Fearful of a Greek debt default and a Grexit from the euro, foreign tour operators are reportedly forcing the country’s hotels to sign default clause contracts.
According to major Greek daily Kathimerini foreign professional congress organizers have been introducing default clauses to contracts forcing the non-payment of compensation in case the country defaults and they decide to cancel their events. That clause is reminiscent of insurance contracts which stop short of providing for compensation in case of natural disasters and terrorism attacks.
In the next couple of months hoteliers will, as usual, also have to sign the bulk of their 2016 contracts with representatives of foreign tour operators. Some operators have already told Greek hoteliers that they require extra safety clauses in case Greece will go broke and forced out of the euro zone.
The government's plan to charge tourists 18% tax on hotels and restaurants in the hope of revitalizing its economy has been described as 'catastrophic' by professionals in tourism who fear that travelers will go elsewhere.
The number of tourists visiting Greece fell sharply following the financial crisis in 2008, dropping from just over 16million in 2007, to 14.9million in 2008.
Numbers have recovered since then, surpassing 2007 levels in 2011 with 16.4million, rising to 16.9million in 2012, and then a record-breaking 17.9million in 2013, according to data from the Association of Greek Tourism Enterprises.
The group's president, Andreas Andreadis, was looking forward to another 5% increase in tourist arrivals this summer after a record 24million visitors to Greece in 2014.
But, according to Financial Times, bookings have tailed off amid concerns that Athens may soon be forced by its creditors to impose capital controls, which could affect holidaymakers as well as Greeks.