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Macroeconomics article: the failure of greek tourism industry

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Macroeconomics article: the failure of greek tourism industry

Europe in particular is a very strongly growing travel destination and a great place to work as a human resources employee for a travel organization. But Greece is lagging behind in this respect by quite a margin even though it has enough natural and historical resources to develop a huge tourism industry. It could be mentioned in this context that in order to have positive impacts in the economy of today’s world of tourism one needs the retention of education and higher education as a foundation for training leading to employment in the perspective of tourism industry.

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  This is achieved by ensuring that Greece develops the general skills, knowledge and understanding that strengthen a range of occupations and/or professions by offering the opportunity to acquire a number of key skills and concentrate on the five phases of tourism management viz. research, design, planning, coordination, and evaluation.[1]

But the chief problems in the case of Greek tourism industry controlled by HATTA or Hellenic Association of Tourism and Travel Agents is failing in all these departments thus resulting a poor promotion of the region that otherwise could have been a huge success given the fact that this region was the “cradle of western civilization” and the groundwork of the tourism industry has already been done by the history books.

[2]However, with such a high competitive advantage the HATTA is still struggling to make a proper impact do justice to its potential in terms of tourism.

One of the main reasons of the failure of HATTA is its poor planning regarding tourism promotion. Weak funding is the direct result of inability to create potential for Sponsors. This lack of funding directly translates into the recruitment of poorly trained staff that is enough detrimental for any industry particularly for hospitality industry like tourism. The lack of proper funding and promotion also results in inadequate consciousness not only among potential tourists but also among potential volunteers who are very important for an industry like tourism where word of mouth and public relation is a major promoting factor. [3]All these sum up in the sorry state of poor media relations. The direct result is showing and this leads to the failure of achieving the potential mark of success. Furthermore, construction of a weak site is doing no help for the HATTA and the fact is that the poor quality is simply another ramifying factor of the HATTA. [4]

The present GDP of Greece is about $251 Billion with a GDP at per capita stage is about $23000. The present growth rate of the country is about 3.5% and the inflation rate reads 3.3%. In this context the rate of unemployment is about 9.2%. In general Greece runs on a deficit budget of about $2.6 billion as its income per budget is about $45 billion and its expenditure is about $47.6 billion.[5] In this context tourism could have an enormous effect on the economy is controlled and monitored properly by a professional organization. With bio production like dairy products, beef, potatoes, tobacco, wine, olives, tomatoes, sugar beets, barley, corn and wheat and natural resources like marble, petroleum, lignite, and bauxite tourism could have been a major boost for the countries economy as this is the major industry that comes ahead of industries like metal products, textile, food processing and mining. But failure to live up to its potential has cost the country a huge amount of foreign exchange and a stable economy.[6]

It can be well mentioned that the Greek currency Drachma has been loosing its potential from 1996 by quite a margin. Against Australian dollar, as seen in the graph, it reflects a very poor show indeed. The same story is repeated when the Drachma is posted against the UD dollar or Pound. All this is the result of inability to build up a proper and sustainable resource of foreign exchange and the responsibility of this inability is sure to be faced by the HATTA or the Greek Tourism authority as this industry is the driving force of the country.  This failure has a cost to pay and Greece is paying this cost in terms of economy in relation to the other nations of Europe. It could be well mentioned that Greece is one of the poorer states of Europe. But it can be certainly said that if the tourism sector is well nurtured the entire scenario can be changed and Greece could well become a prosperous country.[7]

However, there are also related issues in the context of failure of the tourism industry. One such issue is the advent of terrorists groups that threat the government and thus affects the tourism industry. Alongside this factor there are also other factors that ramify the industry. One such important factor is the lack of proper infrastructure that is detrimental for any industry and it is truer for an industry such as the hospitality sector.

