties and attractions. There are
two key points which make tourism rebranding in the case of Greece worth in considering:
• the decreasing shares of travellers who visited the country in recent years and spent their money for
business reasons.
• The behavioural norms of new generations of travellers with information and communication technologies
being embedded in everyday life.
The introduction and diffusion
of new ideas is necessary now
that the sovereign debt crisis
seems to be de-escalating
30

Shares of Tourism Receipts per Purpose of Visit (Source: Bank of Greece)
The first point corroborates more or less the assumption that whereas it takes time to build something strong,
it takes a few moments to see it being dismantled as well as a lot of effort to rebuild it. Data provided by the
International Congress and Convention Association14 demonstrates that what had been achieved in the do-mestic
market from the Olympic Games of 2004 onwards, started to fall apart when the crisis began. Greece
and Athens attracted 55 and 35 fewer international meetings in 2012 than in 2008; a direct repercussion of
challenges associated with the escalation of the economic crisis from the end of 2008 to 2010 when consider-ing
that international associations start making plans about their conferences a few years before the actual
dates of the venue.
At the same time, this tough period has many interesting lessons for those who wish to come up with ideas
and initiatives that will capitalize on Greece’s positive media coverage in recent months. Particularly for public
authorities, much of this knowledge derives from the targeted marketing efforts of the Athens Convention
and Visitors Bureau under the Athens Development and Destination Management Agency, which managed to
maintain a series of influential contacts in the international market of business tourism and eventually contrib-uted
to the organisation of major events such as the XXIII World Congress of Philosophy in August 2013.
Parthenon temple on the Athenian Acropolis, Greece
31

A re-assessment of approaches related to the development
of alternative forms of tourism is also necessary
The second point derives from an
assessment of approaches related
to the development of alternative
forms of tourism such as cultural
tourism, rural tourism, urban tour-ism,
gastronomical tourism, etc. In
the 1990s, Mediterranean destina-tions
welcomed alternative forms
of tourism as a slogan, which in-corporated
both the burgeoning
debate of sustainable tourism and
growing concerns over the im-pact
of mass tourism on the envi-ronment
and local communities.
Nowadays, however, another big
debate is whether this slogan has
evolved and become something
tangible or if it has actually ques-tioned
the domination of mass
tourism all over the Mediterranean.
Despite certain exceptions to the
rule including the rise of urban ar-eas
as city-break destinations, the
Greek experience has shown how
good ideas often tend not to live
up to the hype. Often, the problem
is the absence of systematic and
consistent efforts to design and
implement a development frame-work
together with proper quality
standards, sufficient investments,
and adequate marketing strate-gies.
Any further reference to the po-tential
of upgrading maritime tour-ism
in Greece carries the risk of
ignoring the lack of progress on
the construction of contemporary
marinas compared to develop-ments
in competitor countries
such as Turkey and Croatia. Like-wise,
concerns arise in the case
of medical tourism, which is often
introduced as a fresh element that
remains undervalued due to gov-ernment
inertia, although the ways
in which medical centres offering
specialized health services could
be combined with other activities
and infrastructure in order to cre-ate
clusters for the development
of medical tourism in specific areas
have been largely underexplored.
32

The world of tourism
development is,
by definition,
one of trade-offs
To develop
(and how to develop)
or not to develop tourism?
Paraphrasing the classic Shakespearean dilemma is one way to illustrate that finding a perfect balance between
aspirations for economic benefits and concerns about environmental and social issues has rarely been an op-tion
for tourism planners. Another way is to explore if the world of tourism development is, by definition, one of
trade-offs.
That is a world where consensus building is a challenging and possibly controversial process, which requires
both valid estimates of future impacts and commitment to monitoring the actual results of tourism development.
In the case of Greece such an investigation is more than useful in the current climate, because the government
is just as eager to witness more investments inside the country as environmental organisations and local com-munities
are sceptical of their long-term effects.
33

According to several examples, a first key point for tourism planning is that decision-making requires constant
learning from Greece’s recent past along with international experience:
• Although the enhancement and enrichment of the traditional model of ‘sun and sea’ tourism through ‘spe-cial
forms’ of tourism is among policy objectives in the programming period 2014-2020, the development of
conference, medical, cultural, maritime and city tourism under the label ‘alternative forms’ was encouraged
in the past as a strategy to counterbalance the blueprint of mass tourism in Greece. The current expres-sion
demonstrates a better understanding of the dynamics of the ‘sun and sea’ model, but it is a matter of
continuing investigation whether the development of these forms of tourism will be supported by adequate
marketing strategies, necessary changes in legislation, and greater attention to designing and selling pack-ages
of thematic experiences.
• More than three decades of experience in the management of structural funds and the provision of in-vestment
incentives are important to guide future policy making. In the programming period 2014-2020,
the challenge lies in deciding what is deemed an appropriate balance of resources required for large scale
investments and small and medium enterprises in different areas.
THE EUROPEAN PART
OF THE MEDITERANEAN
IS TO BE ONE OF THE MOST
AFECTED BY CLIMATE CHANGE
• The country cannot underestimate research findings about the effects of climate change on the tourism
sector as presented in recent studies by the Bank of Greece15 and the University of Cambridge16. Among
regions, estimates indicate that the European part of the Mediterranean is to be one of the most affected by
climate change conditions in the years to come. That is a factor to take seriously in tourism planning, at least
from now on, because increasing temperatures are likely to trigger additional phenomena such as frequent
heat waves and droughts, wildfires, water stress and the loss of biodiversity.
34

