Tourists shun Greece as tanker drivers vow to continue strike

The truckers – now facing prosecution – rejected a compromise offer by the government to offset the financial impact of ending a closed-shop.

The showdown occurred as inspectors from the International Monetary Fund were in Athens to review the progress of austerity measures promised by the Greek government so it can continue receiving international rescue loans.

"We will press on with our campaign in a forceful way," truckers' union leader Giorgos Tzortzatos said. "We are hard-working people doing whatever we can to protect what we own."

In response, the government said last night it would use military trucks and navy vessels to restore supplies. A spokesman said the emergency plan would take effect "as quickly as possible" to ensure that vital public services were not affected.

Sweeping labour reforms in Greece are expected to upset special interest groups for the rest of the year. This follows months of strikes and protests over other belt-tightening measures including VAT increases, and cuts in pensions and civil service pay in the midst of recession that has seen unemployment soar to around 12 per cent.

On Wednesday the government issued an emergency civil mobilisation order to force the striking truckers back to work.

But delays in distributing the notification papers meant that most petrol stations remained closed, as fuel tankers were lined up in protest outside oil refineries and along roads.

The strike has hurt Greek industry and tourism, with fuel shortages likely to affect travel this weekend.

"This is a catastrophe. The decision was taken on the busiest day of the year, at peak season ... I don't know what's worse, what is actually happening today or the bad publicity this is giving us," said George Telonis, head of the Greek Association of Travel and Tourist Agencies.

He said the fuel strike will hammer last-minute bookings and popular holiday excursions to beaches and ancient sites.

Hoteliers at resorts in northern Greece, which are normally accessed by car, have reported a steep drop in bookings of more than 15 per cent.

George Amvrazis, managing director of the Greek Hotel Federation, said the strikes had tarnished Greece's image."This current protest, together with all the others, has set the Greece brand back for years."