German Tour Operator Prepares for Greek Euro Exit; Greece to Become Tourist Mecca as Soon as it Scraps the Euro

Inquiring minds will note that the German tour operator Tui is taking measures to protect itself from a Greek exit from the Euro and subsequent currency meltdown.

Please consider Tui prepares Greek hoteliers for possible euro exit

German tour operator Tui has asked hotels in Greece to sign new contracts spelling out how the company will pay its bills if Greece leaves the eurozone and starts using a new currency.

A spokesman for the company confirmed it had written to hoteliers after the letter had been reported in German newspaper Bild.

In the letter, Tui said it was entitled to pay in whatever currency was in use.

But the Greek Tourist Board said that no hotelier would agree to that.

Bild quoted the latter as saying: "If the euro should no longer be the currency... Tui is entitled to pay the sum of money in the new currency. The exchange rate shall be made at the exchange rate set by the government."

Tui spokesman Robin Zimmermann confirmed the letter had been sent to hoteliers, saying: "As a responsible company, we should protect ourselves for a potential exit of Greece from the eurozone."

But Andreas Andreadis, president of the Greek Tourist Board, told Bild that Tui could not pressure hoteliers into signing such a contract.

More than two million Germans traveled to Greece last year, making them the biggest group of visitors there.

Greece to Become Tourist Mecca as Soon as it Scraps the Euro

Would you risk going to Greece now with all the strife, strikes, missed flights, and violence?

Some might but I wouldn't. What if everything in Greece is suddenly 60% lower? Your answer might change (or not) but many answers will change. Yet until it does change, Greece will see cancellation after cancellation of tour operators unwilling to take the chance on Greece.

I do not know what Tui will do. However, if I was Tui, I would immediately cancel all tour operation in Greece. If that happens and other tour companies follow suit, pressure will mount inside Greece to tell the IMF, EMU, and ECB to go to hell.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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