GREECE AND ITS TOURISTIC INDUSTRY. WHEN A CRISIS STRENGTHENS YOUR BRAND & REPUTATION

“Planning is bringing the future into the present so that you can do something about it now” 

Alan Lakein (1938). American author.  

Greece has a long tradition in tourism and hospitality mainly due to its history and ancient civilisation. The country has cultural attractions and heritage few other destinations can equal. A land of rich economic, religious and intellectual activity for more than three and a half millennia; geographically spread on an archipelago of more than 2.500 islands; located at the south-eastern corner of Europe; on a crossroad to Africa and Asia, inevitably stimulated travel activity since the beginning of recorded history. 

Greece’s plans for 2020 were to make the country a year-round destination and not just a summer fun playplace, relying on the sector to help speed a nascent recovery from a long fiscal crisis. Tourism makes up as much as one-fourth of the country’s annual Gross Domestic Product (GDP) of 181.51 billion euros bringing up to to 45.37 billion euros in critical revenues and as Greece is facing strong challenges from rival tourism countries. Tourism also employs about 20 percent of the workforce of about 4.32 million people, with some 1.08 million working in the sector that has enjoyed a string of record seasons that was a critical buffer for the economic and austerity crisis. In 2019, it welcomed 34 million visitors (three times the country’s population), who directly contributed 18 billion euros in revenue (around 10% of GDP). 

After a decade-long economic crisis, the first signs of a recovery were finally starting to emerge for Greece. But the coronavirus pandemic swiftly brought this to an end. Greece found itself confronted with a potential public health disaster on its hands, as a highly contagious virus collided with a teetering public healthcare system picked apart by years of austerity. But the government moved well before the virus reached its shores, as it saw infections spread in Italy. An ad-hoc scientific committee was set up with top epidemiologists, virologists and infectious disease experts. Some accused the government in Athens of not just entrusting the handling of the pandemic to scientists, but of handing over responsibility too. The first confirmed case in Greece was recorded, on 26 February. And the country reacted swiftly. Greek Prime Minister Kyriakos Mitsotakis imposed tighter restrictions over a period of weeks and it was made clear that no exceptions could be made.

Within two weeks, Greece shut all educational institutions, followed by the closure of bars, restaurants, museums, retail outlets, parks, commercial beaches and gyms. The first death was recorded on March 12. Twenty-six days after the first case was reported and with deaths totaling 15, full lockdown measures were brought into force. 

The country hit day 50 of its outbreak on April 15 with a total of 2,192 cases and 102 deaths. By contrast, on day 50 of its outbreak which fell on March 20, Italy had recorded 41,035 cases and 3,407 deaths according to the WHO. Spain, which hit day 50 on March 20, recorded 17,147 cases and 767 deaths. The lockdown was imposed much earlier than in most countries in the western world. The government reacted in a very competent manner, listening to the right people and making the right judgement, especially given the lack of a strong precedent but also in terms of communicating the decision and keeping people in their homes. 

At the end of March, with the slogan “Till Then #StaySafe”, Marketing Greece launched a new campaign inviting people to keep dreaming of all that Greece has to offer, even as the world battles the spread of Covid-19. The goal was to remind the world that this too shall pass, and Greece will be here ready to welcome all when it does.

At the beginning of April, the “Greece from Home” platform was launched by the Greek National Tourism Organization (GNTO) and Marketing Greece, with the support of Google, and was aimed at reinforcing the country’s positive image during the Covid-19 pandemic by helping people around the world stay in touch with Greek culture and be inspired by the country’s attractions. The site was built on the principle of content marketing: using great online content to create a relationship with potential customers. Through YouTube videos and other content, creators gave viewers a chance to tour archeological sites and museums, experience beautiful scenes of nature, and even take ‘walking’ tours or visit restaurants, all virtually. The “Greece from Home” online was applauded by Microsoft's Bill Gates as a “brilliant initiative” and an example of successful content marketing. 

Two months ago, The Hellenic Initiative launched a fundraising campaign ‘THI COVID-19 Emergency Response Fund’, aimed at raising donations from Greeks and Philhellenes of the Diaspora to support community-based organisations, entrepreneurs and the Greek public health system. 

