Many European countries have difficulty reopening tourism

Greece, whose economy is heavily dependent on tourism, is seeing a significant increase in tourist arrivals after two years of lost revenue due to the pandemic. Spain, Portugal, Italy... also similar. The pandemic has changed the face of the tourism industry when there is a shortage of labor force. Hotels grapple with fuel bills and inflation, which have increased in the wake of Russia-Ukraine tensions.

The Italian authorities admit that the quality of sanitation and space is a big challenge for the country's aging infrastructure. "In the post-Covid-19 era, tourists are even more concerned with quality. They want to ensure hygiene and want to be safe," said Marina Lalli, president of the Federturismo Industry Association in Italy. It is an invisible pressure that makes hotels need to change.

Visitors visit the Parthenon in Athens, Greece on February 26. Photo: Louiza Vradi/Reuters

Inflation rises, interest rates fall

Holding an electric bill in hand, Dimitris Diavatis, owner of a hotel in Greece, dashes all hope of returning to pre-pandemic levels, even as the number of visitors is crowded. The amount to be paid is more than double that of the same time last year, when the hotel was not open. "We don't expect to make a dime in profit," Diavatis said.

Soaring oil, gas and electricity prices prompted the president of the SETE Greek Tourism Association, Yiannis Retsos, to write to ministers in January calling for financial support. The association asserts that hotels that are open year-round may not be able to cover all operating fees, especially during off-peak months.

Gas prices in Europe are at record highs and escalating tensions between Russia and Ukraine increase the likelihood of inflation, reducing visitor spending and increasing supplier outlays. The Greek government has spent more than 42 billion euros on epidemic support measures from 2020 to keep businesses running, and about two billion euros since last September, to subsidize electricity bills until the end. March of this year. For hoteliers, support is still not enough.

Resort owner Diavatis said: "This was a real crisis for us. I wouldn't say it was worse than the pandemic because at least tourism was open. But back then we didn't collect and had no loss, and now it's losing money."

A resort on the island of Corfu, Greece seen from above. Photo: Adonis Skordilis/Reuters

Costas Merianos, who owns a small family-run hotel on the Ionian coast on the Greek island of Corfu, said: "In the summer, the air conditioner, the refrigerator, the kitchen, everything everything works. I don't know when this difficulty will end. I would be happy if at the end of the tourist season I don't owe the employee, the state, or the energy supplier, even if it's only 10 euros in the future. handbag".

According to Vice President of the Exceltur Industry Association, Jose Luis Zoreda, the demand for resorts in Spain has increased sharply this year thanks to high vaccination rates and the easing of pandemic restrictions in major markets of the country. This is the UK and Germany. "The market will boom from Easter, but margins will also be lower due to inflation and energy prices," Zoreda predicted.

Thirst for manpower

Greece started the tourist season from March this year to meet the needs of the market. However, this country like Italy, Spain or Portugal, the tourist season only really begins with the Easter holiday in April - a test of the summer months.

Greece and Italy are racing to fill a shortage of tourism workers, as the pandemic forces workers to go abroad to work in less precarious, off-sector jobs.

Greece's tourism minister appealed to refugees fleeing Ukraine, providing them with work and residence permits to fill some 50,000 vacancies in the hospitality sector.

Trend changes

Amid inflationary turmoil, a market for smaller, more modest vacations is opening. In Spain and Portugal, the fear of long-distance travel among many tourists is highlighting the tendency to stay in rural areas in tents, camps or mobile homes.

Tourists to Europe are looking for less noisy and more private travel experiences. In 2021, campground rents will increase by 19.2%, apartment rentals by 16%, and rural resorts by 11%. Hotel stays decreased by 8%, which was also partly influenced by the decrease in the number of business travelers.

In January, mobile homes and campervans posted a 34.1% increase in sales year-on-year, according to the Spanish Caravan Trade and Industry Association (ASEICAR). "The all-inclusive vacation model is gradually being forgotten," said a representative of Yescapa, a company specializing in renting mobile homes and camper vans.

Helder Martins, president of the Algarve (Portugal) Hotel Association, said: "More and more tourists are looking to less crowded places. I don't believe they will return to a place where there is only the sun. and the beach".

Tourists take pictures at Fajao slate village, Pampilhosa da Serra, Portugal. Photo: Pedro Nunes/Reuters

Centuries-old "slate villages" in Portugal, built from the rock of a pine-covered mountain region, are reviving after years of neglect. Bruno Ramos, a representative of a local tourism promotion agency, said the number of overnight visitors in shale villages increased by 30% from 2019 to 2020-2021.

Sonia Cortes, who owns a small five-room hotel in the slate village of Janeiro de Cima, said occupancy rates rose rapidly this summer. "The beginning of the pandemic was really hard for people who lived on tourism. But then people in bigger cities look for villages like this where they can feel safe." Sonia said.

 

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