INTERVIEW WITH LABRINI KARANASIOU ZOULOVITS

PRESIDENT OF THE ATHENS AND ARGOSARONIC HOTELIERS ASSOCIATION

– All the stakeholders involved say that 2024 will be one of Greece's best years in tourism. What are your own assessments and how have bookings shaped up in the first quarter of the year? Are there advance bookings for the summer?

As we recently announced in a relevant Press Release based on the data for the first two months of 2024 (note: these are figures compiled by the Athens–Attica and Argosaronic Hoteliers Association in cooperation with GBR Consulting, as the quarterly data will be available after mid-April), it is a fact that hotel Athens is beginning to feel optimistic about a "full return" to normality, with stability, if and as long as we are of course allowed by the "unpredictable factor" (such as, for example, geostrategic, geopolitical, climatic, economic and other developments). According to the data on hotel traffic and performance, two traditionally neutral months such as January and February turned out quite well this year for the hotels of Athens, boosting first-two-month occupancy by 9% compared with the corresponding period of 2023 and giving a very small, but positive, push to prices compared with the corresponding period last year. In Athens, as you know, we rely mainly on online bookings. Athens's consistently competitive prices, as well as the mild winter, with ideal temperatures for the visitor combined with good internal stability on matters that directly or indirectly affect tourism, certainly contributed to the tourist vitality observed in the month of February in the city. What is certain, from the data so far for 2024 and following on from 2023, is that the destination has clearly proved once again that it attracts the visitor even outside the peak period, both as a city-break and holiday destination and as a conference destination, ideal for attracting conferences and business meetings during the winter months. All estimates and indications for the time being suggest that the 2024 tourist traffic has the momentum to develop very well. However, allow me to insist that in the times we are living in, forecasts are something rather risky.

– Athens is considered one of the most attractive destinations worldwide; however, there is still considerable room for improvement in the provision of services relating to accommodation, gastronomy and entertainment. What are your positions and what is it that, in your opinion, should change immediately?

It is certain that the potential of Athens and its islands is inexhaustible. There are many of Athens's "hidden cards", a city which we hoteliers treat as a "unified destination". And when I refer to Athens and its islands, I am referring at the same time to the historic and commercial centre of the city, to the wider coastline of the "Athenian Riviera" as we have established calling it, and also to the islands of our Region, a stone's throw away (50 nautical miles from the port of Piraeus).

Quality accommodation, gastronomy and entertainment, as you very rightly mention, are certainly highly important aspects of the stay, of the trip and of the modern European dimension of hospitality. They play a decisive role in an Athens that is constantly evolving according to European and international standards and trends. Our city is changing all the time, changing every day, changing on every corner, and there is certainly room for an even better and higher-quality offering from the businesses of tourism, accommodation, dining and entertainment. However, based on what our visitors themselves tell us in our annual surveys, the causes, the reasons that function as absolutely decisive for their visit and that call them to return again and again, and which we must not ignore, are not only the modern, bright, visitor-friendly, contemporary capital, but also the timeless historic Athens as the founder of democracy, philosophy, the sciences, the arts, architecture, theatre and culture. The way in which our city combines all the above with modern life is impressive, as is the ability for the visitor to take their swimsuit and, in about one or two hours, swim at a beautiful beach or wander around a picturesque island such as Aegina, Poros, Hydra, Spetses, and others. These things most of our visitors discover upon arriving in Athens, and they certainly constitute our most fundamental comparative advantage over our competitors. We firmly believe that this is a very powerful message that must be fully exploited by those responsible for promotion and advertising, as well as by all those engaged in tourism entrepreneurship. When we promote Athens abroad, we must now all mean the same thing, namely Athens, its seafront and its islands, and yes, this is something we would like to change immediately.

– Short-term rental properties have increased rapidly; how much does this affect the survival as well as the development of hotel units in Athens?

All types of tourist accommodation must and have their reason to exist in a destination, and both hotels of all categories and rented apartments are needed, as of course are short-term rental properties/accommodation that cover different accommodation needs. The latter, moreover, constitute a relatively recent alternative proposal in accommodation, an international trend in tourism that in recent years has grown enormously and developed rapidly, since people rushed eagerly to discover it or even to get involved with it, even "as a business". So far, so good. But this is precisely where, in my opinion, the point worthy of our attention lies. It concerns the Moderation that must be observed and the tourism development strategy of each destination that must be followed so that we are not led to what is called "uncontrolled tourism development" with the well-known consequences for tourism, the economy and society. In theory, all of us who are engaged in, or wish to engage in, tourism in Athens and more generally should know, before every move we make, the "executive plan". That is, what the limit is that we must not exceed, for example in the number of tourist accommodations and beds per destination (carrying capacity), as well as in development philosophy. We must know the "big picture", the plan, the goal, the rules, the specifications and conditions for the operation of businesses, and also the market requirements in proportion to supply and demand. I would say even at the level of demands from society and from the state (taxes, fees, obligations, etc.). All of the above, when they have been anticipated, designed and observed, ensure the harmonious coexistence of us all, without unfair competition, without disturbing the correct balances in supply and demand, without citizens, students, professors and employees being driven out of their homes. In short, limits are necessary, operating rules and controls are also necessary, and they clearly must concern all tourism entrepreneurs and not only hoteliers. The state, for example, must decide clearly whether an apartment building with short-term rental units constitutes tourist accommodation or not, and how exactly it must not only be defined, but also operate. As we also recently pointed out in a relevant statement, much more dynamic next steps are needed on the part of the Government and of local government for the improvement of the conditions prevailing in the field of short-term rental tourist accommodation. At the same time, and especially after the Prime Minister himself acknowledged the "new interventions required in short-term rentals", the issues of stricter control of the legality of this accommodation, as well as control of the quantity and of the quality offered, especially in Athens, are taking on new dimensions.

Interview conducted by: Vasilis Bampaolous General Manager of Arcus Real Estate