as well as the “fast-track” regime for investments.
In addition, the work of the Central Archaeological
Council is being expedited, while investments that
stagnated for years have been given the green
light. As a matter of fact, more than 1,300 cases
were promoted in just one year, while the Tourism
Development Company has been promoting a
portfolio of tourist investments.
Cruise revenues are also expected to increase in
2011 thanks to the lifting of cabotage restrictions
for vessels flying non-EU member-state flags.
It is estimated that the new conditions emerging
in the cruise sector could increase tourist rev-
enues by one billion euros. This is due to the fact
that 83% of cruises worldwide are controlled by
five large foreign companies, albeit all fleets are
registered under non-EU flags.
This year Greece also becomes more competitive
in price terms, thanks to the reduction of the VAT
rate from 11% to 6.5% for tourist accommoda-
tions, which is expected to enable the country’s
“heavy industry” to offer more attractive packages
and increase tourist revenues by almost €700 mil-
lion, according to preliminary estimates. Tourist
accommodation is not the sole beneficiary of the
decrease in the VAT rate. It is common knowl-
edge that the drop in VAT rates raises rural
incomes, enhances employment and boosts GDP
growth, one of the Greece’s critical concerns.
A typical case in point is Germany, where the
reduction of the VAT rate to 7% (from 18%-19%)
increased direct revenues by €860 million and
created more than 70,000 jobs in less than one
year.
Thus, Greece is enabled to compete in price
terms with its rivals, i.e. Spain (VAT 7%), Turkey
(8%), Cyprus (5%), Malta (5%), Portugal (5%).
The Ministry of Culture and Tourism, in coopera-
tion with the Ministry of Foreign Affairs, has based
the effort to increase tourist flows on the policy for
expediting visa procedures. According to prelimi-
nary estimates, arrivals from Russia will be
increased by at least 50% in 2011, reaching
500,000 visitors. In 2010, 328,000 Russians visit-
ed Greece (increased by 52% as compared to
2009).
Trade with Greece
141
Greece was not only
called to respond, but
also to adapt, to the
new conditions creat-
ed by the economic
crisis, in order not to
merely maintain, but
improve its position in
the global tourist
market.
”
“
