What's Up with the Drachma? ~ Tour Operator Sparks Drachma Row

November 7, 2011

Tour Operator Sparks Drachma Row

While the world speculates on whether Greece will ultimately leave the euro, Europe's biggest tour operator is already anticipating it.

Travel giant TUI has sent notices to Greek hotels in recent weeks, asking them to accept payments in drachma should an exit from the single currency happen.

The letters, issued by the Nordic tour operating unit of Germany-based TUI, added yet another jolt to Greek nerves—and pride—in recent days as the debt-ridden country has struggled to emerge from political chaos.

In them, the European tour operator asked Greek hoteliers to sign a contract amendment moving to protect TUI were Greece to quit the euro and switch to a new and significantly devalued currency.

The move, which was disclosed at the weekend in the German tabloid Bild-Zeitung, has quickly sparked outrage across Greece's tourism industry, which accounts for nearly one-fifth of the country's economy.

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