Greece Looks To Boost Economy With Tourism

With their country ravaged by the effects of a crippling austerity drive, Greeks are keen to maintain their historically strong tourism industry.

In a bar in Corfu the owner jokes with British tourists that Germany is going to claim the island and several others as payment for the Greek debt .

The beautiful beaches and vistas are indeed one of Greece's finest assets, but no use to the country if it is only Greeks indulging in them.

Tourism employs one in five of Greek workers and creates 18% of the country's GDP, but it also boosts other local industries such as construction.

However, this year bookings to Greece are down by a fifth and since the indecisive elections the numbers booking holidays have dropped further.

Nikos Ziseakis runs a water-ski business on the island. He says that for this time of year business is not picking up as it should.

"They're scared to come here, scared of crime and robbery," he says.

"That maybe happening in Athens but it's not happening here. Here everything is calm."

In Corfu town, we saw military bands march through the streets to celebrate the island's unification with Greece.

The town, with its picturesque Venetian architecture, is bustling, but most of the tourists are on day trips from cruise ships and shop owners say trade is down 30%.

The island's mayor, Yiannis Trepeklis, who attended the parade, was upbeat.

"The beginning of the season this year has been excellent for Corfu and we have high expectations especially from the British market," he told Sky News.

"Corfu is doing well because it has a track record of great hospitality. We are not influenced by the political problems or by governments."

But moments after saying this, political activism rained on the mayor's parade.

A far-left group of demonstrators arrived at a wreath-laying ceremony with a large banner to protest about the presence of a fascist group in the crowd.

As the band continued to play, the activists on both sides chanted while being separated by police.

It was hardly a holiday photo opportunity and more a reminder that even remote areas are touched by Greece's fragmented and extremist political scene.

The images of protests and riots on TV have been bad public relations for Greece and the tourist industry has additional concerns.

The austerity measures have included a 4% rise in VAT on restaurant food to 23%.
Lakis Vlaseros runs The Brother's Hotel in Sidari, which mostly takes British holiday makers on Thompson packages.

He told Sky News: "The VAT has to change. It is making us less competitive and at the same time we try to absorb some of it by cutting into our profits.

"The Greek islands and beaches are Greece's factories. We have to protect them and invest in them."

Expat Sian Wood, originally from Dudley in the West Midlands, runs a restaurant and letting business in Corfu.

She now only accepts booking payments in British pounds and says the biggest fear for businesses and holiday makers is Greece's possible euro-exit.

She said: "Tourists don't know what to expect when they come here in regards to the currency they are going to be paying with and whether the hotel they're staying at will still be in business. As a result bookings are down."

Brits contribute to 75% of Corfu's tourism and Sian is one of 8,000 British expats living on the island.

Her obvious concern is what happens to the value of her properties if Greece goes back to the Drachma.

She fears they could lose at least 40% of their capital on the exchange. Back on his water-ski jetty, Nikos Ziseakis also contemplates Greece's potential euro-exit.

"My opinion is (that) it's going to be hard for maybe the first three or four years and then things will improve," he said.

"It could be a new start for Greece. I'm not sure though. I'm confused."

Nikos looks around his office space. Clear blue water laps on to the stunning Ypsos beach, set in green hills dotted with fine villas.

It is hard to feel sorry for him and he does not seem too stressed by it all.

There is no doubt that Greece still has great assets, but now more than ever it must think how best to cash in on them. And if you want to help save a euro crisis, one way is to holiday in Greece.