Other examples clarify why consistency is a second key point for tourism planning in relation to investment
growth and sustainable development. In recent years, major reforms were introduced as part of the govern-ment‘
s aspiration to reduce bureaucracy, lift institutional obstacles and restrictions, improve the business envi-ronment
for investments, and meet the respective guidelines of international agencies such as the Organisation
for Economic Cooperation and Development17 . One example in the case of tourism is regulations for the pri-vatisation
of properties owned by the Hellenic Republic Asset Development Fund including the hotel complex
of Astir Vouliagmenis, the old Airport of Hellinikon, and many other land sites and buildings all over Greece. A
second example is the extension of conditions and cases for the establishment of Integrated Tourism Develop-ment
Areas along with the simplification of procedures for the operation of hotels (known in Greece as Complex
Tourist Accommodations) including infrastructure for specialised forms of tourism.
It is important that the contribution of these and other measures should be appreciated because:
• They have revived the interest of domestic and international hedge funds, which have already made
progress with various projects in areas such as Crete, Chalkidiki, and the Ionian Islands.
• They have transformed the institutional framework of tourism development in Greece, which is also
witnessing the progress of additional private initiatives on a medium and large scale (e.g. increasing
number of owners who obtain licenses from the National Tourism Organisation in order to rent their
properties and villas for holiday purposes, the creation of the Stavros Niarchos Foundation Cultural
Centre at the position of the old hippodrome of Athens, etc.).
Major
government
reforms have attracted
the interest
of investors
35

However, consistency mainly varies according to the horizon for implementation in tourism policy. From a busi-ness
perspective, preserving stability in the tax system is a key priority which is still pending in Greece. Another
issue is how often there are changes in trade-offs between economic development and environmental protec-tion
in considering differences between the first edition of the Special Framework for Land-Use Planning and
Sustainable Development of Tourism (Joint Ministerial Decision 24208/2009) and the recently updated version
(JMD 67659/2013).
It is unsurprising that some investors are left perplexed and calculating the cost of missed opportunities the
same way that local communities express their opposition when major changes are suddenly introduced in
legislation about protected sites «Natura» and the seashore. Hence, the National Bank of Greece18 is explicit in
arguing that rather than facilitating investments by bypassing most of the legal and administrative obstacles it
is more important for Greece to resolve issues of land ownership by implementing a coherent national cadastre
and a pilot land exchange programme.
The above observation is critical in a wider context, because a third key point for tourism planning is innovation.
In fact, the following examples demonstrate why decision-making in tourism policy needs to take into account
the transformation of both the economy and society:
ΦοιFoinikodasos-Vai
GRECE HAS
TO RESOLVE ISUES
OF LAND OWNERSHIP
36

Greece and the Younger Generations of Travellers
• When focusing on the development of both geo-de-mographic
and thematic markets the tourism sector in
Greece has to comprehend the changing behavioural
trends in international travel. Particularly for those who
were born in the ‘80s and ‘90s, information and com-munication
technologies are an integral aspect of their
travel and tourist experience. The Generation Y or Mil-lennials
are passionate about personal autonomy and
flexibility. Seeking these qualities, they make the most
of social media and mobile devices while shifting in-stantly
from business to leisure, keeping in touch with
relatives and friends, and searching for authenticity,
customised services and value for money in their pur-chases.
As a result, the rapid pace of evolution chang-es
the rules of the game with both challenges and op-portunities
for tourism destinations.
Given that the United Nations World
Tourism Organisation19 recognised
visa facilitation as a means to stim-ulate
tourism growth worldwide,
Greece is obliged to examine all the
obstacles and opportunities of the
Schengen Area regulations and se-cure
an equally competitive position
among European countries which
keep an eye on prospering travellers
from emerging economies. In recent
years, there has been close coop-eration
over this subject between the
Ministry of Tourism and the Ministry
of Foreign Affairs. In January 2014, the
two ministers jointly announced that
the number of visas issued to Rus-sian
tourists visiting Greece in 2013
increased by 51.4%; the same figure
in the cases of tourists from Ukraine
and Turkey increased by 56.6% and
40.8% respectively. In the light of the
Ukrainian crisis, however, Greece has
possibly to learn from the approach
of Spain, whose General Consulate in
Russia has set in operation visa appli-cation
centres in more than 15 cities.
Assessment of Visa Policy
37

Minding the marketing gap
between the public
and the private sector
In the last decade, the institutional framework of tourism marketing in Greece has undergone numerous trans-formations,
often as a consequence of changes taking place at various levels of public administration. An obvi-ous
example is the involvement of the Ministry of Tourism itself, which was established in 2004, then merged
with the Ministry of Culture in 2009, and was finally re-established as an autonomous agency in 2012. That is a
sensitive case, because every change at the top also has effects on the role and work of the National Tourism
Organisation, which is now operating again under the Ministry of Tourism. In a less controversial example, the
devolution reform of Callicrates has broadened the scope of action in the field of tourism at the lower levels of
public administration. A few agencies have actually seized opportunities to duplicate a series of popular prac-tices
among destination management and marketing organisations at the international level.
But what seems to be a more im-portant
development as a whole
is a change of mindset in both
the public and the private sector.
Evidence suggests that tourism
stakeholders have started to ex-amine
more actively the prospect
of working together in common
marketing projects. At the national
level, the private sector and par-ticularly
the Association of Greek
Tourism Enterprises played in
2007 a pivotal role in pushing the
government to involve interna-tional
experts in both the prepa-ration
and implementation of
the strategic marketing plan for
Greek tourism. The products that
were identified during that pro-cess
have survived as concepts,
but the project also influenced
debates of coordination between
public administration levels and
partnership building. Pressures
and frustration caused by the
economic crisis and the under-performance
of Greek tourism
from 2009 to 2012 particularly
reinforced the debate of public-private
partnerships.
The institutional framework
of tourism marketing
in Greece has undergone
numerous transformations
38

In 2013, Greece saw the establishment of Marketing Greece as a non-profit, fully private organisation (formed
by the Association of Greek Tourism Enterprises, the Hellenic Chamber of Hotels, and the Hellenic Association
of Advertising-Communication Agencies) aimed at supporting the marketing of Greek tourism and governed by
a council whose members are key players of the Greek tourism sector. Rather than intervening in the country’s
tourism branding, which is a responsibility of the National Tourism Organisation and involves the web platform
Visit Greece, Marketing Greece launched the web platform Discover Greece with a focus on the promotion of
the country’s tourism products and experiences.
In the last two years, the emergence of this new agency coincided with the enactment of Laws 4179/2013 and
4254/2014, which expanded the Ministry’s duties in the development and control framework of tourism enter-prises
and initiated the restructuring of branches of the National Tourism Organisation located overseas. Along
with legislation passed in July 2014 the government seems to favour the engagement of tourism stakeholders in
Greece’s tourism promotion.
The current government
favours the engagement
of the private sector
in Greece’s tourism promotion
39

