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Athens - Greece's tourism minister promised on Thursday Athens had no plans to curb all-inclusive resorts on its sun-drenched islands, after suggestions new Prime Minister Alexis Tsipras had declared war on the popular packages.
"We don't agree with establishing an 'all-inclusive' resort model, which to a great degree cuts off tourism from local economies," Tsipras said in early December.
But his new tourism minister denied Athens intended to make that its mission.
"There won't be any action against all-inclusive holidays," Elena Kountoura, from the right-wing Independent Greeks party in Tsipras's coalition, told reporters.
"On the contrary, further upgrading the quality of these packages will boost and extend benefits in local markets and communities."
All-inclusive deals that limit added food and bar expenses for vacationers are especially popular among the millions of foreigners who flock to Greece's islands each year. Tourism employs one in five Greeks and accounts for a fifth of the economy.
Some in the industry, including the head of Greece's tourism association Andreas Andreadis, have proposed more flexible models which could tie local restaurants and bars into the package to spread the benefits.
Tsipras's anti-austerity government has sent shudders through financial markets, appearing to take a collision course with European partners who say they will not renegotiate the aid package provided to help Greece pay its huge debts.
"Mrs. Kountoura comes from the Independent Greeks party whose programme is very tourism-friendly," Andreadis told Reuters, noting the party had sought a cut in value-added tax for the industry.
"Syriza's strategy is also in favour of low tax rates to encourage investment."
The only issue vexing the industry was the move to put asset sales on hold since some of them, such as airports and port services, stood to boost the tourist industry, he said. "Apart from the issue of privatisations, we are not worried," he said.
Tsipras's left-wing Syriza party favours boosting domestic tourism, extending the tourist season and examining whether Greece should set up a state ferry line or re-establish its national airline.
"We don't want to continue the current model of intensive tourism exploitation, which is already presenting signs of financial fatigue," Tsipras said last month.
