Greek Tourism has demonstrated resilience in terms of gross profit margin in 2014 compared to pre-crisis 2008, according to a business services group ICAP report published on Wednesday.
The report examines the evolution of company size and results in all sectors through their published balance sheets during the 2008-2014 period and concludes that the ongoing economic crisis in Greece has led to the decline of business activity in terms of figures and growth.
ICAP notes that 2014 marked the end of a downward spiral in tourism since 2009 with total sales dropping by an average annual rate of 2.1 percent between 2008-2014 and reaching 5.4 billion euros in 2014, when the sector returned to profitability, with record profit before tax at 207 million euros.
Adaptability to the new conditions is the main reason for its competitiveness in the given economic climate and, as a result,gross profit margin improved from 22.26 percent in 2008 to 25.91 percent in 2014, due to cost cuts and strong growth in tourist arrivals
Major financial developments in tourist enterprises during the period 2008-2015, are as follows:
Total assets decreased by an average annual rate of 2.8% in the period 2008-2015 and stood at € 17.3 billion.
Total equity decreased by an 1.8% average annual rate in the period 2008-2014 and was limited to € 8.4 billion in 2014.
As regards the total bank lending (medium to long-term liabilities and short-term debts to banks), funding decreased with an average annual rate of 4.5% in the 2008-2014 period.
Total EBITDA earnings amounted to € 1.2 billion in 2014, sharply increased in comparison to the corresponding 2008 profits, which showcases tourism as the only sector in the Greek economy attaining improvement.
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