Season 2000
On the decrease, Shorter stay.

Concentration
fleet modernization

Deregulation
Cabotage

About the Market:

Demand for domestic and international ferry transportation is linked to the Greek economy (as well as to the Turkish economy). The Greek economy, with a gross domestic product currently growing at 3.5 - 4.0% per annum, is amongst the fastest growing economies in the European Union. Strong market fundamentals and increasing integration with the EU support the view that this condition will continue for Greece. Beyond the positive impact of the Greek economic growth on demand for ferry transportation, other factors are playing a role:

· The European Union Greece is in the process of transforming from a relatively remote Southern European Market to a modern exporting economy. The erosion of Greek trade tariffs and Greek growing integration with the European Union have accelerated this transformation. The countries in, or bordering to Europe are affected by EU transport policy addressing the need for a modal shift of cargo transportation from road to sea in order to halt road congestion, reduce accident rates and improve the environment.

· Fast ferries The introduction of modern high-speed ferries has vastly increased the travel-time competitiveness of ferry versus overland transport. As an example, by introducing relatively fast ferries on the route Ancona - Patras, the travel time has been reduced by about 35% and has increased the demand.

· Tourism. Changes in European demographics and lifestyle patterns have led to tourism becoming among the fastest growth sector in the European economy. Ferry business is "surfing" on this wave.

Season 2000 will be risky:

The Federation of Greek Tourist Enterprises (SETE) told a press conference on Monday tourism to Greece from abroad this year will
remain at 1999 levels. SETE appears less optimistic than the Institute of Tourist Research and Predictions, which had recently, spoke of an increase of up to seven percent in this year's tourist movement.
SETE further noted the alarming fact that despite the increase in arrivals, overnight stays are decreasing. The average stay of an alien in Greece has currently dropped to 11 days. SETE analyzed its positions on tourist policy and proposed, among others, that efforts should be made to link the 2004 Athens Olympic Games to Greek tourism, particularly at communication level, and that
the government's effort to create new jobs should give priority to tourist investments which create jobs.

Concentration & modernisation

The Greek ferry market which was a couple of years ago describe as a small parcel business has change drastically. Concentration and Fleet modernization program  have change the face of the Greek coastal shipping. Ferries companies are attractive as they hold significant shares of the market, agencies and customer networks and can pursue good relations with suppliers, customers and port authorities, thus generating loyalty within a geographically focused area of operations. In this respect, no more than 5 companies can be considered. Investor any start to worried a bit about the "Stratospheric" gearing of some of them and the value of their shares in the Athens Stock Exchange has been smacked hard in the past recent months. Analyst following Attica or Minoan Group of companies have downgraded prediction in the light of the aggressive increase in debt servicing created by their new building program. (On that respect, Anek is a company with hardly no debt - with the exception of the M.USD 290 loan from Chase and a few millions in working capital - is maybe the only counter example)

Greek Ferry Revolution

Summer is Short - Sommar ar kort

Concentration, Globalisation & Rationnalisation

Greece Remains Greece