
The first nationwide survey on the “Effects of the Russia-Ukraine war on Greek businesses and tourism” shows only a slight impact on the viability of tourism businesses from the interruption of the tourist flow. The survey was presented by the Central Union of Chambers of Greece (KEEE) in collaboration with Palmos Analysis.
As emphasized, tourism companies expect to make up for any losses by targeting other foreign markets, as well as the domestic market.
Trade with Russia/Ukraine
There is a sharp drop in import and export activity in relation to the two warring countries with an emphasis on problems in Northern Greece and in specific sectors of activity. However, the risk of “harsh” consequences, such as layoffs, suspension of operations, etc., is limited and is mainly found in very small businesses and in very specific industries.
In order to deal with the situation, businesses with import/export activity with Russia/Ukraine are proceeding to look for alternative source countries or alternative routes/modes for importing/exporting products or channeling their products to the domestic market.
At the same time, there is an order of increase in the prices of their products above the levels of current inflation to deal with the increased costs, due to the large increases in the costs of energy and raw materials, etc. Finally, subsidizing the cost of energy is the most popular support measure from the State, according to the businesses that participated in the survey, followed by the suspension of tax/insurance obligations (mainly among very small businesses).
Tourism businesses in areas with a presence of Russian/Ukrainian tourists
In general, the participation of Russian/Ukrainian tourists in the customer base of tourism businesses is small and very little impact on the viability of tourism businesses is expected from the interruption of the tourist flow from the two warring countries. Already, tourism businesses expect to make up for any losses, by targeting other foreign markets and the domestic market, while they estimate that there will be a restoration of the flow of tourists from Russia/Ukraine, from the very next season after the war ends.
In addition, there is a significant increase in operating costs for tourism businesses, as a result of which an increase in the prices of their services is expected, slightly above the current inflation levels, to deal with increased costs of energy and raw materials, etc. However, the price increase trends appear milder in accommodation and tourist offices, due to “locked” agreements. Finally, the energy cost subsidy is recorded here as the most popular support measure from the State.
Russian tourists abroad
These are people of a higher socio-economic class. The safety of the destination, the price-value relationship (value for money) and the “sun & sea” dichotomy are the main criteria for choosing a holiday destination abroad, while Russia’s relations with the destination country are rated much lower. They organize their holidays abroad mainly through tourist offices and Greece is among the most popular destinations abroad for their holidays. There is expected to be a significant reduction in the flow of Russian tourists abroad due to the war and the impact of the reduced flows during this season seems to be mainly in the European countries of the Mediterranean, including Greece. In the medium-long term, however, there is so far no serious impact on the image of Greece as a tourist destination from the deterioration of relations between the two countries due to the war.


Latest News

Trump Tariffs Jeopardize Growth: Piraeus Chamber of Commerce
The tariffs, aimed at reducing the U.S. trade deficit, are expected to have both direct and indirect effects on the European economy

EU Condemns Trump Tariffs, Prepares to Retaliate
As tensions escalate, the EU is expected to continue negotiations with Washington while preparing for potential economic retaliation.

The Likely Impact of Trump Tariffs on Europe and Greece
Trump tariffs are expected to negatively affect economic growth in the Eurozone while Greece's exports could take a hit.

Motor Oil Results for 2024: Adjusted EBITDA of 995 mln€; Proposed Dividend of 1.4€ Per Share
Adjusted EBITDA for 2024 was down 33% yoy. The adjusted profit after tax for 2024 stood at 504 million euros, a 43% decrease from the previous year

Cost of Living: Why Greece’s 3% Inflation Is Raising Alarm
Greece appears to be in a more difficult position when it comes to price hikes, just as we enter the era of Trump’s tariffs.

Fitch Ratings Upgrades the Four Greek Systemic Banks
NBG’s upgrade reflects the bank’s ongoing improvements in its credit profile, Fitch notes in its report, including strong profitability, a reduction in non-performing exposures (NPEs), and lower credit losses

Trump to Announce Sweeping New Tariffs Wednesday, Global Retaliation Expected
With Trump's announcement just hours away, markets, businesses, and foreign governments are bracing for the fallout of one of the most aggressive shifts in U.S. trade policy in decades.

Inflation in Greece at 3.1% in March, Eurostat Reports
Average inflation in the eurozone settled at 2.2%, compared to 2.3% in February

Greece’s Unemployment Rate Drops to 8.6% in February
Despite the overall decline, unemployment remains higher among women and young people.

Jerry Kalogiratos Highlights Key Role of Energy Transition and Data Demand in LNG Outlook
Energy transition and the prospects of LNG were discussed at Capital Link’s 19th Annual International Maritime Forum, during a panel discussion with Jerry Kalogiratos (Capital Clean Energy Carriers Corp.)