Greece's Financial Crisis - How Will it Affect Your Travel Plans?

The Greek financial crisis

 is everywhere in the news as the European Union looks for coping strategies and international stock markets are affected.

While Greece's economy is not that large by comparison to many other European countries, it is the first to apparently truly fail since becoming a full Euro-using partner in the European Union,


 with Portugal, Ireland, and Italy also considered to be at risk.

As the Greek crisis now lumbers toward its third year, the world is watching to see how Greece handles its financial crisis and to see what the European Union does to contain, control, or ease it. Another deal in March 2012 restructures and cancels some of the debt, and if completely approved, probably means a better, more stable atmosphere in Greece as we move farther into 2012.

But for most About Greece Travel readers, the big question is: How does the Greek financial crisis affect my travel plans for Greece? The Bright Side:

 A Better Euro Exchange Rate for Travelers to Greece - MaybeFor many world currencies, the exchange rate on the Euro is improving in their favor relative to recent rates. This means a cheaper vacation all around.

While some wonder if Greece will be able to hold on to the Euro if they can't get the finances in order, it is very unlikely that any drastic change in the currency will occur in the remainder of 2011...and that was my opinion for 2010 as well. While I still think it is unlikely, it cannot be completely ruled out for 2012, but the new deals in October 2011 and March 2012 probably mean the Euro in Greece is safe... if the current turmoil in Greek politics allows it to move forward.

Struggling Greek Hotels and Tavernas May Delay Opening

Will prices be cheaper? They were in 2010 and early 2011, but I expect prices to be strong in 2012 as it is still expected to be a reasonably busy year for tourism in Greece, though there is a strong drop in the number of bookings from German tourists, who feel ill-treated in the wake of the financial crisis. And even in previous tourism crises, I've noticed that some hotels and restaurants shift into a "grab every penny" mode and resist discounting for the few clients they have, while others will wheel and deal with you. In 2011, some spots such as..... tinos ,Kos, Rhodes, Corfu, Santorini and Crete are reporting increases over 2010, but much of Greece was still quieter than the norm of a few years ago. Increases in world fuel prices and the economic problems in the rest of the world have also contributed to this, and the effect of Mid-East unrest, while it sent some vacationers to Greece instead, has also simply kept others at home waiting for a calmer year. It pays to negotiate prices, but don't get discouraged - it won't work everywhere.

The Bright Side: 

Lighter Crowds, Lower StressWhile Greece enjoyed an upsurge of plenty of extra tourists in 2011, I don't expect it to be busier in 2012. With the ongoing world economic downturn, tourism to Greece may decline, though Greece is receiving many visitors from China and newly wealthy former Soviet bloc nations. But in general, you're much less likely to face massive crowding at the monuments and attractions. And this in turn leads to less jammed hotels and tavernas, which may mean that the owners have more time to relax and chat with the guests they do have. And this may translate into an even more memorable and pleasant trip for you, at a bargain price.

Bottom Line: Still Go to Greece. You'll have a wonderful time - maybe an even better trip than in a "normal" year.