For the first time in the country’s history, the Law 4276/2014 introduced a framework for the approval of private
sponsorships on behalf of a council under the Minister of Tourism, while it also broadened the scope of joint ini-tiatives
between the National Tourism Organisation, other public authorities and tourism associations.
In the meantime, the restructuring of regional and local authorities has enabled since 2011 certain organisations
to maximise benefits from the use of internal resources and funds derived from the National Strategic Refer-ence
Framework. The Athens Convention and Visitors Bureau under the Athens Development and Destination
Management Agency is a representative case at the local level of a municipal organisation that adopts the inter-national
practices of destination management organisations including marketing campaigns, product develop-ment,
visitor information & services, travel trade events, community engagement projects and research activities.
For instance, the Athens Convention and Visitors Bureau in partnership with the National Tourism Organisation
were responsible for the staging of TBEX Europe in October 2014. This event has brought social media hype and
international fame to the capital city of Greece for a few days through the arrival of more than 800 travel bloggers
and writers, who had the opportunity to find out everything about the attractions and services of local tourism
industry, arguably bringing the city’s tourism offering to entirely new audiences as a result.
TBEX EUROPE 2014
HAS BROUGHT THE TOURISM
OFERING OF ATHENS
TO ENTIRELY NEW AUDIENCES
40

Greek
Tourism
& Global
Trends
to Take
on Board

CHAPTER 3 | Greek Tourism & Global Trends to Take on Board
Although the issues discussed in Chapter 2 tell a lot about the prospect
of strengthening the competitiveness of the Greek tourism sector, both
public authorities and the private sector are recommended to take into
account the consequences of a series of international trends. These
trends affect elements of supply and demand in a manner which shows
their capacity to set new standards for service delivery in tourism industry.
In this chapter, Toposophy experts identify these trends and pay atten-tion
to the ways they currently shape consumer behaviour, the priorities
of policy-making on behalf of destination authorities, and perceptions of
the products and services that compose the landscape of tourist experi-ences.
42

Market Groups
and Consumption Trends
• The plenitude of challenges and opportunities
associated with the volatility of emerging markets.
• The non-traditional interpretation of indulgency
of younger generations of travellers.
• The central role the internet plays in the daily
routine of travel habits.
The first group of ongoing trends focuses on the be-haviour
of tourists and identifies patterns of transfor-mation
under the influence of political events, grow-ing
spending patterns, changing demographics, and
the diffusion of information and communication tech-nologies,
whose analysis promotes the following les-sons
for the Greek tourism sector:
Greek tourism stakeholders
need to continuously
assess different drivers
of consumer behaviour
A key point is that Greek tourism stakeholders need to continuously assess different drivers of consumer behav-iour
from a micro to a macro level of analysis and identify clever ways that will help them upgrade and tailor their
products and services to meet the demands of both individuals and large groups of travellers.
43

The easy case
of attracting tourists from
emerging economies:
a midsummer night’s dream
Although the global financial crisis of 2008 along with the Eurozone crisis put the majority of developed countries
in a difficult position, European and long-haul markets of outbound tourism have contributed to the momentum
international tourism has regained since 2010. In the case of travellers from emerging economies, the big ques-tion
is not if the sources of temporary or persistent instability can have a permanent effect on the long-term
growth of international tourism, as estimated by the United Nations World Tourism Organisation, because the
desire and capacity to travel overseas is linked to the fast rise of the middle class in these countries. Rather, the
question centres on the challenge of dealing with the ups and downs of markets from emerging economies in
the short to medium-term.
In emerging economies,
the desire and capacity
to travel overseas
goes along with
the fast rise
of the middle class
For Russian outbound tourism, which is projected to
experience steady growth in the wider area of South-ern
Europe in forthcoming years20, uncertainty is a key
issue to deal with in the short-run. In recent months,
the ongoing tensions in Ukraine along with the depre-ciation
of the Ruble against the Euro and the string of
bankruptcies among Russian travel agencies did not
merely show the value of being proactive rather than
reactive in crisis management. Protecting the coun-try’s
image in the case of a market which recorded in-side
Greece an average growth rate of 50% per year
throughout a difficult period from 2009 to 2013, state
authorities together with the private sector managed to
facilitate the safe return of Russian tourists back home.
44

What is more interesting about recent instability in Russian outbound tourism is that due to political and institu-tional
conditions the markets of emerging economies have a long road to cover before they represent a stable,
trouble-free source of visitors in comparison to Greece’s other inbound markets. As a result, destinations in
Southern Europe and elsewhere need to set priorities, because it is pointless to consider visitors from economic
blocs such as the BRICs as a unified market with common characteristics and expectations.
Thorough market research and monitoring of economic environment in emerging economies is another priority,
as Tourism Economics21 believes that the distant, yet potential threat of a China crisis would hit both the global
economy and international tourism in particular.
Visitors
from economic
blocs such as the BRICs
should not be considered
as a unified market
45

Hey
big Chinese spender!
Chinese outbound tourism epitomises the value of building and sustaining a solid relationship with markets from
emerging economies. Spending a massive US$ 129 billion in 2013 Chinese tourists have preserved an unques-tionable
lead in global tourism expenditure and drawn the attention of destinations around the globe, as they
comprise a vibrant mix of big shopping spenders, cultural explorers, and tech-savvy consumers.
Chinese
tourists comprise
a vibrant mix of big shopping
spenders, cultural explorers,
and tech-savvy
consumers.
46

