Tourism in Greece by gegeshandong




AUTHOR:                                    COORDINATOR
PALMOU MARIA,                              LECT. DR. DANA SERBAN
2nd YEAR STUDENT,                          STATISTICS DEPT.

                      BUCHAREST, APRIL, 2003

‘Gods chose to live in Greece”.

Greece is the home of Zeus and the Olympian gods.

1.1 General about Greece.

    According to this statement it’s very easy to understand why million of people every
year will choose Greece for their vacation, and of course why Tourism is a very important
part of our economy.
   Greece is a small country situated in southeast of Europe on the Mediterranean on a
surface of 131,957sq km. In the last census which was in the year 2001 the population of
Greece was calculated as 10,939,771 people and more than four million Greeks are
estimated to live abroad, more than two million of them in America.
   Greece is part of the European Union and also this year it has the presidency of the
   The language is Greek and most people connected with tourism services will speak
some English, German, Italian or French.

1.2 Factors of tourism attraction.

    There is a variety of reasons why one individual should visit Greece and this happens
because Greece as a country has many totally different natural sites.
    Above any other reason is the undeniable fact of the beautiful islands and beaches, that
because of the climate someone can enjoy almost six months every year. Scattered
throughout the calm blue waters of the Aegean are the islands, each with its own special
story. Visitors can go to Zakinthos island in the spring to see why it is the island of
flowers or the volcanic Santorini, where the blackness of the sand accentuates the brilliant
whiteness of the villages and also whiteness the most beautiful sunset in the world as
those who have seen it say.
    The serenity of islands like Skopelos contrasts with the hedonistic party islands such
as Mykonos and Paros where the worship of Dionysus the god of festivities continues to
the beat of the music.
    The coast line of Greece, because of the 3,000 islands is bigger than the coast line of
Africa. The combination of the sun and the sea is the biggest attraction for foreigners that
come from cold places from the north Europe and Greece seems to be an earthly paradise.
    Also, the long history of Greece counting more than 3,000 years. All over Greece are
reminders of the country’s glory from Athens Parthenon and Delphi’s Temple to the ruins
on Crete of the Minoan city of Knossos, a civilisation reaching even further back in to
   A country which gave birth to democracy, philosophy, sports and Olympic Games,
culture and art will attract tourists to visit the archaeological sites, museums, and cultural
festivals that show the ancient spirit that still lives through modern Greeks and the heritage
our forefathers left us all over the Greek land.
   From this fertile land of mythology, olive groves and retsina, sprang political,
philosophical and artistic ideas that shaped the whole course of western civilisation.
Greece today offers the traveller the comforts of modern Europe in close proximity to the
stark beauty of the ancient world.
   Visitors to Greece will find the Greeks to be well aware of a strong historical and
cultural heritage. Traditions and customs differ throughout Greece, but overall a strong
sense of unity prevails. The Greek Orthodox Church has a strong traditional influence on
the Greek way of life, especially in more rural areas.
     Seasonality is a very important factor in Tourism in Greece. Although summer period
is more attracting for tourists, the domestic tourism is related with Greek tradition and
religion and is expressed in short excursions both by older and younger generations. In
different seasons you can enjoy a variety of things in Greece. For example, the last 15-20
years there is a big development in winter tourism because of the winter sports that now
are more organised both from accommodation point of view and also from improvement of
the actual sport conditions.
     A visitor can enjoy the famous Greek hospitality and warmth. It provides an
experience of a lifetime. The Greek cuisine and architecture will fascinate any traveller.
And you can enjoy a pleasant staying with a possible therapeutically treatment like
thallasotherapy or spa in many resorts around the country.

1.3 Climate and Temperatures of Greek regions.

Temperature and Humidity in Greece
NOTE: Left columns reflect average temperatures in the Celcius scale and right
columns average humidity
                                               January         April

                 Macedonia                     05°C      76,3% 14,2°C 68,5%

                 Corfu                         9,7°C 74,8% 15.0°C 72,3%

                 Pelion                        6,5°C 74,9% 14,2°C 69,0%

                 Northern Peloponnese          9,4°C 77,7% 14,8°C 74,8%

                 Athens                        10,3°C 68,9% 16,0°C 62,8%

                 Samos                         10,3°C 71,7% 16,1°C 65,9%

                 Southern Peloponnese          10,3°C 72,3% 15,9°C 70,1%

                 Santorini                     11,2°C 71,6% 15,5°C 69,8%

                 Rhodes                        11,8°C 70,6% 16,6°C 66,3%

                 Eastern Crete                 12,3°C 71,3% 16,8°C 63,8%
The temperatures in Greece are changing significantly from north to south. For example
Crete, the biggest island of Greece, which is very close to Africa, has very hot winters
compared to Thessalonica, which is
close to Bulgaria, and the winters are cold.

