Greece sees tourism falling by more than 10 per cent

May 18, 2010, 14:29 GMT

Athens - Greece is bracing for a 10 per cent drop in tourists this year as riots and images of flaming buildings have taken a toll on the country's vital tourism industry.

The fall comes at a time when debt-ridden Greece is trying to improve its battered economy, despite a 110-billion-euro international rescue programme that staved off bankruptcy.

Hoteliers' Association President Giorgos Tsakiris said he expected a 10 per cent drop in the number visitors and a 15 per cent decline in revenues from tourism compared to 2009.

He said the Aegean island of Patmos had already seen the number of tourists drop by 35 per cent and central Greek region of Lakonia by 30 per cent so far this year.

Popular destinations such as the Dodecannese island of Rhodes and the northern prefecture of Halkidiki have also reported visitors declining by 15-18 per cent.

Greece has little heavy industry and tourism accounts for an estimated 17 per cent of gross domestic product (GDP) and one in five jobs.

At a time when the debt-hit country requires visitors more than ever, it has been in the media spotlight for recurring anti-austerity protests, which have often turned violent.

Officials from the hoteliers' association said about 20,000 overnight stays at hotels in Athens and nearby resorts have been cancelled since riots on May 5 that left three people dead.

Violent protests broke out after the ruling Socialist government announced harsh austerity measures, including salary and pension cuts that were needed to secure the rescue loan.

The labor unrest has also hit the cruise industry after communist union workers stopped stopped several hundred tourists from boarding a Maltese-flagged cruise ship in Athens last month.

Unions have announced another mass strike on May 20, which is expected to disrupt land and sea travel across Greece and shut down all public services.

An estimated 14.9 million people visited Greece in 2009.