Eurobank: New liquidity package of 750 million euros in tourism

By Leonidas Stergiou

Eurobank announced funding of 750 million euros, consulting and support non-banking services for businesses in the tourism sector for 2022. The goal is to upgrade the tourism product, in parallel with the development of infrastructure, the strengthening of extroversion, the digital and environmental transition. At the same time, access and consulting is provided for co-financed programs and subsidies, but also to non-banking services through third-party partnerships for the promotion, development of e-commerce, etc.

The Deputy Chief Executive Officer of Eurobank Mr. Costas Vassileiou, stated that tourism is a vital sector for the Greek economy and the Bank is committed to supporting businesses, with an already active loan portfolio of over 2 billion euros. In particular, the new support package provides:

– EUR 275 million in loans for the construction of new and expansion of existing units.

– EUR 225 million for the upgrade of new units.

– EUR 250 million for strategic acquisitions and mergers. Already, according to the Bank’s executives, deals are being launched in the hotel sector in Rhodes, Kos, Crete and Halkidiki.

The above amounts have come after a discussion with the Bank’s customers and businessmen in the sector. With these actions, 2000 new rooms are created and 4700 rooms are upgraded.

Investment distribution

Regarding the distribution of investment plans, it is as follows:

– 30% in the Dodecanese,

– 20% in Attica,

– 10% in Crete,

– 9% in Halkidiki,

– 8% in the Cyclades

– 7% in the Ionian,

– the remaining percentage mainly in mainland Greece.

Ecosystem of banking and non-banking services

In addition to financial solutions from the Bank, Eurobank offers a range of support services, with consulting and access to other financing programs and co-financed loans. It offers electronic tools for a company to choose the program it is interested in and to check the eligibility. At the same time, the services are expanded through web banking, which in addition to banking, will offer services to third parties, tourism sponsors, such as promotion, online bookings, etc. This whole grid creates an ecosystem that aims to utilize the available funding, upgrade infrastructure, utilize staff, education, etc.

Trends 2021-2022

According to Eurobank and entrepreneurs in the tourism industry, in 2021 exceeded estimates to cover 40% of revenues in 2019. Already, the revenue trend shows 10 billion euros representing 55% of those in 2019, while the optimistic scenario talks about final revenues of 12 billion or 67% of revenues in 2019. The best performance was presented by the Cyclades and five-star hotels.

In terms of 2022, explosive growth is expected, as 40% of the rooms have already been closed, while, according to companies in the industry, by February 70% of the offered beds will be covered.

Airlines are already announcing an increase in flights from the US and Asia. The general change in consumer behavior observed internationally also contributes to the rise of tourism in 2022. Mr. Walter Lo Faro, Senior Director, Market Management Southern Europe of Expedia, presenting the review of 2021 and the prospects of 2022, characteristically noted that the planning of a trip has become more important than the salary increase, according to a research of the company

2020 package report

18 months ago, in May 2020, Eurobank announced a € 750 million support package, which included:

– EUR 200 million for loan installments for two years. To date, the suspensions concern loans of 190m euros.

– EUR 250 million for working capital. To date, € 230 million has been used.

– EUR 300 million to finance productive investments. To date, 200m euros have been disbursed, as the overall process takes 2.5 years.