27-06-2008

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4 Facts & figures Coast to coast Greece has a coastline of 13,780 kilometers, including 6,000 islands and islets. By the sea Thirty-three percent of the Greek population lives in coastal cities or villages not more than 2 kilometers from the coast. Busy ports Eighty-six million passengers transited through Greek ports in 2005 and goods handled in all Greek ports amounted to 151 million tons. According to Eurostat, 7.65 million people, excluding cruise passengers, transited Greece’s main ports in 2007. Top destination Greece is ranked 15th worldwide as a tourist destination. Tourism contributes more than 18 percent to the annual gross national product, generating approximately 20 percent of employment. Tourism jobs Coastal tourism employs 195,739 people. Livelihoods Shipping provides 30,920 jobs (with another 200,000 indirectly), according to figures from the European Commission’s Fisheries and Maritime Affairs Directorate-General. Big business There are at least 110 passenger ferries, owned by some 25 companies, conducting trips to Greek islands, according to estimates by the Hellenic Coastal Shipowners’ Union (EEA). The EEA also estimates that some 10,000 people are employed by its members. Ferry vs airplane The high-season price for a car ferried one-way between Piraeus and Hania is 95 euros, whereas between Patras and Ancona it is 106 euros. Passenger rates on the Piraeus-Hania route range between 33 and 99 euros (from deck seat to luxury cabin) and between 70 and 335 euros on the Patras- Ancona route. An airline ticket between Athens and Hania is about 115 euros. BY STELIOS BOURAS A price freeze by some of the country’s largest ferry operators is expected to make traveling on Greek seas more attractive this summer, but ongoing problems in ticket distribution and ferry routes may still leave consumers shortchanged. Greece’s tourism industry is being tested as a global economic slowdown weighs on travelers’ purchasing power, already been hurt by rising inflation. The sector, which drew 17 million visitors to the country last year, is expected to see a 5 percent drop in arrivals in 2008 with many travelers opting for cheaper holidays in neighboring destinations such as Turkey. In a bid to hold onto its customers, two of Greece’s largest ferry operators, Blue Star Ferries and Minoan Lines, have announced they will not up ticket prices this year and will themselves shoulder the cost of soaring fuel prices. Blue Star, which commands about a third of the Greek market, said the step demonstrated the sense of “responsibility” it felt toward its passengers, clarifying that it will hold off on price hikes this summer after upping fares in November last year. In its domestic market segment, Blue Star travels to the Dodecanese and Cyclades islands. Minoan Lines, which has a 33 percent stake in domestic ferry operator Hellenic Seaways, matched the offer and went one step further, cutting fares to Crete by between 20 and 50 percent for cabins, VIP seats and motorcycles. “It is a step forward for competition,” the president of the Hellenic Association of Travel and Tourist Agencies (HATTA), Yiannis Evangelou, told Athens Plus.Rising oil prices have put a financial strain on operators, for whom 70 percent of costs comprise fuel expenses. The growing pressure has prompted some operators to request government intervention to avoid terminating a number of less profitable routes that will leave some islands isolated. “The government needs to step in with a fuel subsidy to keep ferry lines to the islands open,” Giorgos Vernikos, vice president of the Association of Greek Tourist Enterprises (SETE), told Athens Plus. Others explained the price war in terms of a strategic move aimed at squeezing out the market’s smaller ATHENSPLUS • FRIDAY, JUNE 27, 2008 ISSUE OF THE WEEK Ferries face challenge of growing costs Decision by two leading operators to refrain from price hikes may boost passenger traffic as sector struggles under burden of rising fuel price Mixed bag Passengers may benefit from cheaper tickets this year but there are no signs of problems with distribution and routes going away TICKET CONFUSION The selective distribution of tickets to travel agencies and a low number of ferry operators with itineraries to some islands have long been a feature of the country’s sea transport system, much to the frustration of travelers. It is not uncommon to find one agency telling travelers that tickets for a certain destination are sold out while its competitor next door offers the public the exact same fare. Ferry operators may exploit this distribution method to serve their own market needs in an unfair system that can be costly and time-consuming for travelers, who are provided with inadequate information. “We need to set up a ticket distribution system, one similar to that used for flights, in order to protect the consumer,” said HATTA’s Evangelou. Other complaints relate to the low number of ferries traveling to less commercial islands such as Kythnos, Serifos and Tinos, leaving residents and visitors to scramble for tickets. “We can’t always have tickets available. The issue is