One in three big investments are in tourism
Investment interest in Greece’s tourism sector has picked up markedly since the introduction last year of new incentives under a development law, and under European Union-subsidized Third Community Support Framework (CSF) investment programs for the modernization of existing units in the sector. As of the beginning of December last year, out of a total of 385 investment plans submitted under the new law, some 118 concerned tourism. State subsidies are generous and meet the bulk of the cost of the investment. The budgets of the 118 schemes submitted total 225.5 million euros, while the subsidies amount to 130.7 million. Most schemes approved under the new law concern modernization of existing hotels, and the rest are divided between conversions of traditional buildings and the building of supplementary installations or new complexes. The largest schemes approved are an 11-million-euro modernization scheme by K. Mitsis in the Dodecanese, a 9.2-million-euro new five-star hotel in Argolis by K. Markou, a 6.5-million modernization plan by Tsaousoglou in Corfu, and a 6.3-million modernization plan for the Atrium Palace in the Dodecanese. There are 17 other approved schemes with budgets of at least 2 million euros. A ministerial decision at the end of last month determining the areas of the country where the incentives of the development law do not apply for the setting up of new or the extension of existing hotels has made the investment landscape clearer for 2006. At the same time, officials report progress in approvals of subsidies under CSF for such hotels, as well as camping sites and other types of accommodation. From a total of 223 schemes approved under Measure 2.2.3 of CSF subsidies for tourism, 103 concern hotels, camping sites, traditional hostels and rented rooms. Most of the rest concern travel agencies, car rentals and others. Under Measure 2.2.2, a total of 3,671 schemes have been approved for units totaling 80,367 beds in hotels, rented rooms and furnished apartments. Their combined budget was 155.4 million euros and the subsidies will amount to 60 million. The International Herald Tribune and The New York Times will continue hosting presentations of opportunities for tourism investment in Greece at various events this year around the world. The scheduled events are in New York on February 25, Berlin on March 9, Paris on March 16, Moscow on March 24, Beijing on April 21 and Cairo on September 5.
