Travel advice: Should travellers to Greece be worried about a Grexit?

If the Foreign Office does issue "do not travel" advice, that effectively means that those of us who do still want to travel can't - because the vast majority of travel insurers will suspend cover as a result.

When you book a package holiday, you are covered via the Civil Aviation Authority's ATOL (Air Travel Organisers' Licensing) scheme that protects you from losing your money or being stranded abroad.

ATOL does not protect you if you book direct with an airline or book just accommodation however. You may still be covered, if your accommodation goes bust for example, in one of the following ways:

Paying by credit or Visa debit card

If you pay for a component by credit card and it costs more than £100 ($A207) you will have some cover, but this will only apply to the service you've lost. Paying by Visa debit card may provide similar cover.

Travel insurance

Taking out travel insurance may give you some protection but check the small print, as many policies do not include cover for insolvency, while those that do will usually cover just the service you've lost, not the other services you have booked separately.

Will I be able to use my credit card?

Cards should still work, but hotels, restaurants and shops may be unwilling to accept card payments and insist on cash. There are some reports from tourists of this already happening at smaller shops.

The Foreign Office advises that, "Visitors to Greece should be aware of the possibility that banking services – including credit card processing and servicing of ATMs – throughout Greece could potentially become limited at short notice."

If Greece leaves the euro (see below), Visa said it will adapt to this - it regularly changes, adds or deletes currencies from its systems and that when a country exits a currency, the system for processing payments is still in place while the new currency is added.

"While there are some issues that are outside of Visa's control, we work with all relevant parties to help ensure a swift transition to a new currency with the minimum possible disruption to consumers and retailers," said a spokesman.

Will I be able to get cash from an ATM?

There are mixed reports on the availability of cash from ATMs, according to Abta.

The Foreign Office said: "The Greek government is limiting withdrawals using cards issued by Greek banks to €60 ($A88) per day. At this time, you can continue to withdraw cash using your card as normal, up to the daily limit imposed by the Greek banking system (usually €600), or the daily limit imposed by your card issuer - whichever is the lower amount, as long as the ATM has been replenished. The system for paying with debit and credit cards for retail transactions continues to function."

The Chancellor, George Osborne, warned that the availability of cash in ATMs is likely to become "increasingly patchy." He recommended that travellers take sufficient euros to cover the duration of their stay, emergencies, unforeseen circumstances and any delays.

Currency controls will limit the amount of Euros you can take in and out of Greece, but in such situations you simply declare how much currency you are bringing into the country so that you can take it out again on departure.

Will I be insured against theft if I carry extra cash?

Abta said: "Holidaymakers should check how much cash their travel insurance policy covers them for and should take appropriate security precautions against theft such as using their hotel safe or splitting cash up between their party."

The price of each policy depends on individual circumstances.

What if there are petrol shortages?

While it is not yet clear whether this will become a problem, there has been some panic buying of fuel. Marc Dubin, a Greek Islands guide writer for Telegraph Travel, witnessed a run on petrol on Tuesday in Kos as well as long queues at ATMs.

"Panic buying of petrol has commenced," he said. "I had to visit five filling stations on Kos before finding one without a queue of 10 cars and with petrol, in order to fill up before returning my hire car."

Holiday Autos, the car hire agent, said that its suppliers have their own fuel reserves on site so if customers are renting a car and are concerned about the fuel situation, they should contact the supplier for advice.

"Customers will find the relevant contact details for their supplier on their booking paperwork," a spokesman said. "There is also the option for customers to purchase a fuel policy which will provide them with a full tank of fuel when they pick up their car on arrival."

Many car hire operators allow customers to select a full tank of petrol when picking up a car.

What if there are food shortages?

While Greece's tourist office has stressed that provisions of food and medical supplies in the country are fine, Constantine Michalos, president of Athens Chamber of Commerce, made headlines by warning that there could soon be "shortages on the shelves" and tourists could be left without "basics".

Elena Kountoura, the deputy minister for tourism, responded to this and said: "In reference to certain media reports, we wish to stress out that food and medicine in Greece is absolutely adequate.

"Via coordinated efforts, we have ensured the uninterrupted flow of funds to overseas suppliers, making sure imports of medical, food and other tourism or tourism-related supplies continue normally. Pharmacies, hospitals, hotels, restaurants and supermarket retailers are adequately stocked.

"Any reports stating the opposite are unfounded, as they are not reflecting the actual situation on the ground".

Abta did not think holidaymakers will be affected. Tour operators say they have representatives on the ground in Greece and are monitoring the situation carefully.

What about disruption to public transport?

Some disruption is possible. For the latest information on travelling around by ferry, contact individual companies, such as Blue Star (telephone 18130 from anywhere within Greece, or book at bluestarferries.gr), which sails from Piraeus almost daily to Mýkonos, Santoríni, Pátmos and Rhodes, less often between Rhodes and the preceding three; also from Rafína – closer to Athens airport – to Mýkonos.

Anek (00 30 210 4197420; anek.gr) sails from Piraeus regularly to Santoríni, Pátmos, Rhodes and Crete (Haniá, Iráklio, Haniá and Sitía), and to the latter two ports from Rhodes as well.

Hellenic Seaways (0030 210 4199000; hellenicseaway.gr) is the sole provider of services from Piraeus to Hýdra (catamarans), and from Vólos or Ágios Konstandínos to Skiáthos (conventional and fast boats). They also call at Mýkonos, Páros, Náxos and Santoríni, linking the latter with Iráklio in season. Dodekanisos Pride and Dodekanisos Express (00 30 22410 70590;12ne.gr) provide efficient if expensive links (via catamaran) between the Dodecanese islands – for example, Kos to Pátmos – from May to October.

Should I book a late deal?

Nervousness about the economic situation does seem to have held back bookings to Greece a little this summer. This means that there are still some late deals available. I would certainly be inclined to book a package with a tour operator rather than travel independently. They have a legal duty of care to make sure you are looked after and that you get home safely and conveniently, if problems do suddenly arise.

Is there a risk of civil unrest?

Athens has already seen demonstrations and it is possible that there may be more as a result of current developments. However, British tourists are unlikely to be targets of resentment, and most holidaymakers go to the islands where the political situation is much more stable, and the local population is acutely aware of their economic dependency on tourism.

For the latest advice from Smartraveller follow this link.

The threat of industrial action could also affect holidaymakers. "There are regular strikes," says the British Foreign Office. "These are sometimes called at short notice and can cause disruption to public transport in and out of Greece (including air travel and ports)."

Will Greece now leave the euro?

The situation is uncertain and it is impossible to be sure what will happen next. But it is looking more likely than ever.

What would happen then?

It would be a time of great turmoil, but the currency switch wouldn't be instant. If the process does begin, Post Office Travel Money estimates that it would take 18 months for the new drachma to be properly established, and during that time, the euro would continue to be used as a parallel currency.

The Telegraph, London