Title: Determinants of profitability in the Greek tourism sector - assessing the effect of the crisis
Authors: Anastasios Magoutas; George Papadoudis; George Sfakianakis
Addresses: Hellenic Open University, Parodos Aristotelous 18, 26335, Patra, Greece ' Hellenic Open University, Parodos Aristotelous 18, 26335, Patra, Greece ' Central Greece University of Applied Sciences, Psachna, 34400, Evia, Greece; Hellenic Open University, Parodos Aristotelous 18, 26335, Patra, Greece
Abstract: This paper aims at revisiting the determining of profitability empirical literature using an extensive sample of Greek tourism enterprises for the 2005-2014 period. Specific emphasis is placed on the effect of the recent economic crisis and how it has affected the aforementioned determinants. The results of the paper broadly corroborate previous findings; however, one of the main results regarding the crisis is that capitalisation seems to be affecting profitability in a negative way in the post-crisis period. Also, additional conclusions can be drawn from our results regarding economic policy: it is indeed the case that an important sector such as tourism could push growth through multiplier effects, but securing adequate financing at a lower cost is probably the key to this development.
Keywords: tourism; determinants of profitability; panel data; Greece; economic crisis.
International Journal of Tourism Policy, 2018 Vol.8 No.1, pp.65 - 72
Received: 20 Aug 2016
Accepted: 29 Jun 2017
Published online: 05 Mar 2018 *