Tuesday, May 8, 2012

Greek production and tourism closing the doors on economic recovery

Even after the EU bailout of Greece, and the subsequent austerity imposed on its citizens, not a single indicator shows that the Mediteranean nation is emerging from any sort of depression.  In fact, both economic production and tourism, the two mainstays of Greek economy, are spiraling down to historic levels.



Athens has the highest rate of empty office space in Europe, according to data for the year’s first quarter presented by BNP Paribas Real Estate.
Its report on the course of the European office market showed that the availability rate in the Greek capital soared to 20 percent in the January-March period from 15.5 percent in the same period last year.


This clearly illustrates the blow that the recession has inflicted on the country’s business activity, resulting in a major drop in demand for the lease of office space.
Additionally:
Online tourism bookings from abroad are pointing to a 12.5 percent decline for this year, according to the Airfasttickets travel agency.
Nikos Koklonis, head of the company that owns the agency, says that the biggest drop in bookings for Greek destinations this year is from the German market, which last year accounted for 15 percent of all bookings. Its share has now shrunk to just 3 percent.
Surprisingly, most bookings from abroad this year originate from Italy, followed by Britain, Spain, France and Austria. One in four clients the agency handles chooses Greece as its destination.
Association of Hellenic Tourism Enterprises president (SETE) Andreas Andreadis expects receipts from tourism to drop below 10 billion euros this year, after climbing to 10.5 billion in 2011. - Ekathimerini
Forced austerity is a death sentence to any nation, both fundamentally and economically.  Few politicians have the stomach to implement slow changes, since the people, once they get socialistic promises of pensions, welfare, and healthcare, will fight governments to the end until there is little left and the entire ball drops.

This is why Greece is simply a microcosm of what will occur to most of Europe in the future.  As former Prime Minister Margaret Thatcher once said:  "The trouble with Socialism is that eventually you run out of other people's money."

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