International experience shows that shopping is
an attraction in itself for Chinese tourists, who not
only cherish products purchased in another coun-try
as symbols of their travel experience but also
often enjoy lower prices and greater assurances on
product quality compared to back home22. Quartz23
underlined in February 2014 the positive effect of
Chinese tourist spending to the French economy
because of their pursuit of expensive purchases
and luxury designer brands. Likewise, Hotels.com24
reported in July 2014 that the mean average spend
per day of Chinese tourists when travelling abroad
is nearly $US 1.090 excluding accommodation ex-penses.
Following the relaxation of travel restrictions, coun-tries
that carry the approved destination status of
the Chinese government need to be pragmatic in
their objectives and creative in their initiatives. In
Europe, developing thematic routes and promot-ing
cultural resources is necessary to embrace the
passion of Chinese tourists for sightseeing25. This
aim is consistent with the ongoing efforts of the
EU26 to receive proposals for transnational partner-ship-
building with the aim of increasing competi-tiveness
of the European tourism sector. Schengen
countries along the Mediterranean coast are thus
recommended to work together in order to design
multi-destination packages of thematic experienc-es,
undertake joint marketing initiatives, and capi-talise
on the wealth of historic heritage.
Another issue for destination management authori-ties
and the private sector is to assess the impor-tance
of the Internet for Chinese tourists. In August,
the results of the Hotels.com survey «Disconnect
to Reconnect» demonstrated that along with other
Asian holidaymakers, the Chinese are among the
top five nationalities most reluctant to ditch their
mobile devices while on vacation.
Chinese tourists
are reluctant to ditch
their mobile devices
while on vacation
The aftermath is that tourism stakeholders are obliged to ensure that both Wi-Fi access points and informative
applications are largely available at destination scale while also building communication with the Chinese mar-ket
through popular social networks such as WeChat27.
47

The consumer
is King
As we move towards the end of 2014, it is evident that Millennials are just warming up in their travel quest saga.
Making the most of information and communication technologies, Millennials question the past and are fast
changing the world as we know it. For the tourism and hospitality industry, their self-assurance has brought with
it a storm of new consumer expectations in which successful destinations and businesses will be those which
explore and respond positively to the broad spectrum of economic, societal and environmental changes. In
forthcoming months, affluent Millennials are also the market group that is most likely to engage in augmented
reality and test the devices of wearable technology.
Millennials bring
a storm of new
consumer expectations
48

For the time being, the great shift of travel products and services online has also given the consumer freedom
to search and choose, and in making that choice, it is now the opinions of friends, relatives and other consumers
that matter the most. The mass appeal of social media allows for the exchange of opinions on travel experiences
from trusted sources.
Additionally, traveller review sites have quickly become the first stop for consumers looking for an honest first-hand
opinion about their proposed destination, hotel, restaurant and more. With 280 million unique visitors per
month in 2013, TripAdvisor is the world’s largest travel review site and owner of an array of travel media brands
offering specialist reviews on cruises, family holidays and airline services among others.
Traveller review
sites have quickly
become the first stop
for consumers
For the Millennial generation in particular, social
media has become the key resource for news, gos-sip,
inspiration and advice for matters as diverse as
holidays, consumer goods, music, fashion, politics
or relationships. The internet and social media have
encouraged this generation to share their opinions
freely, fuelling the popularity of review sites such as
TripAdvisor, among others.
For the Millennial generation in particular, social
media has become the key resource for news, gos-sip,
inspiration and advice for matters as diverse as
holidays, consumer goods, music, fashion, politics
or relationships. The internet and social media have
encouraged this generation to share their opinions
freely, fuelling the popularity of review sites such as
TripAdvisor, among others.
The result of this for destinations such as Greece is
that the traditional one-way flow of information from
the supplier to the customer is rapidly going out of
date. Instead, the rapid spread of social networks has
given rise to the direct customer-supplier ‘conversa-tion’,
bypassing the traditional media sources such as
TV, magazines, newspaper adverts or even a compa-ny’s
own web pages. Social media and travel review
sites have given consumers the role of both brand
ambassadors and consumer activists, allowing users
to recommend their best experiences and denounce
their worst in real-time.
49

The
silent traveller
Mobile devices such as tablets and smartphones are rapidly becoming the principal device through which peo-ple
manage their lives online. For young, independent travellers, the smartphone or tablet is the first port of call
to resolve the types of challenges that customer service staff used to deal with. Skift has labelled this kind of
traveller the ‘silent traveller’28 in light of his or her self-reliance and low levels of interaction with staff.
Silent Travellers
have self-reliance
and low levels
of interaction with staff
Globally, it has been observed that travellers have been slow to move from information gathering (done on
smartphone or tablet) to booking with the same device, particularly for big-ticket items such as flights or ac-commodation.
According to IPK International29, mobile bookings remain at only 2% of overall bookings globally,
however there is evidence to suggest that this is changing rapidly. Nevertheless, smartphones and tablets are
50

consolidating their position at all the other stages of the customer journey; for becoming inspired, for research-ing,
for experiencing, sharing and reflecting on journeys made – all through social media. The real-time conver-sation
between customers, their online community and brands is having profound consequences for providers
throughout the tourism value chain; those who fail to innovate and keep up with these trends may rapidly be-come
obsolete.
Against this backdrop, it is especially important
to consider that younger travellers from the main
emerging outbound markets (as identified above),
have never accessed internet through a PC, instead
using smartphones as the first and only tool with
which they are familiar, to manage their professional
and personal lives30.
Given the integral position of the smartphone as the
key tool of interaction for researching, planning, book-ing
and recording travel experiences, it is absolutely
vital for Greek tourism businesses and destinations
to have at the most basic level a presence online and
in all the major social networks for their particular tar-get
markets. Having a strategy for mobile marketing
and customer engagement is also essential, since so
many consumers are skipping the desktop and mov-ing
straight to using hand-held devices.
Many
consumers
are skipping the desktop
and moving straight
to using hand-held
devices
51

Issues of Integrated
Destination Management
The second group of ongoing trends defines a range of topics that often surpass the competence of Destina-tion
Management Organisations (DMOs), which are already under pressure in terms of operating with reduced
budgets and justifying the institutional space they occupy.
To the extent that the future of DMOs will be determined by their capacity to ensure in an effective and efficient
manner the smooth integration of different types of tourist activity into the economic and social fabric of cities
and resorts, the analysis of these trends incorporates the following lessons for the Greek tourism sector:
Tourism
is an integral element
of urban space
• Innovative ideas aimed at enhancing the urban environment through online applications are not neces-sarily
intended to be a substitute for the main body of infrastructure and city services
• The increasingly blurred boundary between residential, business, leisure and tourist uses at each place
• The active participation of tourists to the transformation of urban space
52