1.4 Constructions concerning Tourism.

    The last years one could say whole Greece is under construction. Firstly, because of
the Olympic Games Athens will host next year. Sport stadiums and accommodation is
constructed. The 2004 Olympic Games will add a significant chapter to the history of the
city and will leave behind a legacy if infrastructure and technology in Greece.
    Also, we have the Metro which is under construction and expanding through stations
all over Athens but already in use the last 2-3years. The new airport which is already
finished and ready to service tourists, businessmen and the domestic circulation of Greek
population. Road and bridges constructions that will make safer and faster the journey of
many travellers and citizens. New landscaping to add millions of trees and shrubs to the

     Though cruising and sailing have become increasingly popular in Greece, the country
suffers from a shortage of marina facilities. There are fewer than 7,000 marina berths
when the demand is only in Athens is estimated for over 10,000 berths. The Hellenic
Tourist Organisation plans to expand the existing network of 20 marinas to 50, and to add
another 24 yachts anchorages in bays on smaller islands, as well as four new marinas
based at luxury hotels. The new facilities would cost a total of 150 million Euro, with
private investors contributing 65% and the remainder covered through grants from EU
structural funds.

     As Europe briefly announced, the European Commission has granted assistance
worth 219,1 million Euro for a development programme in tourism and culture in Greece.
This aid is comprised of 209,1 million Euro from the European Regional Development
Fund and 10 million from the European Social Fund. The total cost of the programme
amounts to 795,6 million Euro.
     Tourism is an important sector in the Greek economy, especially in the area of
services. It is nonetheless faced with certain intrinsic problems, i.e. the high seasonal
nature of the activity, an unequal geographical distribution, and the low quality of the
housing structures. To remedy these problems, the following measures are planned:
construction of marinas, modernisation of infrastructures, diversification of open forms of
tourism, development of a limited number of new tourist centres, vocational training
   The cultural measures are directly related to the development of tourism, concerning
for example museums, the restoration of monuments and conference rooms. The
programme is aimed at very ambitious objectives whose completion has required the
establishment of a special monitoring structure.

1.5 Tourism, Greece’s biggest industry.

       Tourism is the biggest industry, contributing an estimated 15% of gross domestic
    product and more than $8bn yearly in foreign exchange. The tourist industry is
    Greece’s largest employer by a wide margin, although the season lasts only six
    months in most regions.
           Government policy focuses on promoting year-round tourism and improving
    revenues by providing more facilities for high spending visitors. Assets owned by
    Hellenic Tourist Organisation are being offered to international investors for
    development on long leases. Promoting marine tourism is also a priority, under a
    scheme to create a chain of marinas and yacht anchorages across the Aegean islands.
           Increasingly it is recognised that human resources and intellect become some of
    the most important assets of the tourism industry. Hence, the competitiveness of
    tourism destinations and organisations of the future will depend on their ability to
    educate and train their managers and employees continuously throughout their career.
    Innovation, flexibility and interactivity will be critical for satisfying tourism demand,
    and education and training are of paramount importance in order to develop these
      This is a rule that applies also for Greek tourism that is always on
   development and the level of services provided to the consumer
   should always be elevated.

2.1 Arrivals of foreign tourists.

From the official recordings concerning tourism in Greece I have extracted a few
information about the structural changes of the tourists arrivals per countries in 1991
compared to 2000

 Arrivals of foreign tourists.

 Country                1991         2000         Fi/Eu 1991    Fi/Eu 2000
 Eu                     7,356,995    9,219,819
 Other Eu               80,995       113,813      0.01          0.01
 ASIA                   218,618      451,816      0.02          0.04
 AFRICA                 51,495       60,955       0.006         0.006
 AMERICA                255,770      305,261      0.03          0.03
 OCEANIA                75,055       67,597       0.01          0.007
 GRAND TOTAL            8,271,258    14,654,735

                             Rate of increase        Index
 Eu            9,219,819 0.253204467                 1.253204
 Other Eu      113,813       0.405185505             1.405186
 ASIA          451,816       1.066691672             2.066692
 AFRICA        60,955        0.183707156             1.183707
 AMERICA 305,261             0.193498065             1.193498
 OCEANIA 67,597              -0.099367131            0.900633
                             Average     rate     = index
                             29%per region           1.291043
          Foreign tourist structure per
                source in 1991