how ferry operators meet the needs of the islands. Islands such as Paros and Myconos can’t complain,” added Evangelou. Delays on ferry trips are among the most common complaints as departure times can be put back by anything up to 15 hours. The Merchant Marine Ministry has at times stepped in and fined operators for failing to inform passengers about delays in good time, but such measures appear to have had only limited impact. players who do not have the capital backing to match the fare freeze. “We need to be aware that in times of crisis some operators can gain a comparative advantage,” added Vernikos. Difficult market conditions have forced some ferry operators to accept poor earnings for the year and instead seize the opportunity to move ahead with decisions on a strategic level. Blue Star, whose passengers in the Greek market in 2007 reached 3.2 million, expects volume to grow by 5 percent this year after expanding by almost 2 percent last year. This is a relatively strong growth rate, bearing in mind the broader tourism sector is expected to shrink this year. Concern that larger companies will use financial muscle to increase their market share comes at a time when rumors of price fixing in the sector are rife. The government is said to have recently launched an investigation to ascertain whether companies were indeed adopting such illegal practices. The rising cost of fuel has had a negative impact on the sector’s underlying financials, with many companies having already failed to stay out of the red. There has been some consolidation, with changes such as Italy’s Grimaldi Group becoming the largest shareholder in Minoan Lines in January for about 100 million euros. Market sources, however, have played down the possibility of further changes, saying conditions are not ripe for merger activity. New ships, with focus BY NICK MALKOUTZIS The image of the proverbial rust bucket setting sail from Piraeus for an island is one that is gradually disappearing from the Greek coastal shipping scene but worries about the safety of some vessels have not necessarily taken the same route. Although many ferry companies are introducing new ships to their fleets, concerns about the safety of older vessels are still being voiced. Passengers often complain about the safety and hygiene standards on some aged ferries, which are notorious for having run-down facilities and being unreliable. The sinking of the Sea Diamond cruise ship off Santorini last April, which left two people dead, and the rescue of more than 300 people from a tour boat that ran aground off Poros have brought the issue of safety at sea back into the spotlight. The issue had been at the center of public debate following the sinking of the Express Samina ferry off Paros in September 2000, which cost the lives of 82 people. This prompted the government to introduce in 2001 tougher laws that prevented ferries from sailing once they had been in operation for 30 years. However, an amendment was introduced two years ago that allows well-maintained ships to stay in operation for longer. The Panhellenic Union of Merchant Marine Engineers (PEMEN) has been prominent in voicing concerns about standards on older ships and lodged an official complaint in February about the safety on some ferries. PEMEN official Isidoros Makras told Athens Plus that international regulations require all passengers to be evacuated from a ferry in distress with-
Law amended A law passed in 2001 banned ferries from being in operation for more than 30 years. This was amended in 2006 in 30 minutes but he suggested that many Greek ferry companies only pay lip service to this regulation. He claimed that crews do not carry out proper evacuation drills. “Ferry companies must adapt to the international rules on evacuation, not just rely on old Greek laws,” said Makras. He also expressed concern about the adequacy of the buoyancy aids (lifesavers) on some vessels. Makras says that this only applies to some 15 ships sailing relatively short distances in the Saronic Gulf and from the ports of Rafina and Lavrion. These concerns were dismissed by the Passengers are likely to benefit from cheaper tickets this summer but there are still concerns about the ticketing system. [Eurokinissi] on passenger safety Masters and Mates Union (PEPEN), which told Athens Plus that Greek coastal shipping is perfectly safe. “The ships are safe, some might be of a certain age but that doesn’t mean they’re unsafe,” said PEPEN general secretary Achilleas Tarlamis. He said that crews are adequately trained and drilled. Tarlamis added that all ferries pass safety checks, are issued with the appropriate certificates and are captained by experienced Greek captains. Blue Star is one of the companies that has been renewing its fleet and also feels that PEMEN’s fears are largely unfounded. “We have the highest standards of safety and operate new ships that conform to international regulations,” Dionysis Thedoratos, commercial manager and spokesman for Blue Star, told Athens Plus. ATHENSPLUS • FRIDAY, JUNE 27 , 2008 ISSUE OF THE WEEK Islands push for shipping connections Companies reluctant to serve ports on ‘unprofitable routes’ BY NIKI