Athens area hoteliers sign multi-million-dollar agreement for 1,000,000 overnights

Hotel owners in the Athens area signed an agreement worth $100 million for almost 1,000,000 overnight bookings. The agreement, for 25,000 rooms from August 11-31 in 2004<.>, was signed by Athens 2004 Olympic Games Organizing Committee, the leaders of the Athens Hoteliers Association and the Hellenic Tourism Organization.
The aforementioned organization guarantees the committee gets the rooms and that the hoteliers get their money. And to ensure everyone abides by the agreement, Development Minister Evangelos Venizelos said the contract would be sent to parliament for ratification.
This agreement comes after many difficult meetings, said the minister, but I think this is the first time an Olympic Games host country, with the exception perhaps of Barcelona, has managed to guarantee the rooms required by the International Olympic Committee some five years in advance of the Games.
According to the agreement, hoteliers receive an immediate payment of $40 per room. Ten percent of the remaining total will be paid to hoteliers at the end of 2002. Another payment of 30% of the new balance comes to the hotel owners in May of 2003. In February of 2004 one more payment, again 30% of the balance, will be passed on to the hoteliers. What`s left will be paid in June of 2004.
Room rates agreed to are the average door price charged during 2001 and 2002 by the hotels in the Athens area. On top of that average, the hoteliers will be able to add inflation increases up to 2004 (as per official government figures) minus 13%.
Hotel owners also agreed to make every effort to quickly adapt the international star system that denotes hotel quality. Minister Venizelos said the country`s tourism organization will have all the stipulations and quality regulations for each star category ready sometime in September.
Along with the hotel star system requirements, the organization will announce the prerequisites that must be adhered to by rented rooms and apartments in order to achieve a key quality category.
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