Hoteliers grateful for weaker euro, oil drop

By Stathis Kousounis

Fluctuating foreign currency rates may affect the number of tourism arrivals in Greece this season to a greater extent than in the last few years, according to the president of the Hellenic Hotel Federation, Yiannis Retsos.

The weakening of the euro ? against the US dollar and the British pound in particular ? is making European destinations considerably cheaper for American and British holidaymakers. There have already been reports in the US and British media referring to the advantages of continental Europe as a destination, recommending early bookings for tourists to make the most of the exchange rates.

In this context Greece can reap significant benefits, argued Retsos, raising its share from the British market ? the second biggest for Greek tourism ? and the USA.

The rise of the dollar against the euro also makes other destinations where the dollar is used more expensive, which according to Retsos will play a role in the travel choices of Northern Europeans, as in previous years they chose long-haul dollar destinations with competitive prices compared with Southern Europe.

Another positive element for this season will be the decline in global crude oil rates. This reduces costs for air carriers as well as hotel enterprises? operating expenses, which contribute to the lowering of prices for package holidays.

On the other hand, the head of Greece?s hoteliers points to the problems in the Russian travel market. The crumbling of the ruble in recent months has been added to the issues affecting outgoing tourism from Russia since early last year, such as successive tour operator bankruptcies and rocky relations with the European Union. For this year all forecasts point to a further decline in Russian...