Wiredestinations
or Weirdestinations?
The blessing or curse
of being smart
National Park, Athens
One way to assess the impact of the visitor economy is to examine how the tourism sector has triggered and
benefited from contemporary technology and design while adding clarity, simplicity, adjustability and flexibility
to the seams and structures of the various urban systems.
The contribution of tourism to the intelligence of cities emerges through the interplay of requests for sophisti-cated
products and services and the introduction of respective solutions. The World Economic Forum31 has re-ported
that both familiar and more futuristic approaches are adopted by world cities to reduce traffic congestion
and trade barriers as well as to enhance different functions that shape the experience of travellers and tourists.
The World Economic Forum particularly refers to advanced systems of electronic visas and smart airports, the
development of which is expected to facilitate the majority of arrival and departure processes including luggage
scanning and the assessment of risk profiles, despite security concerns currently involved. Equally important
is the value added by smart technologies to the dissemination of knowledge about European cultural heritage
along with the preservation of monuments and attractions.
Electronic visas and
smart airports are expected
to facilitate the majority
of arrival and departure processes
53

Millennials
are also of ten
critical of the lack
of adequate public
infrastructure such as
public transit
and pavements
However, the question to ask is whether technology and smart design is capable of providing all solutions re-quired.
It has been said that key demographic groups such as Millennials are also often critical of the lack of
adequate public infrastructure such as public transit and pavements32. In a time of austerity, transportation and
pedestrian infrastructure is only one indication that the allocation of scarce resources is not yet to be disjointed
from a series of urban community priorities. The future will show the capacity of DMOs to draw a reasonable bal-ance
between offline and online intelligence, because the highly mobile and tech-savvy generations of travellers
today have both the knowledge and confidence to question the digitally appealing identity of smart cities in the
absence of fundamental infrastructure and urban services.
54

A big question for DMOs:
What to do about
the Sharing Economy?
The recent growth of the sharing economy in the
US and Europe has added another layer of diffi-culty
to the impact assessment of visitor economy,
which is by definition a time-consuming process in-volving
the collection and analysis of both statisti-cal
and qualitative data. This situation alludes to a
critical dilemma facing DMOs nowadays concern-ing
the reception of the sharing economy in tour-ism
and hospitality. While they have many reasons
to be satisfied with and support the introduction
of consumption patterns bringing more visitors to
their cities, they are also obliged to address tour-ism
industry concerns over unfair competition and
cases of tax avoidance as well as to protect the
destination brand from the threats of potential mal-practice.
DMOs happy with the sharing economy
but also obliged to play
down tourism industry concerns
55

This critical equation lies at the heart of the dispute
over the role of regulatory frameworks and legislation,
which appear according to place-specific conditions
of an economic and cultural nature. In the case of sites
such as Airbnb offering short-term rentals, different
destinations provide different lessons. San Francisco,
Portland and Amsterdam show how the introduction
of rules as the outcome of negotiations and consensus
building can minimise reactions and possibly help the
sharing economy become a tourist attraction in itself.
On the other hand, DMOs in cities such as New York
and Barcelona have recently started to shake things
up and pay attention to allegations and complaints on
behalf of tourism entrepreneurs and residents against
the sharing economy. However, there is also the ex-ceptional
case of Brazil, where the state saw the op-eration
of short-term rentals for a limited period as a
solution to urgent accommodation needs because of
the staging of the World Cup. The common point in all
cases is that sooner or later DMOs are realising they
have to take a stance on the ongoing expansion of the
sharing economy in tourism and hospitality.
During
the World
Cup Brazil saw
short-term rentals
as a solution to urgent
accommodation
needs
This issue is expected to stay around for a while and draw the attention of public authorities in Greece as well.
In the particular case of Greece, the main challenge in developing regulations will be to provide employment
opportunities for a supplementary source of income to segments of the population, which have mostly suffered
since the beginning of the economic crisis, whilst at the same time, not disrupting the operation of the private
sector or creating further risks for its financial performance and the respective ratio of tax revenues for the Greek
government.
56

Counting Tourists
or Counting Challenges?
No matter how cities manage to integrate smart technologies and the sharing economy into the core of travel
and tourism services, officials in top destinations will not be able to avoid removing the dust from books and
studies related to concepts such as carrying capacity and levels of acceptable change. That is a rather safe pre-diction
given that both the guests of the sharing economy and the waves of travellers from emerging markets
will prioritise the same destinations, which account for the majority of international tourist arrivals, in their future
travel lists.
Recent evidence suggests this debate is already alive in destinations across the Mediterranean. In June, The
Guardian33 reported concerns of residents that Barcelona along with Malaga and Palma de Mallorca have be-come
victims of their own success. This situation is not a simply a matter of protecting a sector which creates
jobs and operates as a source of wealth. As one of the citizens points out in the article, it is more about the iden-tification
of a critical point beyond which tourism destinations are no longer places where to live in but parks of
thematic experiences where visitors want to fulfil all their dreams in a limited space of time.
Top Mediterranean destinations
face the challenge of becoming
victims of their own success
57

According to the Greek edition of Kathimerini34, a different type of allegations has emerged in the island destina-tions
of Santorini and Mikonos due to the recorded growth of cruise tourism particularly since the lifting of cabo-tage
restrictions. In these islands, there is consensus among tourism stakeholders over the danger of providing
services of an inadequate quality to cruise passengers, but the upgrade of port infrastructure and the regulation
of cruise vessels traffic are issues that mostly require the active involvement of central government agencies in
Athens.
Between the options of hesitating and acting, DMOs are encouraged to start making their plans sooner rather
than later. What the cases of top destinations in Spain and Greece show is that the management of negative
facets of tourism development will determine faster than in other areas the sector’s economic, environmental,
and socio-cultural sustainability.
58

