Problems
and Prospects of Zacharo’s
Business Environment
Elis (Illia), in western Greece, is notably
known for its vast land area that is hugely forested, and mainly occupied
by pine trees towards the south. The forest extends far into Foloi and
the mountain ranges of Eastern Elis. The region comprises of seven (7)
municipalities including the capital, Pyrgos which is the largest and most
populated city in the region.
About 30 km away from Pyrgos, just along
the Ionian Sea, lies a beautiful small town called Zacharo. The town is the capital
of a municipality comprising of eighteen (18) other districts. Though relatively not so rich
in the abundance of ancient remains and history, Zacharo was once the
capital of the historical Arini, and
was established as an organised residential complex after its release in 1821. The
excellent archaeological sites, the Springs of Kaiafas, the beautiful
sandy beach and the ever-growing tourism infrastructure make the city lively
with incredible natural beauty and huge archaeological interest.
Being the commercial and financial centre of the
region, Zacharo serves as a connecting point for
Patras—Pyrgos—Kalamata, thus is easily accessible for visitors coming from
different nearby regions and places. The town possesses a
quite mild climatic condition allowing most residents to engage in agricultural
activities as their key occupation.
The economic strength of the local economy of Zacharo
lies in the agricultural and tourism sectors, with the
agricultural sector making up for tremendous portion of local
residents’ income. Agricultural activities are concentrated mainly in
the cultivation of olive oil, raisins, tomatoes, vegetables, wine (red,
white and rosé) and legumes. Zacharo is rich in different varieties of
olive trees, especially, the Koroneiki, which is one of the most
distinguished not just in Zacharo but in most part of Greece. The
olive oil produced here is of extra-virgin quality and is mostly exported
to foreign markets. Zacharo tomato, on the other hand, is noted for
its sweetness and huge size.
Over the past 10 years, Zacharo’s local economy has
continued to experience slow or no growth as part of the upshots
of the debt crisis of the national economy. The concentration of economic
activities and the high dependence of the local economy on agricultural and
tourism sectors seem to pose a fundamental problem to the local economy since
these activities are highly seasonal. Businesses in Zacharo tend to
realize boom in their sales and revenue usually during festive seasons and
the summer every year—from April to October.
The town, which comprises of a population approximately 9,000
in 2011 as recorded by the Hellenic Statistic Authority, has a relatively
high cost of living when compared to neighbouring towns.
The population seems to be ageing. Although they are literate,
there are still not enough employment opportunities for local residents
especially the young labor force. Businesses in Zacharo include farms,
supermarkets, hotels and small shops, coffee shops, restaurants, clothing
and jewellery shops, bakeries. These are predominately family-owned
small and medium-sized businesses.
The apparent and long-existence high valued added tax,
VAT— approximated to be averaged over 20%, still
remains a serious cost item for businesses in Zacharo. This constitutes a major
problem for all the residents of the coastal town who
have to pay it either directly or indirectly.
The absent of vocational skills development
centre/institute is, with no doubt, one of the main factors for the
massive interest in agricultural activities by local residents of the
town. Skilled professionals in the fields of vocational and other tertiary
training are insufficient to meet the demands.
Another major issue affecting Zacharo is the
concentration of its local economy. Diversifying the local economy
could help boasting economic activities and prosperity for all the residents.
Lastly, the need for local farmers to participate fully in
international markets via the export of key agricultural products is vital
to the success of local businesses and to the local economy at
large.
Coauthored by:
Emmanuel Dweh Togba etogba95@gmail.com
Eleni Gerbura elenigker@gmail.com
Supervisor:
Vaso
Charitopoulou, Founder & general manager of “Dione” local development
centre, Ancient Olympia, Peloponnese
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