Greek Default: What it Means for Travel
by Daniel McCarthy /At midnight on Tuesday, June 30, Greece’s existing European bailout expired, meaning the country defaulted on its 1.5 billion euro ($1.7 billion) loan from the International Monetary Fund (IMF)—the first developed economy to do so.
The news means that things will inevitably get tougher for the people of Greece, a country where household spending and employment has dropped significantly over the last few years, businesses have closed and people are struggling.
Earlier today, Greece Prime Minister Alexis Tspiras announced the country would accept an IMF bailout offer that was previously offered—with a few changes—but won’t hear back from European officials until later today, and the default makes it even more difficult to work out a new agreement with the IMF.
While everyday life in Greece has been greatly affected by the news, it has been business as usual for tour operators and travel agents selling the country.
Tourism in Greece is as healthy as it has ever been, they said, and while clients there now may have some minor worries, business from an agent and tour operator’s point of view remains unaffected.
No ATM restriction for travelers
Despite banks closing and a limit of 60 euros ($66) imposed on ATMs across the country, international tourists traveling with credit cards and bank cards will still have access to cash, which has been the question most often asked of agents with clients traveling—or planning to travel—to Greece.
“There is no restriction for American bank account owners to withdraw money from the ATMs. The only limitation is what your U.S. bank account usually has,” said Veronica Liadis, president of Newton Square, Pa.-based Liadis Travel, specialists in travel to Greece.
Even European ATM or currency cards will not be affected by the limit, as the only ones affected will be people with accounts inside Greece, according to Liadis.
“Circumstances are the ground are normal, they’re [clients] enjoying themselves. The lives of ordinary Greeks are complicated now but it hasn’t affected tourists,” said Robert Drumm, president of tour Alexander+Roberts.
Still, both Liadis and Drumm said they tell clients who are in Greece that, to play it safe, it’s best to carry euros exchanged at home or in another European country.
No cancellations
While concern from clients who’ve booked trips to Greece is inevitable, neither Drumm nor Liadis has seen any cancellations.
“We’ve had a lot of inquiries, certainly from agents, about what’s going on. We’re not noticing an impact,” said Drumm.
“Greece has been in the news for a long time. If anything, it’s spurred on business.”
For Liadis, Greece bookings have not only been unaffected by financial concerns rather travel to the country has increased.
Liadis has had to turn business down because of lack of hotel availability in Athens. She said the major hotels across the country are booked out until September.
“The hotels are very accommodating, the people have been as pleasant as can be, there is no unrest from the locals,” Liadis said, “I think they understand how important tourism is to their economy.”
For Collette, tours in the country have not been affected although the tour operator is still monitoring the situation should things change.
“We have no service interruptions and presently have tours on the road in Greece,” said Paula Twidale, executive vice president of Collette, “We will continue to monitor the situation closely and advise guests accordingly should anything change to affect their future travel plans.”
Greek appeal
While the recession in Greece has reached all corners of the country, the travel business might be one of the country’s healthier industries.
That’s because the spending in the travel business comes from foreigners, Drumm explained. He also stressed the country’s eternal appeal.
“The appeal of Athens and Greece for cultural reasons and the beauty of its islands; they’re not going anywhere and people will go,” he said, “There is such a kindred spirit between Americans and Greeks, too, that’s not going anywhere.”
Greece has, not only the appeal, but also the prices to continue as a major player in travel.
“Pricing is appealing, I think has something to do with the situation. Greece offers good prices and great experiences,” said Drumm.
“You can get at some spectacular restaurants in Santorini and Athens that are half the cost of the restaurants in Paris and Rome,” Liadis added.