DMOs seek to consolidate
their role in second-tier cities
There is an explicit difference between the priorities of tourism stakeholders in top destinations and in areas
with a modest success in international tourism in attracting visitors. In the first case, tourism stakeholders are
overwhelmed by a broad agenda of issues and challenges such as those mentioned above, which together will
determine perceptions of DMOs effectiveness, although each topic often surpasses the institutional capacity of
public authorities at the local level.
In the second case, it is more urgent for tourism stakeholders to examine if the availability of limited funds is use-ful
to establish or sustain the operation of a DMO or not. The nature of this dilemma presupposes good knowl-edge
of the changing role of DMOs. According to the first phase of an ongoing study by the Destination Market-ing
Association International35, the three most important areas of activity in DMO future business models will be
marketing/branding, meeting & convention sales, and social media & SEO marketing, with product development
and leisure sales along with visitor servicing occupying lower levels of importance.
DMO future business models will focus on:
•Marketing/Branding
•Meeting & Convention Sales
•Social Media & SEO Marketing
The idea that DMOs will prioritise communication in
forthcoming years highlights the value of building a sol-id
brand for each and every destination. NBC News36 in
the US recently reported that DMOs in Portland, Louis-ville,
Pittsburgh and Milwaukee are looking to grab their
slices of the travel pie without being discouraged by the
fact their cities belong to the second tier of US desti-nations.
Self-awareness of strengths and weaknesses
in competition along with thorough market knowledge
are the most important assets for these DMOs. They
focus on selling exactly what their destinations have
and building a brand which resonates with consumers.
Rather than competing with first-tier destinations, these
DMOs see themselves and their cities as exceptional
cases of unique product offerings, which appeal to both
domestic and international tourists, while ambition to-gether
with realism underlie their marketing efforts.
Realistically speaking, however, it remains to be as-sessed
how much money and time it takes before
DMOs in second-tier cities around the globe develop
such a realistic stance. If Peak + Skift37 are right in their
conclusion that emerging destinations are everywhere
due to the engaging power of local communities and
tourists involved in the consumption of thematic expe-riences,
DMOs are recommended to reconsider their
marketing strategies and add new elements in their ef-fort
to shake up the brand of their areas.
59

The Evolving Nature of the
Tourist Experience
The last group of trends shows how well-established
perceptions of the tourism product are questioned now-adays
as a result of sweeping changes in destination
operations. These changes shape a new understand-ing
of the interaction between destinations and tourists
while occurring through the reciprocal transformation
of service providers and consumers. Keeping in mind
that the management of tourist expectations in terms
of service quality and communication engagement will
determine consumer commitment to both destinations
and the individual brands of the tourism industry, there
are two key lessons for the Greek tourism sector:
• Stability without a strategy to add depth to the overall experience is more of a sign of stagnation rather
than faith to inherent destination qualities.
• The stimulation of thoughts and emotions as a key process of the consumption of tourism products and
services, which increasingly involves opportunities for tourists to enjoy enhanced quality and become
part of the sense of a place away from home as much as possible like a local.
60

LC go CLC: Low-cost carriers
cut luxury costs
Low-cost carriers are a great example of product dif-ferentiation
in travel and tourism. Value for money
and efficiency caused the emergence of low-cost
carriers in the first place. In today’s context, however,
the same keywords define the challenge of catering
the needs of budget-conscious and well-informed
generations of travellers while expanding from do-mestic
and intra-regional to extra-regional journeys.
For Amadeus and Oxford Economics38, low-cost car-riers
face the paradox of outgrowing their business
model and being forced to adapt because of their
own success. The price to pay is that a series of chal-lenges
associated with the operation of traditional
airlines begin to become part of the low-cost carriers’
typical development agenda. While further growth
beyond the increasingly saturated areas of short-haul
markets entails higher fixed costs in relation to
fleet and airport infrastructure, fierce competition in
short-haul business travel drives innovation in prod-uct
design and paves the way to offering enhanced
travellers treatment at a reasonable price39.
Millennials and the new business class travellers
from emerging economies are expected to embrace
this strategic orientation of low-cost carriers, proving
that product differentiation and corporate flexibility
are essential skills in the international market of travel
and tourism insofar as globalization and internet ac-cess
continue working to the benefit of travellers.
61

All-Inclusive hotels
go upscale
The
all-inclusive
industry has recently
been subject
to criticism
Widely acknowledged as a dynamic segment of the hospitality sector worldwide, all-inclusive hotels begin to
resemble the case of low-cost carries in their efforts to improve product quality and integrate more closely their
accommodation establishments with the wider area of each locality. For major destinations in the Mediterranean
and the Caribbean, that is a crucial debate given that the all-inclusive industry has been subject to criticism by
Tourism Concern40 and the Tourism Foundation41 for providing limited benefits to local economies as well as less
favourable working conditions than other areas of the hospitality market.
62

In response, all-inclusive hotels are not so sceptical nowadays about what Skift42 has called ‘the rise of local in
hospitality’. The idea that a sense of local culture can pervade every aspect inside all-inclusive hotels as a stimu-lus
for further growth outside is no longer regarded as a contradiction in terms. It is unlikely that all-inclusive
hotels will ignore the sophisticated needs of an increasing percentage of tourists who seek to combine organ-ised
entertainment and favourable pricing with memorable moments that they can share through social media.
An argument provided in a recent article by HotelNewsNow.com43 is that the growing expansion of international
chains into the all-inclusive industry will enable the renewal of customer service perceptions and local commu-nity
engagement with the potential to add value through the participation of tourists in thematic activities such
as cultural tours and special events.
All-inclusive hotels
will not ignore the sophisticated
needs of new generations
of travellers
The same argument also relates to the develop-ment
of brands aimed at targeting specific groups of
customers along with the provision of higher quality
food and entertainment. For Ernst & Young44, major
traditional US and European lodging brands have de-cided
to step up into the all-inclusive industry with an
eye on the spending habits of Millennials along with
the rising middle-class from emerging economies.
Some have even launched their own custom brands
to cater specifically to this demographic. Currently,
this is another case of product repositioning aimed
at untapped market niches, with transitional phases
at both ends of the travel spectrum promoting the
adoption of higher quality standards.
63

