Policy Responses to Critical Issues for the Digital Transformation of Tourism SMEs: Evidence from Greece

Abstract

Digitalization affects all links in the tourism value chain, as it transforms the way businesses communicate with tourists, creates new business models, and introduces innovative tourism products to the market. However, tourism businesses present a varying degree of digital transformation, depending on the size and type of business. Tourism SMEs are struggling to remain competitive and reap the benefits of digital transformation. Empowering tourism SMEs in the digital age is increasingly becoming a strategic priority for governance. However, research on policies to enhance the digitalization of tourism SMEs is limited. The paper attempts to fill this gap. Based on a review of official policy documents and governmental and industry associations’ sites, it looks into ongoing policy initiatives in Greece to support the digital transformation of Greek tourism SMEs at a national level. Desk research was coupled with in-depth interviews, conducted in autumn 2019, with key informants in Greek tourism industry associations and in the tourism departments of Regional Authorities. Policies to build digital skills, to support start-ups and bring innovation to the market, to enhance e-governance, and to provide financial assistance have been implemented in Greece to tackle structural barriers to digital transformation owing to the limited resources, the traditional business model, and the state of ownership (family-run businesses) of Greek tourism SMEs. The aforementioned policy responses are in line with critical issues identified in the academic literature and official policy reports at EU and OECD level concerning the digital transformation of tourism SMEs.KeywordsDigitalizationTourism policiesSMEsGreeceDigital transformationGovernanceJEL ClassificationZ32Z38