Bleak tourism season hits Europe

(Agencies)
Updated: 2009-08-20 14:47

Below the Acropolis in Athens, Thomas Ntaras sits outside his empty souvenir shop watching a few tourists strolling through the usually packed alleys.

The global downturn has hit his business hard this summer and it may not survive to the end of the year, he says.

"There are very few tourists and they don't spend because they can't afford it," said Ntaras, 39, who said his summer income was down 50 to 70 percent.

All over Europe, the peak summer season looks bleak with fewer arrivals and lower revenues as those who travel do so on a budget, dragging countries like Greece, Spain and Italy, where tourism is a crucial source of income, deeper into crisis.

But the financial crisis has come with a silver lining for Iceland. "Since the Icelandic currency has weakened so much, we have seen an increase in tourism," said Olof Yrr Atladottir, general director for the Icelandic Tourist Board.

Iceland's Blue Lagoon resort, whose waters are said to have healing properties, says bookings started climbing within a month of the crisis erupting last October. "It has been a steady development since then," spokeswoman Magnea Gudmundsdottir said.

Iceland is a rare bright spot.

"The decline in tourism in Europe associated with the economic downturn has been every bit as bad as had been feared," the United Nations' World Tourism Organisation (UNWTO) said.

Europe was the world's second-worst hit region after the Middle East in the first four months of 2009 with a 10 percent drop in tourist arrivals. Most tourism bodies or industry groups across Europe report similar data for the summer, with revenues seen down as much as 15 percent in Greece and Italy.

Europe boasts 10 of the world's top 20 destinations in terms of tourism revenues and accounted last year for just over half the world's international tourist arrivals, according to the UNWTO, making how tourism fares key to many of its economies.

In times of economic crisis, its sun-drenched Mediterranean beaches, ancient monuments and fashion shops do not attract as many tourists willing to spend as in better times.

BARGAIN-HUNTING

"People still have the desire to travel but might not have the means," John Kester, chief of market trends at the UNWTO, told Reuters. "They will generally not opt out (of travelling) but may try to adjust spending."

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