This is where the government of Greece should indulge more into the industry of tourism. Yiannis Evangelou, president of HATTA, mentioned in an interview in 2004 that the government should provide more funds to the organization and treat it like a long term investment. The main reason behind this statement is that this tourism industry, specifically for Greece, a country with abundant natural beauty and historical monuments, has got enough potential to channel the future of the country into prosperity. [8] Thus it is essential to build up a long term plan that includes infrastructure that would prove to be the essential element required for the industry to flourish in the long term. Additionally, Yiannis Evangelou also mentioned about the funding required from the government for the industry too. Furthermore, to the government should also clear the problems regarding the terrorist groups and resolve their issues to develop a long term sustainable tourism industry where safety is the keyword for success. [9]

The proposal for the success of Greek Tourism industry or HATTA is loud and clear. It is obvious to mention that a lot is to be done to develop the tourism industry of Greece particularly in the perspective of promotion. The chief aspects would be Strong funding, creating good potential for Sponsors, Well-trained staff, many volunteers, Good media relations and an excellent site.[10] Thus from the point of view of tourism management it is important to do things right in logical and sustainable manner resulting direct operations, enforce effective and successful policies and logical and purposeful rules, properly design procedures and tasks, control results and foster stability of the achievements and industry. Alongside a proper mechanism of leadership should be created that would ensure motivation and execution of the right things. This well formulated leadership should also monitor guest expectations and communicate vision and values. Furthermore from the point of view of leadership it should be ensured that the management systems and processes are well established and executed. This leadership would also be responsible for supporting people and engage in continuous improvement.[11]

The separate steps involved in tourism management should begin with tourist site requirements, which include: site attractiveness, site infrastructure, nature attractiveness, basic infrastructure and attractiveness, planning phase, process phase and presentation, evaluation phase, guests and activities. Those steps must be intricately linked and those links must be tested in the midst of tourism management. Within the first portion in nature attractiveness this involves the landscaping; ensuring that weather predictions will support the event and protection of monuments both natural and manmade.[12] There must be reason for tourists and visitors at this event including performers, a program or venue and facilities for food, drinks and such that must be inclusive within the project’s development. Media must also be considered in the development in order to ensure that tourists and residents alike will have knowledge of the tourism. With that, planning of the event requires operating and planning capital a budget plan to work within and personnel to assist in managing details. It is only then where the event would be managed. This would include vendors, show presentations, and music and other industries, shops and such. [13]

In this context it is relevant to mention the views of the tourism industry in UK. Harold Goodwin from the Centre for Responsible Tourism, School of Earth and Environmental Sciences, Medway University Campus, Pembroke, Chatham Maritime, in Kent gave a grand view of how local community involvement in tourism around the national parks in the UK would provide both opportunities and constraints. In this treatise, Goodwin explains that, as has been known for some time, national parks would indeed have quite the long history. National parks would also, in fact, have great revenue potential in the draw for tourists to experience the scenery and such. This would also be true for historical monuments including Big Ben and the Tower of London as well as Windsor Palace. The fact that these types of locations are the perfect draw for events gives credence for planning events in the communities which would surround them. Yet, in planning and executing such events, the management team must take into account potential for damage, lost revenues from shops and other businesses, and even the necessity for more policing. [14]There must also be the necessity of ensuring that regulations are being followed as per the government’s guidelines and even the individual township’s guidelines as well. As can be seen, there are many potential avenues that could be overlooked and considered of lesser importance, but to fail in taking a single step toward accuracy could spell disaster for any event. This model can be highly recommended for the HATTA. [15]

In conclusion it should be mentioned that the end word of any industry for gaining mileage in the long run is professionalism. This is one factor that stands apart in this context between the tourism industry of UK and Greece. It would be better for HATTA to follow the UK model along with concentrating on the aspects such as promotion and proper funding through professional approach. [16]

References:

Bell, L; Man and Management Techniques (New Haven and London: Yale University Press. 2006) pp 271-3

Border, S; Human Resource Strategies: Games People Play (Remote Publishing Trust; 2004) pp 375

