Ernst Young estimates € 8 billion in losses to Greek Tourism Sector in 2020
Updated: Jun 25, 2020
Tourism is a key economic sector in Greece, accounting for some 20% of GDP and employment of nearly 850,000 people in 2019, according to the World Travel and Tourism Council. Tourism is also a magnet for investment in Greece, with numerous hotel investments taking place. The COVID-19 Pandemic will have a major negative impact on Greek tourism. Ernst Young estimates total losses of € 8 bln in 2020 compared to 2019 under its base case scenario.
Athens, Greece: 18 June 2020
According to Ernst Young (EY), the Greek hotel industry is expected to suffer damages of € 4.46 bln: € 3.26 bln for seasonal hotels and € 1.2 bln for hospitality units operating year round.
The value of tourism goods and services in gross value added terms (GVA) is set to drop from € 22 bln in 2019 to three different scenarios:
€ 16 bln in the best case scenario).
€ 14 bln in the base case scenario
€ 12 bln in the worst case scenario
The biggest decline is expected in the second quarter of 2020. The possible extension of the tourism season will not necessarily be enough to recover losses in the second quarter.
EY analyst concludes that stringent health protocols and safety measures are priorities in addition to maintaining close contact with suppliers, investors and regulators; ensuring liquidity; proactive management and regular assessment of critical indicators; as well as approaching new markets and creating alliances with countries with similar epidemiological characteristics.
Navigator Consulting Group reminds readers that it is too early to make a forecast for full-year GDP losses because we do not yet know the full picture of public and EU support resources that will be released to companies and consumers in Greece.
Navigator supports investors and operators in the Greek tourism and travel sector restructure and invest in operations to meet current and future challenges. We provide investment advisory, investment due diligence and tourism strategy development services.
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Greece: Preparing for the Coronavirus Impact on Tourism and the Economy
6 April 2020
Greece announces tourist arrival policy
1 June 2020
COVID-19 Industry Pulse Report: Tourism
EY. 18 June 2020
EY: Estimated Tourism Losses for Greece at €10 billion due to Covid-19
Greek Travel Pages. 18 June 2020