COVID-19 will cut tourism to Greece this year

Significance

Restrictions on the economy’s vital tourism branch are being lifted. However, airports outside Athens and Thessaloniki stay closed until June 30. Passengers from low-risk countries will be randomly tested for COVID-19. All passengers from high-risk countries, including the United Kingdom, will be tested: if negative, they must self-isolate for a week at their destination; if positive, they face a fortnight’s quarantine in Athens.

Impacts

• Tensions with Italy will persist following a diplomatic row over its inclusion on the list of high-risk countries.
• The expected drop in tourism revenue will reduce the tax take and the chances of scaling back Greece’s high unemployment rate.
• The public healthcare system needs more resources to manage any further waves of the pandemic and complete long-awaited reforms.
• A severe and prolonged economic downturn and a new wave of the pandemic could deplete the political capital the new government has built up.