Creative tourism:
the bright side
of cultural tourism
Although talking about creativity in tourism is far from reinventing the wheel, a growing amount of work sug-gests
there is nothing more old-fashioned than the belief that tourism experiences remain anchored to the silent
observation of cultural sites and natural landscapes. Currently, any argument that authenticity and uniqueness
derives from the exchange of ideas, skills and emotions, which together define the temporary invasion of visitors
into the life of host communities, essentially implies that creativity requires more than a few visits to museums or
archaeological sites along with the purchase of tasteful souvenirs.
The growing passion for self-discovery is suggested to provide fertile ground for both established and emerging
destinations to thrive.
The growing passion
of travellers for self-discovery
provides fertile ground
for destinations to thrive
64

Fostering a closer and more direct interaction between local people and travellers, tourism stakeholders can
help the latter feel inspired by the places they visit and the people they meet, while pushing past preconceived
notions of different cultures, both near and far, to become more dynamic and informed citizens45. What the re-cent
study of the Organisation for Economic Cooperation and Development46 also explains is that rather than
questioning the role of cultural heritage as a vehicle for both education and recreation, creative industries add
vividness and widen the scope of cultural learning particularly for those who find themselves outside their home
community.
The prospect of building meaningful experiences lies
in the emergence of intangible cultural products and
creative content through the integration of tourism
with knowledge-based creative activities that link
producers, consumers and places by utilising tech-nology,
talent or skill.
The whole idea is not short of challenges. Before trav-ellers
seize the day in the place visited and dissemi-nate
afterwards their unique experiences to others,
their input as a vital part of the end product is impor-tant
to respond to the provision of personalised ser-vices.
However, in the same way that certain guests
can interact and enhance the end product, they can
also lower the perceived quality for others. A traveller
attempting to weave a traditional carpet in a Middle
East country is a case where creativity adds value to
the destination product, but another hundred tour-ists
doing the same thing together in an organised
manner could twist the scenario and have a negative
effect on the quality of tourism experience. The only
certainty is that the thin line between personalization
and standardisation is not yet beyond tourism indus-try
preoccupations.
Creative
industries add
vividness and widen
the scope of cultural
learning for
travellers
65

Does
sustainability ‘sell’?
A common theme in the discussion of previous trends is that the growing self-awareness and confidence of
individual travellers has contributed to capacity-building for a variety of groups of travellers, who appear more
empowered than ever to harness the brands of both their favourite destinations and service providers. This does
not necessarily have to be a straightforward process for business sustainability. The European Tourism Futures
Institute47 has noted that people as citizens are in favour of sustainable practices, but as consumers the vast
majority do not want to be confronted with sustainability and the problems that relate to it.
Empowered travellers harness
the brands of both
their favourite destinations
and service providers
66

As a result, the terms green-washing and grey-washing have come to a point where they both carry equally
negative connotations. Green-washing denotes controversial practice whereby consumers begin to perceive
products or production processes more positively on the basis of misleading information about their actual
degree of sustainability. Grey-washing is a keyword for the failure of tourism industry to undertake substan-tial
investments in sustainability and engage in dialogue about the subject with customers, employees, and/or
stakeholders. Against this unnecessary dualism, an encouraging sign is that major industry groups such as TUI
have decided to speak more openly about sustainability and put forward examples of responsible credentials48.
Major
industry groups
such as TUI speak
more openly about
sustainability
From the perspective of customers, however, the latest report of Blue & Green Tomorrow49 suggests a variety of
questions people should ask in relation to their own behaviour (e.g. whether they contribute to water conserva-tion
or if they avoid the use of plastic bags and bottles) and the practices of the destinations they visit and the
brands they choose during their holidays or business trips. The power to disseminate viewpoints and impres-sions
based on facts is a breakthrough for both corporate and individual responsibility in tourism development.
Hence, DMOs are recommended to enrich their policy agenda and play a critical role in encouraging local entre-preneurs
and residents to associate actively with visitors and help them spread the word about their areas and
the achievements they have made to drive sustainability50.
67

Seven
Steps
to
Boosting
Greek
Tourism

CHAPTER 4 | Seven Steps to Boosting Greek Tourism
According to the analysis set out in this report, Toposophy experts have
identified seven areas that the Greek tourism sector is recommended to
focus on and make important steps in order to make the current growth
truly sustainable. These areas are not intended to cover the full agenda
of ongoing priorities; rather they outline the wider framework of policy
issues which should attract the attention of all stakeholders involved in
Greek tourism in the near future.
69

Consolidate
a strategic approach
to tourism development
The direct incorporation of strategic objectives in tourism planning in Greece is an urgent priority at both the
national and regional-local level. The development of a long-term national strategy is just as important as the
inclusion of its objectives inside sustainable tourism master plans that will be introduced by the empowered
regional administrations and major municipalities such as the Cities of Athens and Thessaloniki.
However, beforehand a great deal of research is required to shed light on various issues such as:
• The indirect contribution of tourism to growth in specific economic sectors .
• The travel trends of emerging markets in Greece.
• The levels of satisfaction of current visitors.
• The underlying causes and implications of the recent growth in the sharing economy.
• The demand characteristics of all-inclusive hotels, which represent 14% of the total supply of hotel beds
and approximately 11% of hotel overnights in Greece according to recent data from the Association of
Greek Tourism Enterprises, as a means to identify drivers and explain perceptions of ‘price for value’
rather than merely condemn the phenomenon as a whole.
• The return on investment of funds in advertising campaigns and B2B marketing practices including
travel trade events, networking with travel bloggers, and fam trips.
70