           Eu          Other Eu    ASIA
           AFRICA      AMERICA     OCEANIA

         Foreign tourists structure per
                source in 2000

           Eu          Other Eu    ASIA
           AFRICA      AMERICA     OCEANIA


   The rest of the world tourists represent between 0, 6% and 2% out of the European
tourists. 91% at 1991 and 90% after 10 years. Per total the number of tourists doubled.
    The largest number of tourists was and remains from EU countries and compared to it
the smallest number of tourists was :
      1991 coming from Africa. ( A coordination ratio of 0,006)
      2000 still coming from Africa, but with a constant coordination ratio of 0, 06.

   Still, the rate of increase is corresponding to the Asian countries (their number
      The largest increase is corresponding to the Asian countries (their number of
       tourists doubled.
      The smallest increase is Africa by 20%.
                            Occupancy                          Number of
Years                                      Nights                            Capacity
                            rate                               tourists
1996                        54.37          47,9 mil            9.7           88.7
1997                        58.37          53,3 mil            10.5          91.3
1998                        61.12          56,5 mil            11.3          92.44
1999                        63.46          60,2 mil            12.6          94.8
2000                        64.47          61.3                13.5          94.35
2001                        67.165         64.65               1/14          95.75

2.2 Occupancy rate evolution:

                       Occupancy rate evolution inGreece betw een

   Occupancy rate(%)

                                          y = 2.4176x - 4770
                       1994    1996     1998     2000     2002        2004


  The evolution is slightly increasing according to the linear trend, with an average
increase from one year to another of 2, 42%. According to the linear model the
accommodation capacity was in 2002 70%.
2.3 Number of nights spent evolution:

                                         Num ber of nights evolution in Greece
                                                  betw een 1996-2001

    Number of nights (mill.nights-


                                        40                y = 3.1843x - 6306.5

                                         1994    1996    1998      2000   2002    2004

  Number of nights evolution line has a large slope compared to the occupancy rate
evolution. This explains the increase after each year with an average of 3, 18 mill. Nights-
       The estimated value in 2002 is 69 million.

2.4 Number of tourists’ evolution:

                                       Num ber of tourists evolution in Greece
                                                 betw een 1996-2001

    Number of tourists (mill. pers)

                                      14.0               y = 0.9729x - 1932.2

                                         1994     1996      1998      2000       2002

 Compared to the first two evolutions, the number of tourists evolution is even higher
increasing with almost 1 million persons per year.

2.5 The capacity evolution:

                                   Accommodation capacity evolution in Greece
                                            between 1996-2001

   Accommodation capacity (mill.

                                   98         y = 1.336x - 2577.1

                                    1994    1996      1998          2000   2002   2004


 The 1 million persons increase explains the high increase in the accommodation capacity
with 1, 33 million nights-persons/years. This situation will provide a high capacity for the
Olympic Games in 2004 when there is estimated an increase of 1 million tourists only
during the one month period of the Games.

2.6 Dependent Evolution-Relation between tourists and capacity.

We have the following scatter diagram displaying the correlation between the number of
tourists as independent variable and the tourism capacity as the dependent variable.
                   Regression line show ing the relation
                 betw eeen the num ber of tourists and the

                 95            y = 0.6369x + 54.011
                 94                 R2 = 0.9596

                         0        20            40             60        80
                                   Num ber of tourists


Capacity is the effect variable for the Number of tourists as cause we have the following
highly significant causal relation:
                y= 75,7 + 1,44 x
If the number of tourist will increase by 1 million then the investors will increase the
capacity by 1, 44 million nights-persons.
Ratio of correlation                   R2 =          0, 91 = it is showing a strong correlation
The number of tourists is a significant influence factor over the capacity increase.

2.7 Dependent evolution- Correlation between occupancy rate and capacity.

                Relation betw een the occupancy rate and the
                              capacity evolution

                96                     y = 0.6369x + 54.011
                95                          R2 = 0.9596


                     0       20            40             60        80
                                   occupancy rate
As the R2 increase then the capacity will increase.

An increase in the occupancy rate with 1% is inducing and increase in the number of nights
spent by foreign tourists with 0,6 million nights-persons in the typical year.

