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Victoria Mindova

Tourism is one of the crucial sectors of the Greek economy and last year, its contribution to GDP was around 18%. This is far from the upper limit that tourism could reach in financial terms. Economic analysts estimate that if local natural resources and natural geographic advantages are combined appropriately with the entrepreneurial spirit, the tourist flow revenue might even exceed 25% of GDP. One of these options is the elongation of the tourist season, which now is limited mainly between June and September.

The mild Mediterranean climate and good tourist infrastructure can contribute to the development of a tourist flow all year round. It may be crucial not only for the increase in revenue from tourism but for making seasonal jobs permanent. One way to develop new tourist sites and attractions different from Greece’ typical hot sun, sand, and seawater is to allow for the development of alternative tourism. The definition of the Ministry of Culture and Tourism of alternative tourism includes all travel services, which differ depending on specific needs, preferences and incentives of tourists. Its activities are targeted at specialized audience and follow the principles of sustainable development while helping to extend the seasonal demand of tourist services at the same time. It will allow the guests of the country to visit Greece anytime of the year, attracted by their interests - cuisine, extreme sports, health tourism, cultural events and other types of recreation not associated only with lounging and sunbathing.

Like most government initiatives in recent years, the subsidy program for alternative tourism in Greece in times of crisis was a complete fiasco. This is the opinion of industry experts who commented exclusively for GRReporter the gaps in the state program. The first and main reason why the experts believe that the program is doomed to failure from the outset is because it can involve only tourism businesses and companies founded before January 1, 2010. The government has decided that it can allocate from € 10,000 to € 400,000 to a company for a project if the amount of the aid does not exceed the annual turnover for 2010. The problem is that 100% of the money is given mainly for equipment, which in many cases is already secured. The program, however, provides only 25% of the total project for advertising costs.

"The program is a failure from the start, because once again the civil servants are doing something without consulting with the experts in the field that they want to support," said particularly for GRReporter Athena Panaretou, who is a consultant at the consulting firm for business development in tourism Poria Orama. "You know, if a travel agency wants to offer a new package of alternative tourism, it does not need money for equipment. This business has computer facilities, office and transport, and the agency's core business is advertising. The subsidy covers only a quarter of the project in this regard. Therefore, the companies have to take the rest of the money out of their pocket at a time of crisis, when there is no real financial liquidity from the usual sources. Actually, the program of the Ministry of Culture and Tourism provides for a full subsidy, if you want to repair the office, but not if you want to develop your business to new opportunities," she concludes.

Unexplained remains the idea of the ​​ministerial staff of why there is the requirement that only companies that have started their activities before January 1, 2010 are eligible. The amount of the public funding as a percentage of the total project budget is 40%. Furthermore, an increase of 5% is given to investment projects implemented in small islands with inhabitants below 3100 people. The rest of the approved budget will be covered by the beneficiary through private equity (own participation and bank loans - if used). "How could the businesspeople apply for a bank loan, given that the Greek financial institutions are not able to give loans today and are on the verge of nationalization," said the expert. Moreover, there are many unclear points in the legal text and the evaluation standards for the approved projects remain unclear, say businessmen. Thus, a good idea initially becomes lost time and money because the terms of the program do not meet the business reality of today.