Greece’s Bold Moves to Revamp Urban Planning and Address Tourism Challenges
The Announcement: A New Era for Real Estate
In a significant policy shift, Prime Minister Kyriakos Mitsotakis announced the abolishment of easements that enabled "blind" plots of land to gain road access. This change was made public during the conference titled “Reimagine Tourism in Greece,” hosted by the prominent newspaper Kathimerini. The Prime Minister indicated that this legislative reform aimed at curbing unauthorized construction will be proposed to the Parliament soon.
Until now, easements allowed landowners to establish access to roads via adjacent plots without prior subdivision, a practice permitted for land parcels unaltered since 1985. With this alteration in regulations, Mitsotakis emphasized that the era of easements, as understood in today’s context, would soon be in the past.
The Road to Rationalized Construction
“The Supreme Administrative Court’s ruling will lead us toward a more organized future,” Mitsotakis stated in an interview with Alexis Papachelas, the newspaper’s director. He outlined a framework for rationalizing construction through the development or amendment of local urban planning schemes.
“Local planning will be ready in the next 2-3 years. This will enable us to understand the limits and specific characteristics of each area, guiding where and what can be built,” the Prime Minister elaborated. He noted that until these plans are completed, the government would introduce generalized rules and phased restrictions on unauthorized construction.
Preservation vs. Development: Finding a Balance
Mitsotakis acknowledged the necessity of establishing limits, especially in Greece’s numerous yet untouched islands, pointing out the imperative to protect vulnerable settlements. “While I prefer to promote development in established settlements rather than allowing indiscriminate construction on isolated plots, we must offer alternatives and organized reception areas,” he asserted.
The Prime Minister’s vision includes leveraging urban planning principles to direct housing development more efficiently and sustainably, particularly in the stunning Aegean islands.
A Judicial Review: The New Building Code
During the press conference, Mitsotakis also touched upon the hearings at the Supreme Court that address appeals against incentives of the New Building Regulations (NOK). He pointed out the importance of a comprehensive assessment of the environmental impact associated with constructions, beyond merely their height. “It’s essential to also evaluate the quality of materials and energy efficiency,” he emphasized, showing his commitment to sustainable building practices.
However, issues regarding specific provisions of the NOK, such as underground structures, elicited mixed opinions among stakeholders. Acknowledging these diverging views, Mitsotakis expressed a belief in the positive impact of the regulations, even if he refrained from calling himself an expert.
Water Management and Swimming Pools
Turning to concerns regarding swimming pools in tourist areas, the Prime Minister urged for a fact-based discussion, questioning the degree to which they impact water consumption. “If pools account for 20% of consumption, then perhaps we need a dialogue about restrictions, but if it’s just 1%, then water management should not become a burden,” he argued.
Tourism Development: A Focus on Infrastructure
As the Prime Minister evaluated Greece’s tourism landscape, he aligned himself with industry leaders in asserting that Greece does not face an excessive tourism crisis but rather specific challenges needing resolution. “Greece does not have an issue of over-tourism. The concentration of tourists occurs in a limited number of destinations for only a few months each year,” he noted.
Insights on Iconic Destinations: Mykonos and Santorini
Specifically addressing the popular tourist hotspots of Mykonos and Santorini, Mitsotakis acknowledged his government’s responsibility to intervene and protect these iconic locations. “Yes, we have forbidden new construction permits for hotels on Mykonos and Santorini until we can assess the impact of rapid development,” he confirmed.
He stressed that uncontrolled market forces could damage visitor experiences—citing examples of congested sunset views in Santorini despite high room rates that can exceed €1,000 per night.
Infrastructure Investments: The Key to Success
As for addressing the critical infrastructure needs, the Prime Minister emphasized a unified effort. “We must prioritize efficient infrastructure development to handle peak tourism seasons better,” he remarked, emphasizing a coordinated approach.
Investment in Human Capital and Facilities
During the conference, pivotal industry figures reiterated the essential nature of improving infrastructure, promoting sustainability, and cultivating a well-trained workforce to sustain the growth of Greece’s tourism sector. Dimitris Delevengos described these strategies as imperatives for advancing Greece’s tourist offerings.
Eftychis Vasilakis, President of Aegean Airlines, underscored the importance of continuous performance improvement. He categorized infrastructure into “hard” related to actual constructions and “soft” that encompasses the organization of the public state and areas such as waste management and spatial planning.
The Need for Financial Resources in Tourism
Christos Megalou, CEO of Piraeus Bank, drew attention to Greece’s present state of investments, currently representing just 14% of GDP compared to 22% to 24% within the EU. He emphasized the necessity of investments to address this gap, requiring an estimated €370 billion over the coming years.
Strengthening Key Sectors
He pointed out that sectors such as tourism should be enhanced due to their significant contribution of around 14% to GDP. As of now, 15% of Piraeus Bank’s portfolio consists of tourism-related financing.
Importance of A Strong Maritime Sector
Alexander Tsinel, CEO of Fraport Greece, highlighted the critical need for infrastructure improvements within the nation’s airports, which cater to over 36 million passengers annually across the 14 major regional airports.
The Role of Sustainable Practices
Marios Psaltis, CEO of PwC, reiterated the dual importance of improving infrastructure and training staff as pivotal components for elevating the tourism sector. Currently, over 50 projects are underway, with budget projections exceeding €20 billion, yet experts agree that further initiatives are necessary.
Conclusion: A Path Forward for Greece’s Tourism Sector
As Greece embarks on a transformative journey to reshape its urban landscape and tourism sector, the emphasis on sustainable practices, infrastructural investments, and strategic planning becomes evident. With a keen focus on protecting natural resources while enhancing tourist experiences, the government’s initiatives could signal a bright future for one of the nation’s most crucial economic sectors. By fostering collaboration among government bodies, private enterprises, and local communities, Greece stands poised to navigate the complexities of modern tourism and urban development effectively.
