As many as 1,000 hotels in Greece are expected to close or be sold in the next few weeks, as owners fight for survival in the face of reduced bookings.
According to the Hellenic Chamber of Hotels, about 10% of the country’s hotel owners say they intend to sell up after official figures predicted tourism revenue for 2012 will be 5% down on last year. Recent anti-German protests — in which German and Nazi flags were burnt in the streets of Athens — have been blamed for a 20%-30% fall in bookings from German nationals. The drop in British and Irish tourists is expected to be smaller, at about 10%.
Among the worst-hit hotels are luxury properties in the centre of Athens and around Syntagma Square, where most of the unrest has taken place. However, the islands are also badly hit — not least because they tend to feature small, family-run properties that cater to Greek nationals, many of whom will not be able to afford a holiday this year. One estate agent lists 10 hotels for sale on Cephalonia; two agencies in Corfu have 42 properties for sale, with prices starting at only €350,000 (£290,000); and the Ktimatoemporiki agency in Crete has 75 hotels on its books. The crisis is not expected to affect large four- and five-star resorts, or significantly alter room rates, which currently vary from £32 to £119 a night for a three-star property in mid-July.
However, independent travellers still planning to book directly with hotels are being advised to be cautious. In the event of a hotel going out of a business, a booking worth more than £100 made with a credit or a Visa or Mastercard debit card will be refunded — though other costs such as flights and car hire won’t be covered. “If customers want the absolute assurance of financial protection, a package holiday booked with an Abta member will provide this guarantee,” Abta said.
Meanwhile, geophysicists on the Greek island of Santorini have recorded land movements of 5cm-9cm, prompting fears that a volcanic eruption is imminent. After decades of inactivity, the volcano’s magma chamber is filling, and since January last year a series of earthquakes and deformations have been recorded. While an eruption is unlikely to be on the scale of the one that is thought to have wiped out the Minoan civilisation in 1600BC, a government-appointed committee meets in Santorini on March 27 to assess the risk.