The Daily Telegraph has reported that Greece has offered to cover the costs of tourists who are stranded as a result of industrial action or natural disaster in what is effectively a free “insurance policy”.

The move is designed to repair the damage done to its important tourism industry as a result of industrial action and the ash cloud caused by the Iceland volcano. Athens issued the undertaking as the country faced a wave of protests called by unions against government austerity cuts.

Pavlos Geroulanos, the Culture Minister announced the government would “guarantee” extra room and board payments if return flights are cancelled or postponed. “We are certain that it will be a calm summer and that there will be no major strike disruptions,” an official said. “But just in case something happens, the Greek state is prepared to cover these costs.” He said: “We are guaranteeing to pay any extra room and board any visitor in Greece pays even if stuck here because of a volcano in Iceland.”

Tourism generates almost one-fifth of the Greek gross domestic product but bookings have collapsed 10 per cent since the onset of the financial crisis. Budget cuts have provoked stoppages and strikes among public sector workers.

Public life has been met with continual disruption since the Greek government hit the financial buffers last year. Railway employees this week embarked on a series of two hour stoppages, disrupting mainline trains and service to Athens International airport. A Communist-controlled sailors union is planning to mount a blockade of the main port of Piraeus. But Mr Geroulanos said there were indications that visitor numbers would be better than forecast.

“The numbers are not really as gloomy as they were with the first cancellations,” he said. “Some destinations have suffered greatly due to the crisis, but others are doing better than before.” Greece has moved to ensure that the cost of visiting is reduced. It has suspended landing fees at all regional airports and relaxed visa rules for Russians and Ukrainians.

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