Not the final act of the Greek tragedy

In the last few weeks most people associated Greece with the disturbances in Athens. Crowds on the streets, burning cars, breaking shop windows and strikes. Some tourists even gave up on their holidays in this country. However, such reactions seem to be slightly exaggerated - particularly when it comes to the Greek islands. Things were and still are quite calm in the islands. Unfortunately, some popular resorts have a depressing look about them. An example? The island of Kos. What is striking is the large number of boarded up shops, bars, cafés and hotels. The shop windows, which have been painted white or covered with newspaper, are a reminder that Greece is not doing at all well. But are the closed shops really a result of the crisis?

The capital of the island - the city of Kos - is quite a sad place. The historic monuments (including the 14th century fortress raised by the Order of Saint John) are lost amidst a chaotic sprawl of luxury apartment buildings and hotels. Interestingly, there are few tourists to be seen during the day, but the tavernas, cafés and shops are deserted. Kos does, however, liven up after dark. This is when crowds pour onto the streets and the ugly, concrete houses disappear into the darkness. The monuments, now illuminated, are suddenly spectacular. But even in the very city centre there are shuttered stores. Why? "We are not losing tourists, but they rarely spend time in the city. They lock themselves up in these huge hotels offering all-inclusive service. They are not interested in our culture, cuisine or traditions. It's enough for them to have unlimited food and drinks," complains a local jeweller. He goes on to add: "Unfortunately, we do not get anything out of this because most hotel owners are foreign investors." The owner of a bicycle hire shop strikes the same note: "I met some German tourists today. They have been here for a week and not even visited the city centre. It is sad." I understand the bitterness of the islanders. But on the other hand, there are a lot of places on Kos - even where the expensive hotels have been built - which offend the eye with piled up rubbish, dirt and mess. The islanders are very open, but it seems that nobody has taught them how to make the place more attractive for tourists. Perhaps visitors stay in their five-star hotels not for the free drinks, but simply because it is so ugly outside? What should be done about all this? Is there a way to find investors who will freshen up Greek resorts and restore them to their former glory? International real estate consultancy Colliers International points out in one of its reports that the Greek government has plans to restructure the tourism industry, encouraging tourists to visit the country all year round, not just during the season. The plan involves the development of luxury hotel complexes for affluent clients in the Peloponnese. Colliers insists that there are investors who want to invest in Greece despite the problems the country is facing. But is building fenced-off luxury ghettos the best solution? The experience of Kos indicates that it is not. Perhaps billions of euros of real estate investment is not the way. Maybe it would be enough to tidy a few places up? The new rescue plan for Greece means that the country is to receive a loan of EUR 109 bln from EU countries and the International Monetary Fund by 2014. How did the markets react to the plan? The stock-exchanges have calmed down, and the Swiss franc has weakened. So it seems that everybody can breathe again. However, a large number of economists immediately commented that giving Greece more help is just buying time and provides no solution as to how to save the country from collapse. Only if this is done can Greece repay its debt. It seems that only the politicians are happy with the deal, declaring that the final curtain has fallen on the Greek tragedy. It will be interesting to see what they say in a few months time when it turns out that the latest billions to be pumped into the Greek economy are not enough.