Under the leadership of the Ministry of Tourism, the
result would be the provision of explicit recommen-dations
to individual destinations and authorities for
various issues, as is the case with the efforts of re-gional
airports to re-structure or expand flight con-nections
to cities in Europe and elsewhere.
This demonstrates that the positive coincidence of
2013 and 2014 should not be blown out of proportion.
Rather, it should be monitored and assessed in the
wider context of corporate strategies such as:
If the above analysis is not performed, the Greek
governmental authorities and other stakeholders will
face significant challenges in deciding what the most
appropriate course of action is to help Greece:
• The continuing expansion of Ryanair’s network
from the west to the east of the Mediterranean.
• The ambition of airlines based in the Middle
East and Southeast Asia to cope with regional
competition. This is particularly important in
light of the growing presence of Turkish Airlines,
which is responsible for the rise of Istanbul as an
Eastern Mediterranean hub.
• Secure an advantageous allocation of flights
between scheduled and charter airlines as well
as between top and second-tier destinations in-side
Greece.
• Develop more flight connections with emerg-ing
markets such as Russia and China.
• Enhance the competitive position of the Ath-ens
International Airport.
71

Make progress
with massive legal reforms
Tidying up and coding tourism legislation is equally important when re-considering the scope of certain regula-tions
or introducing new ones, which is why the government should evaluate at this juncture certain priorities
among possible actions in terms of:
• Assessing obstacles and opportunities associated with the Schengen Area regulations and the potential
to facilitate visa procedures in order to boost tourist arrivals from emerging markets.
• Eliminating unnecessary charges on ferry tickets aimed at improving the competitive edge of the ferry
industry along with customer perceptions of price and value.
• Developing a better understanding of the situation with Commission Regulation No 651/2014
concerning the status of incentives for large scale investments in some areas with the highest levels of
tourism development in Greece (e.g. Crete, South Aegean, the Ionian Islands, and Attica).
• Building a proactive stance rather than running behind new trends in business models and consumption
through the regulation of sharing economy practices in the field of tourism.
• Reviewing current laws, with the aim of creating a consistent and stable taxation system.
• Evaluating existing measures and penalties aimed at strengthening the state’s response to para-tourism
and those service providers (e.g. owners of illegal lodges, unofficial tourist guides) which opt to ignore
the statutory requirements or not to pay applicable taxes.
72

Upgrade Infrastructure
and Promote
Environmental Protection
Both the public and the private sector would agree
that in navigating the road map of tourism develop-ment
both need to be proactive in protecting natu-ral
and built assets in top destinations while working
νΕς New Opera Athens
for a better future in undeveloped areas. As such,
planning for both public and private investments in
various forms of infrastructure is related to a broad
agenda that also includes the following topics:
• The simplification of requirements on behalf of the Hellenic Republic Asset Development Fund for the
privatisation of more than ten regional airports all over the country.
• The provision of high quality on-site services and tours to cruise passengers.
• The management and fast transfer of large amounts of data through the smart usage of information and
communication technologies.
• The establishment of good practices on green growth policies that will increase resistance to the forth
coming effects of climate change.
73

Bridge
the digital divide
It is essential for Greek businesses and destinations to
close the gap in the usage of technology compared with
the majority of countries in the European Union. Besides
the development of functional and visually appealing web-sites,
the scope of action in B2C marketing is wide given
the wealth of opportunities provided by the applications of
social media and mobile devices. The first step, however,
is to gain a proper understanding of how technology has:
• A profound impact upon culture and lifestyle as well as upon the interactive nature of tourist
experience, whose time horizon extends nowadays long before the arrival of visitors and long after their
departure.
• A dramatic effect on the rise of online reputation management, with businesses following clients’ re
views, reacting swiftly and sensitively to poor reviews, and building client relationships through
maintaining a continuous conversation with them in the place where they are to be found: that is, online, 24/7.
• A significant influence to the growth of search engine marketing including both paid search and organic
search results.
74

Shape tourism
product differentiation
As a response to the vague debate of alternative forms of tourism, the Greek tourism sector is recommended to
learn from international experience and concentrate on product differentiation through the provision of experi-ential
moments to visitors. Providing the experiential element is a matter of:
• Defining the visitors’ needs and expectations based on the analysis of geo-demographic profiles and
behavioural norms.
• Re-packaging and selling different experiential products by identifying each destination’s unique identity
and selling propositions.
• Adding creativity and innovation in the production of tailor made offers with significant implications for
the management of human resources.
• Exploiting the communication opportunities provided by social media and mobile devices to enhance
the interactive nature of tourist experience and service quality, as a matter of increasing customer
awareness of the attractiveness and authenticity of the selling proposition, and responding effectively
and in time to customer requests.
75

Be smart and embrace change
at the local level
The range of digital tools and appli-cations
should also drive a creative
and active response on behalf of
public authorities and tourism busi-nesses
to wider social movements,
which are directed at an interna-tional
audience, yet they evolve in
different ways at each locality. The
question is not if national govern-ment
and tourism stakeholders in
different areas are able to address
the concerns of citizens and visitors
on unemployment, environmental
pressures, the conservation and up-grade
of cultural heritage, the use
of public spaces and community
engagement.
Instead, a more important matter is what institutional measures, in terms of decentralising the tourism admin-istration
system and strengthening the availability of financial and human resources, are necessary to enable:
• The use of smart infrastructure and the integration of digital applications with the physical aspects and
regular functions of urban spaces.
• Crowdsourcing and the more active involvement of volunteers in activities that bring together residents
and tourists.
• The monitoring and evaluation of sharing economy practices which provide much-needed income to
local communities in tough economic times.
76

Invest
in Human Capital
The investment of money and time implied from the
previous recommendations is not going to be effec-tive
and efficient in the medium- and long-term, unless
there is a concerted effort to enhance the knowledge
background of people involved in the Greek tourism
sector. This matter goes beyond the purpose of re-search
as a tool to support strategy preparation and im-plementation
in tourism policy. It is more suggestive of
challenges involved for destinations and businesses to
stay competitive, provide high-quality services, and be
aware of the dynamic environment of the international
tourism market. Understanding the variety of skills as-sociated
with different positions and professions, Greek
tourism should welcome sooner rather than later:
• The acceleration of procedures for the creation of university programmes on tourism education.
• The empowerment of schools and programmes focused on professional training.
• The delivery of workshops throughout the public and the private sector as a means to promote life-long
learning and explaining contemporary trends (e.g. social media marketing, green growth
policies, climate change effects, sharing economy practices, etc.).
77

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