EASYGROUP chairman Stelios Haji-Ioannou is to register up to $400 million worth of ships under the Cyprus flag for cruises around the Greek islands, reports said yesterday.
In an interview with Reuters in Athens, Haji-Ioannou said the market value of the order was $400 million, “but obviously we got a better price than that.”
The new vessels, which will be Cyprus-registered, will be deployed on three and four day cruises around the Cyclades islands, such as Mykonos, Syros and Santorini, marking a major investment in Greece’s tourism industry, Haji-Ioannou said.
The first two ships are expected to be delivered in 2008 and the next two a year later.
Haji-Ioannou was in Athens to sign a letter of intent with Greek shipbuilder Neorion Holdings for the construction of two, 500-passenger cruise ships with an option for a further two vessels.
The son of a Greek Cypriot ship owner, Haji-Ioannou turned his back on the traditional family business in the mid-1990s to found the no-frills easyJet airline.
But he said he saw fresh prospects in the Greek cruise market and would use his new ships to tour smaller and more picturesque ports, letting his clients spend more time and especially evenings on land.
“We believe the enjoyment, the holiday experience comes from the destination, not so much from cruising. We’d like to go to smaller places that are more interesting,” he said.
The four new ships mark a major expansion in easyCruise’s current fleet of just two vessels which entered service last May on the French riviera. The two existing ships, easyCruise1 and easyCruise2, are designed to carry just 170 and 100 passengers respectively.
“Tourism by cruise ship has been neglected in Greece for too long. There were too many obstacles,” said Haji-Ioannou. “But it’s beginning to look like some obstacles have been removed.”
With its white-washed villages and sunny Aegean islands, tourism is a major source of foreign exchange and tax revenues for the country, accounting for about 15 per cent of gross domestic product and more than a sixth of total employment.
But investment in Greek tourism remains hobbled by bureaucracy, restrictive regulations, highly seasonal demand, and a relatively concentrated number of destinations.
“In general, the government is very supportive of investment in tourism,” Haji-Ioannou said. “The project touches anything from tourism to the merchant marine sector, to shipbuilding, to export credits.”
In a separate statement, Finance Minister George Alogoskoufis hailed the deal between easyCruise and Neorion.
“The deal proves that the economic environment in Greece is attractive to making big investments,” he said. “This specific investment will enhance both the tourism and shipbuilding sector and be a positive development for the Greek economy.” (R)