The coefficient of correlation shows a very strong correlation, so these variable are
extremely tight or associated.
   R2 = R= r = coefficient of correlation . Due to this equality we can also say that the
linear function is moddeling the correlation between the variables
PART 3: Olympics – the main influence factor over the next year tourism in Greece

3.1. Introduction

¨As in the daytime there is no star in the sky warmer and brighter than the sun, likewise
there is no competition greater than the Olympic Games.¨

Pindar, Greek lyric poet, 5th century BC.

Image depicting the 1896 Olympic Games in Athens, set at the Panathinaiko stadium.

3.2. History:

        This view of the Olympic Games has its roots in ancient Greece. Early historic
records date the first Ancient Olympic Games to 776BC, when the core values of
Olympism first began to develop into benchmarks of human creativity and excellence.
        In 1896, the first Modern Olympic Games were held in the country of their birth.
The Greek nation and the whole world embraced their revival and once again turned them
into the greatest celebration on earth. In the century to follow, the Games traveled to
countries around the world, encountering a wide range of cultures and civilizations, facing
new challenges, growing, and evolving.
        Movement began to evolve into a philosophy of life: exalting and combining the
qualities of the body, will and mind in a balanced whole. Now at the dawn of the 3rd
millennium, the Games are returning to the country of their birth and the city of their
revival. The 2004 Olympic Games will be held from 13 to 29 August 2004. The
competition schedule includes 28 Olympic sports that will be held at 37 venues.

3.3. Accommodation Plan :

        During the Olympic Games, the city of Athens and surrounding areas will host
athletes, officials, media representatives, sponsors, IOC members, spectators and guests,
The challenge of providing appropriate accommodation facilities and services to all of
these client-groups is a complex undertaking that requires careful planning and cooperation
between ATHENS 2004, the Greek Government and the private sector.
        In order to identify accommodation at reasonable prices for spectators, the
ATHENS 2004 Accommodation Department, is making every possible effort to maintain
control over the availability and price of hotel rooms in and around Athens, during Games
        Athletes require safe, clean and comfortable surroundings in an environment where
they can focus on training, competition and relaxation with a degree of privacy. The
ATHENS 2004 Olympic Village is not a venue but every athlete’s home.
        The Olympic Village located in Parnitha, in an area of 1,240,000 square meters,
will host 16,000 athletes at team officials during the Games. The Olympic Village has
developed two zones, the Residential Zone and the International Zone.
        The Residential Zone includes 366 blocks apartments for the athletes, as well as
public utility facilities, recreational centers, halls, religious centers, the polyclinic etc. The
International Zone, which is extended in the same area, includes the main entrance,
showrooms centers, the Olympic museum and other administration buildings. The Olympic
Village is the largest of all the Olympic works and is the most expansive project ever
undertaken in Greece.
Picture of the Olympic Village:

3.4. Business Opportunities:
   About 40% of the ATHENS 2004 budget, almost 765 million Euro, refers to goods and
services that will be purchased to support the venue operations and the overall organization
of the Games.
   Businesses and suppliers, mainly in the areas of technology, catering, accommodation,
sports equipment, audiovisual facilities and Olympic overlays are invited to combine
forces with ATHENS 2004. The latter will become one of the largest consumers until the
Games in the year 2004.

Figure 3.1Pie shows the income breakdown of the ATHENS 2004 balanced budget.
3.5. Corporate:

  Greece is one of the smallest countries to undertake the task of organizing and hosting
Olympic Summer Games. To respond to this challenge, the country has engaged in an
organizational effort with the vision of delivering unique games on a human scale,
inspiring the world to celebrate Olympic values.

3.6. Mission:

      To organize technically excellent Olympic Games.
      To provide to the athletes, spectators, viewers and volunteers a unique Olympic
       experience, thus leaving behind a legacy for the Olympic Movement.
      To display the Olympic ideals in a contemporary setting through their traditional
       Greek Symbols.
      To promote and implement the Olympic Truce through the Torch Relay.
      To promote the cultural and natural heritage of Greece to the eyes of the world.
      To showcase the achievements of modern Greece and its potential for the future.


  The Olympic Games that Athens will host in 2004 have a tremendous effect on the
tourism of Greece. Accommodation, hotels and resorts are built in the last years, and part
of the investment is granted. In any case, Athens after the constructions will be even more
a modern European capital. After each Olympic Games it is calculated every country that
has been the host, to increase with at least 50% the number of tourists visiting over the
next years.
   The important thing in the Olympic Games is not winning but taking part. The essential
thing in life is not conquering but fighting well.

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