Athens: Holidaymakers in the Greek capital on Monday remained optimistic they will not have to change their vacation plans after the country introduced capital controls overnight.
The Greek government has closed its banks for six days and limited Greeks from withdrawing €60 — about Dh250 — a day after the European Central Bank (ECB) froze its liquidity lifeline to Greek banks.
The capital controls do not affect foreign banks cards though by Monday midday Automated Teller Machines in Athens were “out of service” after Greeks emptied their accounts over the weekend. Many businesses have also stopped accepting credit cards in fear of a cash shortage.
There are now concerns that foreign visitors may be forced to cut their holidays short if they are unable to pay for meals and services.
“It is advisable for travellers not to rely on credit cards and take cash in smaller denominations worth of almost a week or more of spending with them,” Alp Eke, senior economist at the National Bank of Abu Dhabi (NBAD) told Gulf News by email.
But Nicky Gorani, who arrived in Athens on Monday from Singapore, told Gulf News he does not believe Greece’s economic woes will hurt his five-day holiday in the country.
However, he did admit he had brought with him more cash than normal for his holiday and would not be relying on his credit card as much.
Steven and Lesley, British expatriates living in Brisbane, Australia, who too arrived in Athens on Monday, said they were not concerned. Unlike Gorani, Steven said he had not brought extra cash and expected to be able to use his debit and credit cards without restrictions.
The introduction of capital controls has come at the start of the country’s important summer tourism season. Tourism directly contributed €17 billion to the debt-ridden Greek economy in 2014, 9 per cent of the country’s gross domestic product (GDP), and as much as €45 billion in indirect spending, according to the Association of Greek Tourist Businesses.
Raff and Chas from Melbourne, Australia, told Gulf News on Monday they were “glad” they would be leaving Greece later that night after being unable to withdraw cash or buy food and petrol on a seven hour drive to Athens a day earlier.
But Marios Goguta, a souvenir shop worker near the famous Pantheon, who warned capital controls will be “bad for tourists”, said Greeks were “overreacting”.
“I also have money in the bank,” he said.
Greece had been teetering towards a default and a possible Eurozone exit for weeks as its government tried to renegotiate more favourable terms with its creditors. The Greek government’s decision to call for a July 5 referendum on the economic policies of its creditors — which could push the country to bankruptcy and out of the Euro — caught many by surprise leading to Greeks emptying their bank accounts and stocking up on groceries and petrol.
"If Grexit happens (Greece exiting the Euro) currency issues aside, there could be more serious consequences. Airport staff may go on strike, borders will be closed, even the government officials may refuse to work and the whole country may come to a halt. It is highly recommended to avoid Greece for the short-term and as for tourists who are currently there, it is time to book a flight out soon," Eke said.