LUXURY TRAVEL IN CRETE
The market of luxury tourism in Crete is still under development. However, huge investments by global companies, such as Hilton and Marriott, have already been made.
Crete’s extraordinary and diverse beauty has been attracting over the years the interest of millions of travellers from around the world.
According to TUI, the largest tour operator in the world, Crete was the most popular Summer 2021 holiday destination for Europeans.
Crete accounts for 20% of the national tourism revenue.
The leading island of Greek tourism, whose tourism revenues in 2020 accounted for 20% of the country’s tourism revenues. More than 30% of 5* hotel in Greece are located in Crete. From 5 M visitors will be 18 M on 2025
● 5 million visitors today
● 18 million visitors on 2025
Development Law & EU Funding
Up to 75% return on investment in cash or tax benefits
Innovative project plans will be able to utilize a wide range of financial support tools according to the new development law which was recently passed in parliament. The “Development Law: Greece – Powerful Growth” foresees aid in the form of tax breaks, subsidies, leasing subsidies, job creation subsidies, and business risk financing for startups.
The European Commission approved the Partnership Agreement for the 2021-2027 programming period for Greece, which will allocate more than 21 billion euros for investments and social programs in the country.
The Commission stated Greece is the first EU country to reach a Partnership Agreement for funding within the Development Framework for 2021-2027.
Fast Track Law
An investor’s aid Fast lane for permissions / improved terms
With the Fast Track Law (3894/2010), the Greek Government provides - international and Greek - investors with a supportive and transparent set of investment policies, procedures and administrative tools for the rapid implementation of big scale public and private projects.
The Acceleration and Transparency of Implementation of the Strategic Investments Law allows businesses to proceed without the complexity of heavy bureaucracy and an inflexible legal framework; which two factors have to date discouraged investors and significantly delayed the implementation of major projects.
EU Visa
Attracts foreign business
Non EU citizens owning or purchasing property of a value exceeding 250.000 euros can acquire a valid residence permit in Greece; thus gaining access to the European markets and the Schengen Area.
Residence permit granted for 5 years.
Lease for at least 10 years or invest in a timeshare for hotel accommodation or furnished tourist residencies in a combined tourist facility, as the above facility must be registered with Greek National Tourism Organization (GNTO)
Estimated Economic Development in Greece
After a decade of economic crisis & two years of the pandemic, the Greek economy has rebounded and begun developing dynamically.
Banks have now completed the consolidation of non-performing loans and have started actively financing the economy.
Reduction in the development of the hellenic 10-year bonds by 1% in turn has created stable financial conditions providing security, stability and confidence in the Hellenic economy while restoring the competitive levels of standard interest rates in the European Market.
Over the next 5 years increasing amounts of investment funds are expected to flow into the Greek economy. A total sum of 100 billion euros will cumulatively be provided from the NSRF, Development Fund and CAP, low-interest business loans and the inflow of private capital.
Market projection for prospects in Greece
According to the existing data, it is estimated that in the next 5 years there will be a cumulative:
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significant growth of GDP by at least 20%
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reduction of unemployment by at least 8%
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significant increase in private and public investments
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privatization will be further accelerated.
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total investments from public and private sector are constantly increasing.
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the positive performance of the Athens Stock Exchange during the last few years, in combination
with the significant growth of corporate bonds issued, will strengthen the financial market.
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new processes in economic policy with heavy tax reduction and business orientation, as well as a
positive shift in private market psychology, will strengthen private investments.
Conclusion
The development of a project in Crete targeting the Luxury Tourism industry is an opportunity allowing to not only benefit financially, but also become part of the positive impact on the general economic development of the island as a whole; thus be part of a future legacy.
Over the next years, Crete aspires to define itself as the centre of discussion for the luxury tourism at an international level.