VZCZCXRO0545
RR RUEHAG RUEHDF RUEHIK RUEHLZ RUEHROV RUEHSR
DE RUEHTH #0326 0751242
ZNR UUUUU ZZH
R 161242Z MAR 09
FM AMEMBASSY ATHENS
TO RUEHC/SECSTATE WASHDC 3375
INFO RUCNMEM/EU MEMBER STATES COLLECTIVE

UNCLAS ATHENS 000326 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL ECON EFIN ETRD GR
SUBJECT: GREEK TOURISM:RECESSION AND SECURITY THREATEN, BUT 
GOG HAS BIG PLANS 
 
¶1.  (SBU)  SUMMARY: During a call by Ambassador February 23, 
new Minister of Tourism Constantinos Markopoulos expressed 
high hopes for U.S.-Greek relations with the new 
Administration, acknowledged that Greece's tourism sector 
faces difficult challenges in 2009 due to the drastic fall 
off in bookings which started even before the financial 
crisis erupted in 2008, and laid out a number of measures his 
Ministry is planning to promote Greece as a tourist 
destination. These measures include lowering taxes and fees, 
building partnerships with European air carriers, and seeking 
to host high visibility events such as international yacht 
races and Hollywood film productions.  Markopoulos plans to 
visit Washington in mid-April "after the PM's visit" on a six 
city tour.  Ambassador noted that all Markopoulis' plans 
could come to naught if the GOG does not get a handle on 
deteriorating public security.  End Summary. 
 
¶2.  (SBU)  Ambassador called on newly installed Minister of 
Tourism Constantinos Markopoulos February 23 to see what 
plans the GOG had to overcome the serious downturn Greece's 
tourism sector is experiencing because of the global 
recession.  Markopoulos acknowledged that Greece's tourist 
sector is facing a severe downturn, which started in 2008. 
(Note: the problems of the tourism sector, which represents 
15 percent of Greek GDP, have been prominently reported in 
the Greek press, with some stories reporting that bookings 
from key European markets are off up to 30 percent compared 
with 2007. End note.)  Markopoulos welcomed the opportunity 
to take on this tough challenge. The Tourism Ministry, he 
said, "is like a second Foreign Ministry."  He said he was 
eager to work with the U.S. government and to rebuild 
Greece's reputation as a major destination for U.S. visitors. 
Ambassador noted that to overcome the slump created by 
international economic circumstances Greece would need to 
address a number of obstacles, including a lack of resort 
facilities, golf courses, etc., which are proposed but too 
often stymied by local opposition.   Markopoulos agreed that 
Greece had not developed its full tourism potential, and 
said, "we have a plan to address these things." 
 
¶3.  (SBU)  Markopoulos explained that, in order to reduce the 
cost of travel to Greece, he is proposing that the GOG reduce 
in phases the tax rate for rooms and miscellaneous fees for 
landing at small airports and ports.  (Note: these measures - 
particularly the room tax - are an important source of 
revenues for municipalities, and Athens Mayor Keklamanis has 
threatened to resign if the room tax is reduced.  End note.) 
The GOG, he said, is also planning a promotional campaign in 
cooperation with European air carriers and major tour 
operators. 
 
¶4.  (SBU) In response to Ambassador's question, Markopoulos 
acknowledged that arrivals were off nearly 15 percent in 
2008, with arrivals from the U.S. off over 20 percent.  He 
said the GOG needs to develop a U.S.-specific campaign in 
order to rebuild this market, but his goal for 2009 is simply 
to maintain arrivals at current levels.  For the longer term, 
he had big plans to enhance Greece's image as a tourism 
destination.  These include a plan to reach out to Hollywood, 
while working in Greece to reduce bureaucratic obstacles, to 
encourage major film production in Greece.  This would be in 
the tradition of the 1960s, when Melina Mercoury helped raise 
interest in travel to Greece.  Markopoulos was also in 
discussions that very day with the organizers of the Louis 
Vuitton Cup yacht race to host it in the Aegean, perhaps as 
early as spring 2010. Furthermore, Markopoulos hoped to enter 
into discussions with the organizers of the America's Cup, 
with an eye to Greece hosting it in late 2010 or 2011. 
 
¶5.  (SBU)  Markopoulos hoped to present his plans to U.S. 
interlocutors during a six-city tour which he was planning 
for mid-April, "after Prime Minister Karamanlis' visit."  He 
would launch the trip in Washington DC, with a speech at the 
Woodrow Wilson Center.  Ambassador welcomed Markopoulos' 
ambitious plans and offered Embassy support for his trip 
planning.  Ambassador cautioned, however, that it is 
difficult to see how Greece will attract visitors with press 
reports of riots and car bombs.  All of these plans would be 
put at risk, he said, if a bomb the size of the car bomb that 
failed to detonate in front of the CityBank branch office in 
late February were to go off. 
 
SPECKHARD