by Donald Wood
Last updated: 8:45 AM ET, Mon March 7, 2022
The tourism industry in southern Europe was devastated by the coronavirus pandemic, but hotels and other travel-related businesses are now contending with the issues associated with inflation and the conflict in Ukraine.
According to Reuters.com, tourism officials in Greece, Italy, Portugal and Spain said that while the countries are seeing a much-needed recovery in visitor numbers in 2022, there are still major issues to overcome.
Hotels around southern Europe were already reporting higher fuel bills and inflation before the invasion of Ukraine, but the escalating conflict and the sanctions imposed on Russia are expected to make the situation worse.
Greek tourism confederation (SETE) president Yiannis Retsos said the soaring heating oil, gas and electricity prices make it impossible for hotels to cover their costs. Retsos and other tourism officials are urging the government to provide financial support to the sector.
Another major problem for the hotel industry is the dislocation of labor markets caused by the pandemic, which continues to cause staffing shortages. To combat the problems, officials in Greece have offered refugees fleeing Ukraine residence and work permits to fill 50,000 jobs in hospitality.
While many of the most popular southern European destinations have already reopened to vaccinated international travelers, hotels owners and other tourism industry insiders said the next surge won't come until Easter break. The spring holiday will be a good indicator of what the industry can expect this summer.
The report also found the market for more modest, small-scale vacations is opening up, with many tourists looking to avoid long-distance travel and favoring stays in rural areas in tents, campers or motorhomes.
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