The failure of Greece to meet its Euro debt repayment has led to Greek banks being closed with travellers left wondering what this means for their holiday plans and travel money.
Following the failure of Greece to meet its Euro debt repayment Greek banks are closed with restrictions on how much money Greeks can withdraw from banks in place until 7 July. Tourists with credit and bankcards issued overseas can use them at functioning cash machines freely, but this is subject to queues and the amount of cash actually available.
So, if you’re planning on travelling to Greece, what do you need to know?
How much cash should I take?
Tourists are advised to take sufficient cash in Euros to cover all travel costs, as ATMs and credit card processing machines may not be operational. As well as having enough money to cover the duration of your stay, you should also be prepared for emergencies, unexpected delays and unforseen circumstances.
There are currently no restrictions on taking unspent euros out of Greece at the end of your stay.
Of course, having to carry your travel money in cash also means you have to take appropriate precautions against theft. The average holiday expenditure by Australians is $2000, so this means a lot of cash to safely stash! You should consider purchasing a concealed travel wallet or money belt. It is also advisable to make use of safes and deposit boxes to store cash once there and split money between members of your travelling group.
Is cash covered by travel insurance?
You should contact your travel insurer to check the limit on cash it covers and to see if additional cover can be arranged. Some insurers have increased the limit on cash when travelling to Greece, without implementing an additional premium, so it’s worthwhile checking.
Can I use my credit cards in shops and restaurants?
As mentioned previously, this depends on whether or not bank-operated processing machines work. Also, smaller shops and restaurants may be reluctant to process cards as they may not be able to access money deposited in their accounts. You should contact your card issuer to ascertain if customers are experiencing difficulties using their cards in Greece. Many small tavernas still operate on a cash-only basis.
What about my car rental?
Your car rental agreement shouldn’t be affected, but again, operators, especially those locally owned, may ask for cash rather than card. You should check before you go.
I’ve loaded a travel card with Euros, can I use it in Greece?
Currency cards loaded with Euros can be used in ATMs and businesses. Again, this is dependent on money being available and retailers being happy to accept cards. It may be worthwhile accessing the cash before you travel.
If I run out of money, can I access funds through money transfer agencies?
Western Union, which is the world’s largest money transfer company, has been closed for business in Greece this week and there is no certainty as to when it will reopen. This shouldn’t be relied upon as a means of access funds.
Will the currency change overnight?
If Greece is required to leave the Eurozone, it could take over a year for the Greek drachma, the original currency, to be reintroduced, so any travel in the short term should not be affected.
If I cancel, will my insurance company pay out?
The short answer is no, unless the Department of Foreign Affairs and Trade (DFAT) changes its stance and advises against all travel. In this case, travellers are likely to receive a refund from their agent, tour operator or insurance company.
Is it safe to travel to Greece?
It’s worthwhile noting that while DFAT has not issued an upgraded security warning, locals may be feeling less than welcoming to tourists whose only worries are how to pay for drinks and meals. Petty crime, such as bag snatching and pick pocketing may increase, especially as it widely known that travellers are now carrying much more cash than normal. There may also be unscrupulous business owners looking to exploit the limited access to money experienced by travellers.
Protests have also been taking place, although these have not been violent or disruptive, you should avoid places where these are likely to take place
Before travelling to Greece, you should check any travel advice and warnings at Smarttraveller.gov.au. It is also advisable to register your travel details here.
Is there any good reason to travel to Greece?
Greece is a great destination for those looking for a travel bargain. Prices in resort islands, such as Crete, have dropped by 13 per cent over the last year, so your money will go further. If you can work with the possible restraints on accessing your money, you can live like a king without it costing a fortune.
It’s also a destination rich in ancient history, stunning scenery, beautiful beaches and great food, and it offers the chance to experience the Mediterranean way of life.
