Going on a holiday to Greece? Take all your cash, experts say

Tourists travelling to Greece this summer are being advised to take enough cash to last their entire holiday and cover any emergencies amid fears the country is heading towards a financial collapse.

Holidaymakers are warned that cash machines in the country are swiftly being emptied and trying to use debit or credit cards may prove futile as businesses desperately try to get hold of cash.

Greece is dangerously close to having to leave the eurozone after pleas for an extension of bailout plans over a €1.6 billion euro debt repayment to the International Monetary Fund were rejected.

The Greek government has announced that banks will be closed all week, and tourists may not be able to access cash in the country.

No refunds

Pat Dawson of the Irish Travel Agents Association said that while the political situation is volatile, anyone thinking about cancelling their holiday should check their terms and condition first.

"There's no way out of it - there's no refunds or anything like that available to anyone with airlines or anything else," he said. "If you cancel, you will lost your money."

Bob Atkinson, a travel expert at website TravelSupermarket.com, said those travelling this summer should take steps to ensure they are not left stranded without access to money. He also urged tourists to take out insurance that will cover them against travel disruption.

€60 per day limit

Cash withdrawals from ATMs in Greece have been limited to €60 a day, and Mr Atkinson said people have been queuing up to empty machines of whatever they can get, with reports that only 40% of ATMs have any money in them.

Mr Atkinson said the €60 withdrawal limit from cash machines was only intended for accounts linked to Greek banks, and tourists should be able to take out up to their normal daily card limit.

But he warned there were no guarantees that ATMs will have been set correctly to recognise the difference in accounts, and that they may automatically have a €60 limit.

He said: “The likelihood of you finding an ATM now with cash in it every day is slim, so we are now saying you should take enough cash in euro to last for your entire holiday because we don’t know how long it will be before the ATMs are back to working normally.

“Some people might say just pay for everything on card, but the problem with that is that many small retailers, such as restaurants, cafes and bars, are saying they don’t want cards, they want cash.”

Mr Atkinson advised tourists to take all the holiday money they think they will need in cash, and to have cards as a back-up.

He also urged travellers to ensure their travel insurance will cover for travel disruption and delays that could arise from civil action such as strikes, and they should also be aware of the possibility of hotels and businesses going under during the summer.

Those travelling independently by booking their own flights and accommodation should ensure they have a policy with cover for “end suppliers failure”, he added.

“That will cover you if you have booked independent travel arrangements and a hotelier or car rental company or whatever went out of business, you would have some kind of recourse and possibly get your money back.”