Enterprise Greece Sees High Investment Interest in Greek Tourism Sector

Enterprise Greece CEO Marinos Giannopoulos. Photo source: Prodexpo

The “renaissance” in Greece’s tourism real estate market was a key topic at the recent 25th Prodexpo real estate conference held in Athens.

During the event, Enterprise Greece CEO Marinos Giannopoulos stated that Greece has regained a top position among investor preferences. According to the latest Ernst & Young (EY) Attractiveness Survey, more than half of hospitality companies — 51 percent — indicated “they would invest in Greece again”. Additionally, according to Giannopoulos, tourism is projected to contribute 2.9 percent to the GDP in 2024.

Enterprise Greece’s CEO then highlighted that this “revival” in the Greek tourism real estate market results from systematic efforts over the past few years. “It is essential to have a quality product, as this serves as the incentive for investors to come to the country,” he explained.

He also highlighted the importance of fast-track processes for large investors and the need for support to make investments more appealing. “We are focused on creating a sustainable and environmentally friendly product, aiming to attract visitors year-round. This, along with a qualitative investment product and trustworthy partnerships, forms the complete package for attracting investors to Greece,” said Giannopoulos.

Enterprise Greece is the official investment and trade promotion agency of the Greek State, operating under the auspices of the Ministry of Foreign Affairs.

What investors in tourism look for

During the discussion, Ioannis Orfanos, Partner and Head of Capital Markets at Colliers Greece, noted that Greece has emerged as a resort destination in recent years, with significant investment flowing into the Greek islands. He pointed out that other regions, such as Athens — particularly the Athenian Riviera — Thessaloniki, the Peloponnese , and the northern Cyclades islands, are also worthy of focus.

Orfanos described three major categories of investors entering the Greek market: those interested in large hotels in destinations like Crete and Rhodes; those seeking to rebrand old hotels; and those looking to develop new destinations.

Hospitality: An ‘amazing’ but challenging market

Luis Picas Asmarats, Senior Director of Investments at Hotel Investment Partners, reiterated that Athens has transformed into a vital destination over the last five years, thanks to projects like The Ellinikon on the Athenian Riviera, as well as its role as a city of entertainment. However, he cautioned that while hospitality presents exciting opportunities, it also comes with challenges.

“We must always plan long-term, continuously innovate with new products, and cultivate strong local partnerships with managers who can also effectively collaborate with foreign counterparts,” he stated.

Greece: A brand name

Roger A. Allen, Group CEO of RLA Global, noted that the brand “Greece” is attracting larger markets than ever before. “It is an established destination, ranking third in investment within the European Union,” he remarked.

Allen also pointed out that foreign private citizens are increasingly interested in purchasing holiday homes in Greece. He attributed the improvement of the Greek tourism product in recent years to the development of alternative destinations across the country, including Athens. “Good access to a destination is crucial for attracting visitors,” he added.

Melia Hotels has plans for future investment in Greece

Participating in the same panel discussion, Nikolas Kafetzidakis, Head of Development for Greece and Cyprus at Melia Hotels International, announced that the international Melia brand is planning to expand in Greece in the near future.

He mentioned that suitable destinations are currently being evaluated and that the company is searching for partners to adapt Melia’s entertainment and recreation offerings.

“Melia operates 19 different brands, all of which can be integrated harmoniously into the Greek market. We typically enter existing investments and proceed with agreements,” he explained. “We seek global partners to ensure better financial performance for everyone involved, while also exploring new areas for investment and working to extend the tourism season in our target destinations.”

The Prodexpo event, held from October 21-22 at the Athens Concert Hall, is Greece’s longest-running conference dedicated to the real estate sector.