Greece: One in two hoteliers considers bankruptcy possible

At least one in two hoteliers considers bankruptcy possible, while the vast majority expect a reduction in turnover of more than 50%. At the same time, they talk about a reduction of employment of 40% or about 45 thousand jobs and estimate that the restart of hotel companies will need financing of 30%, ie about 1,79 billion euros.

These emerge from the 3rd cycle of the research "COVID-19 and Greek hotels ”of ITEP, which took place between 1-10 April 2020 in a sample of 1.779 hotels out of a total of 9.954 members of the Chamber (ie 18% of the total number of hotels in the country).

The President of the Hotel Chamber of Greece (XEE) Alexandros Vasilikos presented the main findings of this field research assigned by the Chamber to the Institute of Tourism Research and Forecasting.

As it is found among the hotels of continuous operation, 65% of them consider bankruptcy probable or very probable (46% probable, 6% very probable). The corresponding percentage for seasonal hotels is 18,3% (51,8% probable, 40,5% very probable).

At the same time, 95% of the hotels in continuous operation see a percentage reduction in turnover by M.O. 56,3%. Respectively, 94,2% of seasonally operated hotels expect a decrease in turnover by M.O. 56,1%.

Reducing the total hotel population, the hotel turnover loss for 2020 is estimated at 1,2 billion for full-time hotels and 3 billion for seasonal hotels. The total estimated loss reaches 26 billion.

Then 57,3% of full-time hotels estimate a 40% reduction in employment. Respectively, 65,4% of seasonal operation sees a drop in employment by 41,5%. Reducing the total population of hotels, it is estimated that 45.142 jobs are in immediate danger.

Also, 71,1% of the hotels in continuous operation state that they need financing, which amounts to 31,1% of their turnover. Respectively, 66,6% of the seasonally operated hotels state financing needs at 31,4%. With reduction, it is estimated that the financing needs reach 498 million euros for the continuous operation and 1.29 billion. euros for seasonal. In total, the need for funding is set at 1.79 billion. euro.

Mr. Vasilikos pointed out that in the face of an unprecedented and uncharted reality - as he characterized it - there is an absolute need for solutions and provision, noting that the proposed package has already been forwarded to the Ministry of Tourism.

The FDI proposal contains 5 categories of measures * which are divided as follows:

1. Hygienic operating conditions at restart.

2. Tax.

3. Working.

4. Banking regulations.

5. Individual targets on critical issues.

Source: kathimerini