Before the recent election Syriza accused of the government of tackling the
debt at the expense of the ordinary person and the small business. As Tim Black
explains on Spiked, Syriza’s politics draw on anti-capitalist populism characterised
by localism, green politics and a strong anti-big business rhetoric.[i]
In this vein, they have argued strongly
against the growth of the all-inclusive deals that are popular with increasing
numbers of tourists. According to Syriza's leader Alexis Tsipras, this model
‘largely alienates tourism from the local economy’.[ii] Specifically, Tsipras has stated that
contracts for the use of public land signed with hotel and resort developers during
the memorandum (the agreement over Greece’s debt repayments) would be reviewed based on the public interest.
Syriza have also talked of debt write-offs for hospitality
SMEs, stopping the privatisation of regional airports and reviving the national
carrier Olympiaki Aeroporia that went bankrupt in 2009. They have pledged to
set up a state ferry operator to challenge monopolies on the country’s
many ferry routes.
Such plans, described by the BBC’s Paul Mason as Keynesian and
involving an expanded welfare state, look unlikely given the state of the
economy and the level of debt.
The new deputy tourism minister Elena Kountoura is an ex-athlete, holding records in the 100
metres hurdles and high jump, and a former model who has featured on the cover
of Vogue. She is a member of the ANEL (Independent Greeks), the right wing
coalition allies of Syriza. Kountoura has
already gone some way to reassure the industry that it is ‘business as usual’,
stating that: ‘No action will be taken against all-inclusive products. On the
contrary, a further quality improvement of all-inclusive products will enhance
the diffusion of the benefits of this specific tourism product in local markets
and societies.’[iii] There
is a clear recognition amongst populists of the Right and Left that the tourism
industry must play a key role in economic recovery.
Opposition to all-inclusives is based on a critique of the
role of such holidays in development, and is prominent amongst the many critics of mass tourism in the universities and amongst green tourism campaigners. The argument holds that too little money
is spent in local businesses and too much in the enclave. The big hotel chains,
it is argued, often fail to draw upon the local economy, preferring imported
standardised consumables, fixtures, fittings etc.
However, alll-inclusives accounted for around $2.3 billion out of a
projected $17.6 billion tourism revenue in Greece last year, and its relative
importance is growing rapidly.[iv]
The all-inclusive share of the UK outbound market grew by 25% between 2008-2013.
In the UK ethical tourism campaigners Tourism Concern have
long criticised all-inclusive holidays. They have just published research designed
to show that they damage, or at least fail to offer tangible
benefits, to local people. [v]
The research makes some good points but is not convincing – it is based on the perceptions
of tourists rather than objective economic analysis. It is certainly true, as Tourism Concern highlight, that
workers’ rights are sometimes denied and pay is low in the resorts. Yet there is no evidence that this is anything other than a
general characteristic of the economies in which the hotels operate, or that
locally owned SMEs offer better conditions and pay.
The research does indicate that there are many holidaymakers who prefer
their culture local and the businesses they patronise small. The new Greek government’s tourism planners should
try to have their cake and eat it. They can look to develop the all-inclusive
sector positively, whilst also diversifying further. Syriza have said they want to encourage niche
forms of tourism such as medical, cultural and ecological. This makes sense, as
such markets are less seasonal and also can be high spend. Yet it need not be
counter-posed to a growing, lucrative all-inclusive market.
Of course there is one policy that could make a big positive
difference to Greek tourism. Withdrawal from the Euro would lead to a large
devaluation of the currency, making the country exceptionally attractive for
tourists from Europe, North America and growing markets such as China. The
politics of Europe could be a decisive factor in the fate of Greek’s tourism
industry.
