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INTERNATIONAL HELLENIC UNIVERSITY School of Economics INTERNATIONAL HELLENIC UNIVERSITY School of Economics and Business Administration MSc in Sustainable Development Master The Islands of North Aegean Region: Dissertation Tourism Potential and the Issue of Thesis: Seasonality. Student: Mylothridou Eftychia Supervisor: Dr. S. Kostopoulou January 2014 Abstract This paper examines the North Aegean Island Region, in terms of tourism development and the issue of seasonality that these islands face. The particular nature of the islands seems to lead to seasonal tourism arrivals and has negative impacts on the local economies and communities, on the general environment and the tourism enterprises. Based on an extended research on the tourism development and related issues, the need for examination of the accessibility, progress, competitiveness, infrastructure and similar issues has occurred. A Literature Review on the topic reveals the barrier of seasonality with its intense impacts. The potentials of the Region, and of each island separately, are presented in order to reach a conclusion, on whether there are or not, possibilities for a better future touristic performance in this specific area. The forecasts are positive. After a SWOT analysis, recommendations are given for the next implemented policies and strategies for tourism development. The conclusion is that if there is a sustainable strategic plan, adjusted to each island characteristics and based on the general travelers’ trends, there can be a significant tourism development. The phenomenon of seasonality cannot be totally eliminated, but it can be decreased to a satisfying level. 2 Acknowledgements I would like to express my appreciation to my dissertation supervisor Dr.S.Kostopoulou, for her valuable assistance and guidance throughout this process, and for her overall contribution for the completion of the dissertation. Additionally I wish to express my thanks to the academic staff of the International Hellenic University and especially to my Academic Mentor Dr.G.Banias for his patience, assistance and advice. 3 Table of Contents Abstract .......................................................................................................................... 2 Acknowledgements ........................................................................................................ 3 Chapter 1 – Introduction ................................................................................................ 5 Chapter 2 - Literature review ......................................................................................... 9 General View of Tourism ........................................................................................... 9 The phenomenon of seasonality ............................................................................... 10 Impacts and Implications of Seasonality .................................................................. 13 Regional and Peripheral Destinations ...................................................................... 14 Chapter 3– Methodology ............................................................................................. 16 Chapter 4 – Data Analysis – Findings ......................................................................... 18 North Aegean Region – Numbers and Figures – Seasonality .................................. 18 SWOT Analysis of The Region ............................................................................... 25 Prefecture of Lesvos : Limnos, Lesvos, Agios Efstratios. .................................... 28 Prefecture of Chios : Chios, Psara, Oinousses...................................................... 39 Prefecture of Samos: Samos, Ikaria, Fournoi ....................................................... 45 Chapter 5 –Conclusion and Recommendations ........................................................... 52 References ................................................................................................................ 55 4 Chapter 1 – Introduction Tourism is recognized as one of the main sectors of development in all countries and as a basic source of income, job- creation and wealth. Tourism can affect the image of a country and often influences many national and international policies. The desirable condition, for every country, and in particular for tourism destinations, is to be attractive to tourists, competitive, innovative, to deliver quality services to guests and to increase the market shares on national and international levels. Tourism contribution in the global GDP continues to grow every year. In 2012 the contribution was 9% of world GDP, generating more than 260 million jobs (WTTC, 2013) and the growing rates were higher than other significant industries. There are important challenges for tourism development, such as the current economic crisis, globalization, scarcity of natural resources and seasonality. Destinations need to invest in infrastructure progress, in human resources and in innovation in order to be competitive. Europe seems to be the leader in Travel and Tourism terms. According to the Travel and Tourism Competitiveness Index of 2013, the top ten tourism destinations were: Switzerland, Germany, Austria, Spain, U.K., United States, France, Canada, Sweden and Singapore. Seven of the top ten were European destinations, whilst Greece ranked 32nd. The previous year, Europe, which still suffers from the economic crisis, attracted many tourists from the USA, China and Japan due to the weaker European currency. According to the World Travel Trends Report of 2012, travelers ask for attractive images and stability of the destinations they desire to visit and, in addition, the personal financial power of the consumer is a fundamental factor influencing selection of the destination. Apart from the popular summer holidays in places with extraordinary beaches and clear waters, tourists seek other forms of tourism as well. Tourists crave for authentic experiences in nature, interaction with local communities, and often want to help the protection of the environment of the destination. At the same time visitors need to feel safe and secure. New forms of tourism are being developed, based on the particular characteristics of every destination. It is very important that these new forms can be sustainable, meaning that touristic businesses take into consideration the 5 protection, conservation and preservation of natural, cultural, build environment and the local communities. This new demand by the visitors’ side creates the potential for more destinations to be involved with tourism and create new jobs and income while being sustainable. Europe includes a number of islands that are already, or have the potential to become, tourism destinations. It is estimated that there are 362 European islands with a permanent population of more than 50 inhabitants and another 228 with smaller population (ESPON 2013 Program). Islands seem to be, unfortunately, considered as non-attractive places for permanent residence and to do business. Insularity, remoteness, isolation and smallness are obstacles for the development of many economic activities on islands. Tourism is an industry that can be developed and create jobs and income, nevertheless there are important challenges. Touristic businesses that operate on islands should take into consideration the new trends of travelers, in order to develop new forms of tourism and offer a totally focused and differentiated touristic product to the visitors based on what they seek. Islands have usually rich natural and cultural environment that offers identity and authenticity to each island, as a tourism destination. Accessibility is always an issue when speaking of islands and it depends mostly on weather conditions. Especially for smaller and remote islands, accessibility affects touristic arrivals and creates seasonality in terms of tourism. Greece is one of the popular European destinations. It is famous for its history, culture, the Greek way of life and of course for its islands. The Greek economy is significantly influenced by the tourism performance of the country. In 2013 there was an increase in tourist arrivals and revenues from inbound tourism. It is worth highlighting that arrivals in regional airports of Greece were increased in high levels. For the first semester of the year the rise was 15% more than the year 2008, which is considered a good tourism period for the country. The second semester of 2013 the increase was 17% higher than the same period of 2008 (ITEP, 2013). A general statement for Greece is that during the Spring and Summer months, of every year the touristic movement is more intense due to the weather conditions, which are appropriate for summer holidays. This situation has led to the creation of peak seasons in a plethora of Greek destinations and especially in the islands. The tourism movement seems to be seasonal and it is very common for many places to have a low 6 season wherein tourism enterprises are closed or under-operate. Seasonality has many negative impacts on the destinations, the local communities, the general environment and, of course, on the businesses. Vulnerable to negative impacts of seasonality, and other issues, are the islands due to their particular nature. Islands are usually isolated, small in size and in most cases insufficiently connected with the mainland. Very important is the issue of accessibility, which is insufficient for many Greek islands. During winter months the levels of accessibility to the islands can be dramatically
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