KITSANTONIS For years authorities and residents on several of the smaller Aegean islands have protested about infrequent coastal shipping connections to the country’s major ports, a shortfall that affects local businesses and deliveries and leaves locals with a sense of abandonment. Last summer several islands staged protracted protests, some blockading their ports, eliciting pledges from the government that things would be better this year. But are they? Officials struggling to boost ferry connections to dozens of neglected islands told Athens Plus that the situation is going from bad to worse. “Ferry connections to these islands are down by 10 percent this year following several years of steady cutbacks,” said Eleftherios Kechagioglou, the president of the Hellenic Small Islands Network, a non-governmental body affiliated with similar European associations that aims to avert the isolation of small islands. Kechagioglou’s association represents about 100 of the Greek islands, all with fewer than 5,000 residents each. The biggest burden is borne by the islands on the so-called “agoni grammi” (or “unprofitable routes” which shipping firms are reluctant to service due to their small populations and low tourism activity). But similar problems are faced by small islands near the border with Turkey, such as the Leipsoi island group whose residents last year boycotted general elections to draw attention to their problem. “There is not enough media coverage of this problem – a small flood in Vouliagmeni is presented as far more important than the fate of an isolated island,” Kechagioglou said, referring to an Athenian seaside suburb. Most of these neglected islands are only served by ferry a few days each week, despite persistent calls for a daily connection. The chief problem, local authorities say, is that the subsidies handed out by the central government to shipping firms to serve these routes – some 75 million euros this year – are inadequate. As a result subsidized services can only be provided a few times a week. But this is not good enough, islanders say. “The problem is that central authorities do not understand our situation,” the mayor of Kythera, Theodoros Koukoulis, told Athens Plus. Koukoulis said a daily link to Piraeus was less crucial than a dai- Some islanders feel that there are not enough ferries connecting them with the rest of the country. [ANA] ly ferry connection to the Peloponnesian port of Neapoli. “We need a local ship that will be subsidized seven days a week for supplies to be delivered regularly and for people to feel secure – to know that there is a lifeline to the mainland,” he said. The island has a vessel to conduct these trips but it is only subsidized three days a week in summer. “In winter things are far worse – we have two connections a week, if that,” he said. Airplane connections in general are more regular, with many islands Feeling neglected Subsidized ferry services can only be provided a few times a week but islanders say this is not good enough enjoying a daily service in summer and up to five flights a week in winter. The airplane connections are well subsidized, with tickets from Athens selling for about the same price as those for a journey by high-speed ferry to the same destination. Another problem faced by many island authorities, as highlighted by Koukoulis, is the delay in the announcement of ferry timetables – the schedules for this summer were made public last week – which has dealt a strong blow to local tourism. “We saw a 95 percent drop in tourism revenues over the Whitsun (or Pentecost) weekend earlier this month,” Koukoulis said, noting that the island’s foreign tourists generally book early for their summer trips. “But how can they book ahead when the timetable comes out in mid-June?” he remarked. Many local authority officials, including Koukoulis, believe that the government is being subjected to pressure by large shipping firms which prefer to operate fewer routes to the smaller, lower-profile islands, particularly in the summer when the bulk of tourists head for a handful of islands in the Aegean and Ionian. There is also the issue of the availability of vessels to serve these routes. In some cases, including those of Tilos and Symi, island authorities have given up waiting for support from the central government and have purchased their own ships. But the problem is not confined to remote islands. “For the first time, we are seeing problems in the Saronic Gulf,” Kechachioglou says, noting that islands close to Piraeus, such as Hydra and Spetses, have not had regular ferries to service them over the past two years. There are high-speed vessels but these cannot operate when winds exceed 4 Beaufort and so the islands are frequently isolated. “This is unacceptable,” Kechachioglou said. The problems faced by Greece’s neglected islands are to be discussed during a two-day conference on “Territorial Cohesion and Insularity,” jointly organized by the Greek government and European Commission regional officials, which starts on the island of Kos on Saturday. 5
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27-06-2008

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