Thursday, June 12, 2025
Greece is set to reveal a crucial update to its Special Spatial Framework for Tourism by the end of June. Kostis Hatzidakis, Vice President of the Greek Government, confirmed the long-awaited changes during his speech at the 33rd General Assembly of the Greek Tourism Confederation (SETE) held in Athens. This move is expected to provide the tourism sector with much-needed clarity on zoning, land use, and development, which have been major obstacles for investors in the past.
A Game-Changer for Sustainable Tourism Development
Hatzidakis emphasized that the updated spatial framework for tourism is one of the government’s top priorities. The main goal of the plan is to lay out a clear, sustainable path for tourism development that addresses long-standing planning challenges. Over the years, the absence of a comprehensive spatial framework has created confusion and uncertainty in the sector, hindering potential investment.
While acknowledging the delay in the process, Hatzidakis assured that the updated framework would soon be finalized. He pointed out that even a plan that does not fully meet all expectations would still be better than having no plan at all. The government aims to ensure that the updated spatial framework will provide a clearer roadmap for the development of tourism-related infrastructure, fostering growth while aligning with sustainability objectives.
The Road to Investment Clarity
For years, the lack of a national spatial plan for tourism has left many grey areas, particularly in zoning, land use, and development criteria. This uncertainty has deterred investment, as potential investors were unsure about where and how to proceed with new tourism projects. The upcoming spatial framework is expected to establish clear rules for tourism development, ensuring that the growth of the sector is managed in a sustainable and organized manner.
The Greek Tourism Confederation (SETE) has been calling for the completion of the framework, stressing that the lack of regulatory clarity is putting Greece’s competitiveness at risk. With other Mediterranean destinations enhancing their tourism offerings, Greece needs to address these issues promptly to maintain its attractiveness for investors.
Infrastructure Hurdles on the Horizon
In addition to the updates on spatial planning, Hatzidakis also discussed the ongoing challenges surrounding key infrastructure projects. One such project is the new airport in Kastelli, Crete, which has faced several setbacks. Hatzidakis admitted that there have been difficulties in the development of this critical infrastructure, but assured that the government is working to resolve the issues. The Prime Minister has directed the relevant ministries to work closely with the concessionaire to accelerate the progress of the Kastelli airport project.
Infrastructure gaps remain one of the major bottlenecks in Greece’s tourism sector. The country’s ability to meet the rising demand for tourism services is being hampered by delays in key infrastructure projects, which need to be addressed if Greece is to continue competing effectively in the global tourism market.
Taxation and Investment Support
The Vice President also addressed concerns related to taxation and investment support, especially in relation to the newly implemented Development Law. Hatzidakis acknowledged criticism from SETE, which has pointed out that the Development Law does not provide sufficient provisions for the tourism sector. However, he stressed that tourism is a central focus of the law, with 80% of the funding allocated under the law directed to tourism projects.
Hatzidakis further highlighted that more than 2,000 new small and medium-sized tourism projects have recently been approved with state funding from the EU-backed NSRF program, amounting to 379 million euros in public support. This funding is expected to play a key role in boosting the development of new tourism infrastructure and services across the country.
Concerns Over Tourism-Related Fees
Hatzidakis also addressed the issue of tourism-related fees, defending the government’s approach to redistributing these funds. He explained that there is a dedicated budget code for tourism fees, and although the funds are primarily intended to support infrastructure, there is also flexibility to respond to national emergencies, such as natural disasters.
The Vice President emphasized that the government is committed to ensuring fairness and reciprocity in how these funds are distributed, taking into account the needs of both the tourism sector and the broader national priorities.
Addressing Greece’s Competitiveness in the European Context
During the event, Yiannis Paraschis, President of SETE, also made a strong case for the need to rationalize taxation and climate-related charges on the tourism sector. He pointed out that the increasing burden of climate resilience fees and municipal duties is putting additional pressure on the tourism industry. SETE is preparing a joint study with INSETE and PwC to compare Greece’s tourism tax burden with that of other Mediterranean countries, with the aim of identifying areas for improvement.
Hatzidakis acknowledged these concerns and agreed that Greece must ensure its tourism sector remains competitive. He stressed that the government must act swiftly to improve competitiveness, particularly in light of broader economic challenges in Europe. If these issues are not addressed, he warned that tourism might be the only thriving sector left standing, creating both opportunities and risks for the industry.
Labor Shortages and Workforce Challenges
Another critical issue that Hatzidakis discussed was the ongoing labor shortages in the tourism sector. He urged the industry to take a more proactive approach in sourcing workers, particularly by tapping into talent from abroad. Hatzidakis made comparisons to the shipping industry, where businesses have successfully recruited workers from overseas. Given the expansion of non-state universities in Greece, he encouraged the tourism sector to explore similar strategies to address the workforce gap.
Europe’s Tourism Landscape: Challenges and Opportunities
Reflecting on the broader context of European tourism, Hatzidakis offered an insightful perspective on the challenges facing the sector. He suggested that Europe risks becoming “the hotel of the planet,” with tourism being one of the few sectors likely to thrive amid economic difficulties. However, he emphasized that Europe must act quickly to improve competitiveness, energy networks, and market cohesion to ensure the long-term sustainability of the tourism industry.
In conclusion, Hatzidakis stressed that Greece’s tourism sector remains a vital pillar of the national economy, and the government is committed to ensuring that it continues to grow sustainably. With the upcoming update to the Special Spatial Framework for Tourism, along with ongoing efforts to address infrastructure challenges and investment support, Greece aims to remain at the forefront of Mediterranean tourism.
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