Hotel Occupancy Falls in Athens, Bad Year Ahead

Hotel room occupancy dropped by about 20 percent in the Athens region in the first quarter of 2009, pointing to a bad year and job losses for a sector key to Greece’s economy, the Attica Hotel Association said on Tuesday.

Tourism accounts for nearly a fifth of Greece’s GDP and employs one in five of its workforce, making how it fares crucial as the economy is slowing sharply and may face recession this year.

The Greek economy is expected to shrink in 2009 and 2010 after 15 consecutive years of growth, the IMF said last week, partly because of falling tourist arrivals. Greece’s weather, sun-drenched islands and archaeological sites usually attract about 15 million visitors each year.

The head of the Hellenic Hotels Federation estimated last week that bookings had fallen between 10 and 20 percent for the country overall during Easter, the start of the tourist season.