The advent of low cost carriers for HUB of Salonika and beyond.

Truth and distorted reality- The parameters-

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SPEAKER

Emmanuel A. Gyzis

Emm. Gyzis & Partners Law Offices

“REGION, TOURISM AND AVIATION, Low cost carriers help to boost the Region?”

Ixia, Rhodes, Rodos Palace hotel

October 21, 2011

The big questions about the added (alleged) value of the potential project of Salonika’s HUB

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1. The organized state, with a non- existent, in fact, Ministry of Tourism, is unable to help Tourism operators to establish an advantageous deal for the tourism in Northern Greece with the interested L.C.C. Why?

1. Simply because there is no medium – long term planning.

1. That planning under which the points/ terms to be proposed to the contracting companies will be explained to the region bodies, so that such an agreement will be beneficial for both parties and not unbalanced.

1. But, is there expertise and sufficient willingness to do so?

1. Currently, the substance parameters are lacking, and thus those for the objective accomplishment of the target.

The companies’ competition for HUB of Salonika, and generally for the region

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1. Currently RYAN AIR and WIZZ are interested in Salonika.
2. The first one is a leading L.C.C. and in order to develop a viable agreement for the receptor (our country), it is necessary above all to know professionally the game of HUB.
3. So it is needed to have studied its similar movements in other airports, trans-european, and to know all about the agreements signed there.
4. Does any operator in Salonika, who is going to enter negotiations, know anything about that?
5. Probably not.
6. How will the bodies “enter” to negotiations?
7. Who will provide them with the capability to avoid colonial contracts?
8. May G.N.T.O. , the manpower of the quasi Ministry of Tourism do that?
9. And how? will the onslaught of L.C.C. be dealt also in region generally?

The real reasons/causes which motivate L.C.C. for HUB of Salonika

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1. Mainly the possibility given initially for an interbalkan connection.

2. Following the range in which their medium radius aircraft will sweep most of Europe from Salonika, within a three hours flight.

3. The low fees of this airport.

4. The economy of scale, since there will be a low cost maintenance and also maybe a main transit base.

5. Avoiding the high fees of Eleftherios Venizelos.

6. Other causes, such as the light maintenance/ of the Asian carriers, and their “goal” for the line Athens – Salonika.

Who want, who don’t, and why the HUB of Salonika in Northern Greece

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1. Those who are in favour, most hoteliers and tour operators of the city fight with “bare hands”.

1. Because they have no organised and interactive potentiality.

1. There are some who are against HUB.

1. Maybe 1 -2 big hotel owners who would not want to displease their institutional trading friends and colleagues.

What is the role of Eleftherios Venizelos for such a deal?

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1. The severe conjecture of the negative attitude of “Eleftherios Venizelos” is obvious.

1. Its displacement – traffic will decrease.

1. It will have to compete, lower its rates so as to attract such companies, i.e. L.C.C., which is something that HOCHTIEF wishes not to do, especially at this time.

1. The reason is obvious. They want to leave Greece, also achieving an extension and a favourable price.

1. So why will itself devaluate its status?

The role of the Greek State, it may help the bodies for beneficial contracts with L.C.C. – Related cruise scenarios

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1. To achieve something like that, professionalism is necessary.
2. The current leadership of Tourism has no such expertise.
3. Moreover there is no money to buy such expertise.
4. Thus we are led inevitably to the picture we had of a negligible increase of our Tourism resulting from the “lame” abolition of cabotage on cruise ships.
5. There they are overjoyed with negligible increases, while an “earthquake” of increase of revenue for the Greek tourism should have taken place.
6. But for such infrastructure for cruises cash of 400,0 million dollars is needed.
7. Rather a midsummer night’s dream. And foreign cruise ships will be at Katakolo 140 meters away from the jetty.
8. And in Piraeus the technical reception facilities will be extended with “painkillers”.
9. What is to be expected by that?

Which will be the way forward for the HUB of Salonika – Can it provide benefits and which?

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1. The prospects are few at the present regime of interactive will, ignorance, economic hardship of the country, lack of development of the sector.
2. First of all an independent Ministry of Tourism is required, without the guardianship of the Political Power, which will be staffed by successful management, that will plan the agreements with L.C.C. by a “Business Plan”.
3. In order to achieve the reciprocal benefits for Salonika by the establishing of a HUB there, these must be linked with the infrastructure of the airport, its technical functional improvement, the will for its independent development free from related interests, of other airports, operators or other companies.
4. This state, which is such an omelette with no breaking eggs, is impossible to change.
5. Thus it is unable “ex officio” to create real added value for all Greek Tourism.

Is there any substantial future for investments – partnerships with L.C.C. in Greece?

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1. As demonstrated by all the above, a positive development is extremely difficult.
2. The “cutting” of ties with correlations of interests, which fight with each other, will be the “Gordian knot” for a positive development in this field.
3. As far as the “pathogenesis” remains, as the absence of experts of the total tourist project of this country is strong, so long our country will “see the backs” of its major geopolitical competitors.
4. There will be an “illusion of progress”, which the system of each Political leadership will want to present, it will lose ground,  (witch hunting”) and …. Russian … tourists approx. 500.000, while Turkey has detached a share of 3.000.000.
5. The numbers may be “tentatively” increased, but it will lack those large Geometrical incomes, which this country of a known tourist host, is able and has the capacity to succeed.

THE PRECEPT

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1. Without organised action, without knowledge,
2. By “correlations”, with abortive balances,
3. Without growth, without capital,
4. Without political will,
5. Without incomprehensive and most of the times useless “memoranda of understanding”,
6. Without  “dedicated” people to the tourism project,
7. Without goals, adherence to them, renewal of ideas, with no adaptation to the evolution, that is required by the development of tourism for the alternative tourism, and diverse new actions,
8. Without specific approach of proper new markets and not any in general and abstractly, i.e. Going to China and India without knowing what kind of tourism product these major nations want.

Ultimately without vision, we will always be the poor relatives of the global tourism scene … and not only, at the agreements also with L.C.C.

If we ever decide to replace, among others, the ancient “PALLAS” system, so that the Greek F.I.R. won’t remain “blind”, with anything catalytic that can mean.

Dear friends,

I have tried to convey an unbound, technocratic, “supervisory view” regarding what’s need to be done in this field.

Thank you a lot

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