Impacts of the refugee crisis on the hotel industry: Evidence from four Greek islands

Abstract

This paper investigates the impacts of the 2015 refugee crisis on the hotel industry on four islands in Greece (Lesbos, Kos, Chios and Samos) and hoteliers’ responses to it. The sample includes 96 accommodation establishments. Findings revealed that the refugee crisis had a very serious negative impact on the hotel industry of the analysed islands and their operational statistics deteriorated significantly. The image of the islands and of the accommodation establishments were hurt as well. The hoteliers preferred to mitigate the negative consequences of the refugee crisis mostly by increased marketing efforts to attract more guests, and cutting costs and prices, rather than by working with fewer employees, delaying payments to suppliers or requiring more cash payments. Managerial implications, limitations and future research direction are also discussed.