At the beginnning of June, Prime Minister Kyriakos Mitsotakis introduced “Restart Tourism,” Greece’s new campaign for the 2020 season with a short promotional video targeting a foreign audience: “A Greek Summer State of Mind”. A cooperative effort of the tourism ministry, the Greek National Tourism Organisation (GNTO) and Marketing Greece. The new campaign has been designed to send out a message of optimism and inspire the world to travel to the country whenever possible. The new campaign aims to inform international travelers of the experience the Greek summer offers, which does not stop at “sun and sea”, but contains something deeper, more true, more humane: the feeling of freedom, happiness and anticipation for the best days to come. Greek summer is “a state of mind”, it is about “being with the people you love”, “connecting with nature” and “feeling free”. 

The campaign’s video, which in just 40 seconds highlights this uniqueness of Greece, aims to create a new brand for the country: the Greek Summer. A brand that at this stage urges the world to “experience” Greece from wherever they are, considering that travel is not possible for all at this time. In the long run, the campaign is expected to boost Greece’s popularity and put holidaymakers in the travel mode to visit in the near future. Greek summer is a feeling. Greek summer is a state of mind. This is a campaign that not only invests in 2020, but also looks beyond, towards 2021 and 2022.

After months of strict measures and a lockdown against the novel coronavirus that turned out to be a success story for Greece with less than 3,000 recorded cases and a total of 180 fatalities until today, the country was said to be ready to open its borders to international visitors. The first phase towards normalization began on May 4 and the government’s plan is to gradually lift all measures. On June 15, flights to Athens and Thessaloniki airports will resume for countries with a good epidemiological profile, while as of July 1, flights to all Greek airports and from all countries will restart. The government’s target is to focus on three main factors: to keep workers healthy, to be able to deal effectively with any Covid-19 cases, especially in the islands, and to be able to protect the jobs of people working in the tourism sector.

According to that plan, tourists wil be allow to enter Greece without taking a coronavirus test or remain in quarantine when international flights restart on July 1. According to the ‘Restart Tourism’ plan, Greece during the tourism season will be able to manage possible Covid-19 cases immediately and on the spot at destinations, while safely welcoming and hosting tourists from abroad.

Priorities of the the country’s tourism restart plan includes making sure employees and visitors are safe; strengthening health infrastructure in tourism destinations where needed; and supporting tourism businesses.

Greece’s incoming tourists will not need to have a coronavirus test prior to travel nor will they be quarantined after arrival. However, visitors will undergo sample tests when deemed required. Greek tourism’s restart plan provides specific health protocols for Greece’s hotels, tour buses, car leasing companies, ferries, airlines (health rules on board flights and in airports) and checks at entrance gates (questionnaires and sample tests). The plan also sees to enhance the health capacity especially of the country’s smaller islands by providing tests and more doctors as well as quarantine areas.Frequent health checks will be carried out to all businesses. All of the country’s tourism businesses will display the special seal “Health First”.

Referring to supporting tourism businesses, the following measures were announced:

• Tourism businesses will be able to extend the suspension of employment contracts until July 2020.
• Tourism businesses are eligible for reduced lease payments by 40% until August.
• Employees will be supported until September with funds from the EU’s “SURE” program.
• The government will provide support to seasonal tourism employees.
• The government will regulate repayable advances to relieve businesses.
• Tourism businesses are eligible for a reduction of advance income tax payments.
• VAT cuts on transport, coffee, non-alcoholic beverages and package travel
• Businesses will receive financing through the ‘Entrepreneurship Fund II- TEPIX II’ in combination with the Guarantee Fund and the Development Bank.

Greek tourism’s restart also includes plans to boost domestic tourism, aiming to attract more Greeks to destinations and tourism enterprises for the 2020 season.

In regards to promotional actions, the Greek goverment mentioned a budget of 23 million euros that will include targeted advertising campaigns in the markets.

The response from Greece is being exemplary and speaks not to the effect of austerity, but rather to the impact and importance of a comprehensive, agile leadership and response plans.

Greece’s superior handling of the coronavirus puts it in the best pole position for the restarting of tourism. Greece knows that tourism is a very precarious business so this summer and next, it will not be about price, but about quality, and health going somewhere safe. Greece is well aware that the priority must be securing existing bookings and then persuading those who previously cancelled to rebook for later this year or next year.

As for the future, there may be opportunities hidden within the crisis. This is Greece’s time to diversify the core tourism industry, among others. Greece has leapfrogged into digitalisation through this crisis, it opens an opportunity to develop sectors in technology such as cyber security and cloud computing. renewable energy and energy sustainability could be very important given Greece's enormous natural potential. It's a unique opportunity. It will be quite a big, long-term infrastructure investment and will serve so many different purposes.