Cunningham, S A; Introduction to Tourism Management (DLTT Publications Ltd. 2005) pp 24-5

Drake, S; Evaluation of Techniques In Management (ABP Ltd. 2006) pp 153-55

Dos, M; Advent of Motivation (Alliance Publications; 2005) pp 47-48

Dollard, John; Zenith and Zero Point in Tourism Management (New Haven and London: Yale University Press. 2004) pp 116-7

Goddard, J; Tourism Management: Making the Most Out of It (Howard & Price. 2006) pp 433-5

Knott, P; Development of Management as a Science (Dasgupta & Chatterjee 2005) pp 188-9

Kumar, H; Win Some, Lose None (HBT & Brooks Ltd. 2005) pp 334

Manning, C S; Principals and Practices: Tourism Resources Today (National Book Trust. 2004) pp 279

Brundage, C; Management Techniques: Tourism (HBT Publishers Pvt. Ltd. 2000) pp 145-7

Prawer, H A; Greek Kingdom: A Tourist Guide (Allied Publishers 2004) 221-5

Powell, M; Anatomy of Tourism Management (ABP Ltd 2001) pp 49-53

Gervers, V; Second Honeymoon: Destination Greece (HBT Publishers Pvt. Ltd. 2000) pp 17-22

Tyerman, J; Invention of the Tourist Spots (Allied Publications 2001) pp 233-37

Goodwin, Harold; Local Community Involvement in Tourism around National Parks: Opportunities and Constraints; Centre for Responsible Tourism, School of Earth and Environmental Sciences, Medway University Campus, Pembroke, Chatham Maritime, Kent UK; 2006; retrieved on 19.05.2007 from http://www.channelviewpublications.net/cit/005/0338/cit0050338.pdf

[1] Knott, P; Development of Management as a Science (Dasgupta & Chatterjee 2005) pp 188-9
[2] Tyerman, J; Invention of the Tourist Spots (Allied Publications 2001) pp 233-37
[3] Border, S; Human Resource Strategies: Games People Play (Remote Publishing Trust; 2004) pp 375
[4] Goddard, J; Tourism Management: Making the Most Out of It (Howard & Price. 2006) pp 433-5
[5] Prawer, H A; Greek Kingdom: A Tourist Guide (Allied Publishers 2004 221-5
[6] Gervers, V; Second Honeymoon: Destination Greece (HBT Publishers Pvt. Ltd. 2000) pp 17-22
[7] Manning, C S; Principals and Practices: Tourism Resources Today (National Book Trust. 2004) pp 279
[8] Kumar, H; Win Some, Lose None (HBT & Brooks Ltd. 2005) pp 334
[9] Bell, L; Man and Management Techniques (New Haven and London: Yale University Press. 2006) pp 271-3
[10] Cunningham, S A; Introduction to Tourism Management (DLTT Publications Ltd. 2005) pp 24-5
[11] Brundage, C; Management Techniques: Tourism (HBT Publishers Pvt. Ltd. 2000) pp 145-7
[12] Dollard, John; Zenith and Zero Point in Tourism Management (New Haven and London: Yale University Press. 2004) pp 116-7
[13] Powell, M; Anatomy of Tourism Management (ABP Ltd 2001) pp 49-53
[14] Dos, M; Advent of Motivation (Alliance Publications; 2005) pp 47-48
[15] Goodwin, Harold; Local Community Involvement in Tourism around National Parks: Opportunities and Constraints; Centre for Responsible Tourism, School of Earth and Environmental Sciences, Medway University Campus, Pembroke, Chatham Maritime, Kent UK; 2006
[16] Drake, S; Evaluation of Techniques In Management (ABP Ltd. 2006) pp 153-55

Cite this Macroeconomics article: the failure of greek tourism industry

Macroeconomics article: the failure of greek tourism industry. (2016, Dec 19). Retrieved from https://graduateway.com/macroeconomics-article-the-failure-of-greek-tourism-industry/

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