Yet, There Aren't Only Pink Clouds in Tourism - The Case of Kefalonia and Ithaca

The 2024 tourism season in Kefalonia and Ithaca presents a complex picture, with several positives but also ιserious challenges affecting workers, businesses, and the local community as a whole. Behind the postcard-perfect image of crowded beaches, luxurious accommodations, and thousands of arrivals, lies a reality that is very demanding for local residents, workers, and tourism and catering business owners.

To lay the groundwork for this discussion, the tourism season seems to be ending on a positive note regarding arrivals. However, the rising number of visitors should not be evaluated in isolation from other factors. Specifically, according to the president of the Kefalonia and Ithaca Hotel Association, Gerasimos Timotheatos, "the data we use to evaluate whether a year is better than the previous one or not are the international and domestic flight arrivals, which show a huge increase in summer compared to winter. The numbers from international flights show that by August, Kefalonia had about a 2% increase compared to last year."

It’s worth noting, as Mr. Timotheatos points out, that since 2011, Kefalonia has been recording steady increases. "Back then [2011], we had almost 175,000 arrivals throughout the season, and last year [2023] we recorded 360,000 arrivals. So, we are satisfied with the visitors who have come to Kefalonia, but hotels do not fully benefit from this increase. As a result, hotel occupancy remains at the same or perhaps slightly lower (1-2%) levels compared to last year." This discrepancy between the decrease in hotel occupancy and the increase in visitors is covered by other types of accommodations, particularly short-term rentals. Specifically, "short-term rentals are a huge issue, as according to SETE [the Greek Tourism Confederation] data for July 2023, Kefalonia had around 6,500 short-term rental accommodations, which equates to about 26,000 beds. This means that these accommodations are essentially missing from the long-term rental market, creating housing problems for teachers, students, and citizens in general," Mr. Timotheatos explains.

A similar picture is painted by Dimitris Atsaros, president of the Federation of Tourism Accommodation Entrepreneurs of Kefalonia and Ithaca</b. He says, "this year's tourism season will generally close with a 4-5% increase compared to last year/b>, which translates to about 380,000 arrivals at the international airport, excluding domestic tourism. Both in July and August, we had about 90,000-92,000 arrivals from abroad, with a significant portion, around 65-68%, coming from the UK market."

However, according to Atsaros, "the issue we noticed this year, concerning tourist accommodations (rented rooms, apartments, holiday homes, and EOT-licensed villas), is that those who operated independently, without agencies or tour operators, saw a 20% drop compared to last year. This is due to the surge in short-term rentals. and the general European economic crisis.. So, while the number of visitors increased, their spending decreased by 10%. In other words, we may have had more visitors, but they spent less." Additionally, major tour operators purchased almost all the tickets from low-cost airlines, integrating them into holiday packages, leading to a shift towards all-inclusive packages that limit local spending.

Focusing more on short-term rentals, Mr. Atsaros mentions that "we have about 1,000 accommodations in Kefalonia and Ithaca, mostly small family units with 6-8 rooms, representing about 20,000 beds. However, short-term rental beds have now exceeded those in hotels and rented rooms." He also highlights the housing crisis caused by short-term rentals and stresses the importance of fair competition between all types of accommodations to ensure the viability of local businesses, particularly small and medium-sized enterprises, which are the backbone of the local economy.

Besides the issue of short-term rentals, Atsaros points out serious infrastructure problems on the island, affecting both tourism and overall development. Kefalonia’s road network remains in poor condition, with many roads lacking basic infrastructure, such as safety barriers or adequate lighting. This issue affects both tourist areas and residents’ daily lives. The same traffic problems are echoed by Mr. Timotheatos, who notes the frustration of locals with the island's traffic situation. Moreover, he is skeptical about whether local transport services, such as the KTEL bus routes, are effective. He also mentions the water shortages that plagued several areas of Kefalonia during the summer, significantly disrupting daily life.

Challenges Faced by Tourism Workers

Tourism is always demanding for workers, according to Angeliki Konstantopoulou, president of the Kefalonia and Ithaca Tourism and Catering Workers’ Union, "Saint Minas. " "Work intensification with endless overtime and continuous weeks of work without days off is now the rule, not the exception, while working conditions are often unacceptable, with a lack of adequate safety and hygiene measures, leading to workplace accidents," Konstantopoulou stresses. Regarding livelihoods, she points out that "although wages seem to be improving, they are not enough to offset the rising cost of living, especially given the short duration of the tourist season in Kefalonia and Ithaca."

However, the signing of a local collective labor agreement with the Kefalonia and Ithaca Hotel Association will provide significant relief for workers on the islands, securing their labor rights, Konstantopoulou says. The signing of this agreement has been a key goal of the union, and according to her, and echoed by Spiros Kampitsis, president of the Kefalonia and Ithaca Labor Center , it would set clear terms for wages, shifts, days off, and job roles, ensuring better working conditions.

Additionally, Kampitsis mentions that labor intensification affects not only tourism and catering but also other sectors impacted by the tourism season, such as delivery workers and builders, who are forced to work long hours without days off and with stagnant wages. He also highlights the increase in workplace accidents this year, which is attributed to the intensification of work and lack of safety measures. At the same time, the local labor inspectorate in Kefalonia remains understaffed, with only one employee, and workplace inspections are minimal.

In conclusion, the tourism industry in Kefalonia and Ithaca holds potential for sustainable growth and prosperity, but coordinated actions and strategies from all stakeholders are necessary. With proper regulation, fair working conditions, infrastructure upgrades, and the development of alternative forms of tourism, the islands can maintain a high standard of service while ensuring the sustainability of the tourism model and the local community.

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