Will Reopened Beaches in Greece Lure Tourists, Investors?

A return to the beach in Greece could boost tourism and the economy at-large through the Global X MSCI Greece ETF (GREK).

This past weekend, Greece eased its Covid-19 restrictions with the anticipation of more tourists heading to the country’s shores. It’s a positive sign for a country where tourism accounts for about 20% of the economy.

As expected, the pandemic last year hurt tourism, so Greece is banking on its beaches to bring back the crowds. Greek Prime Minister Kyriakos Mitsotakis noted that a combination of widespread testing, immunization, and outdoor activities would help bring tourists back.

“We’re pinning our hopes on tourism,” said Nikos Venieris, “who manages a sandy beach in the seafront suburb of Alimos, just outside the capital, Athens, where social distancing measures will remain in place,” per a Reuters report.

“We’re one of the places along the Athens riviera … that receives many tourists so the number of visitors from abroad will play a big role in our finances,” he added.

GREK seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the MSCI All Greece Select 25/50 Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) based on the securities in the underlying index.

GREK Chart

A Plan of Action

Last month, Greece unveiled a plan of action for its economic recovery. Greece’s post-pandemic plan, dubbed “Greece 2.0” was submitted the European Union for approval for funding.

Greece’s government also introduced several projects that would help spur its economy further. Among the proposed projects include plans to expand green energy, upgrade digital infrastructure to boost high-speed internet connections, as well as shore up the country’s road and transport infrastructure.

“Our National Recovery and Resilience Plan ‘Greece 2.0’ was submitted to the European Commission last night. The Plan includes 106 investment programmes and 67 reforms that are accurately described and costed in 4,104 pages. Greece, which thanks to the negotiation made by Prime Minister Kyriakos Mitsotakis, has gained the most resources, per capita, in Europe from the Recovery Fund, is the second country to submit its final plan,” said Αlternate Finance Minister Theodoros Skylakakis.

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