Greek Tourism Spatial Plan Update Coming by End of June, Hatzidakis Confirms
Source: GTP Headlines
Vice President of the Greek Government Kostis Hatzidakis during an on-stage discussion with SETE President Yiannis Paraschis. Photo © Greek Travel Pages (GTP)
Greece is expected to announce long-awaited updates to its Special Spatial Framework for Tourism by the end of June, according to Vice President of the Greek Government Kostis Hatzidakis.
Speaking at the 33rd General Assembly of the Greek Tourism Confederation (SETE) in Athens, Hatzidakis described spatial planning as the government’s most important ongoing reform for the tourism sector. The framework aims to provide a clear roadmap for sustainable tourism development, addressing years of irregularities and gaps in planning that have contributed to investment uncertainty.
“There is a delay – we must tell the truth,” Hatzidakis said during an on-stage discussion with SETE President Yiannis Paraschis. “We must move forward with the special spatial plan for tourism as quickly as possible. It is high on the Prime Minister’s agenda and a priority for the ministries of Environment and Development.”
The Vice President highlighted that while the process has been slow, developments are imminent. “Even a spatial plan that doesn’t fully meet your expectations is better than having no framework at all,” he noted. The update is expected before the end of June.
A path to investment clarity
The absence of a national spatial plan for tourism has long created grey areas around zoning, land use, and development criteria – deterring potential investors. The new framework is expected to define clear parameters for tourism-related infrastructure and guide regional planning in line with sustainability goals.
SETE has repeatedly called for progress on the plan, arguing that regulatory clarity is critical for maintaining Greece’s competitiveness in a rapidly evolving Mediterranean tourism landscape.
Tackling infrastructure challenges
Beyond spatial planning, Hatzidakis acknowledged challenges in key infrastructure projects such as the new airport in Kastelli, Crete.
“We are facing some issues at Kastelli. It’s no secret,” he said. “Under the Prime Minister’s direction, we’re working to resolve them through coordination between the relevant ministries and the concessionaire.”
Infrastructure gaps, he noted, continue to slow down the country’s capacity to meet rising tourism demand.
Taxation and investment support
Photo source: SETE
The Vice President also addressed ongoing concerns raised by SETE regarding taxation and investment support. Responding to criticism that the new Development Law lacks specific provisions for Greek tourism, Hatzidakis said tourism remains a central focus.
“There are two actions in the Development Law that allow for new tourism projects,” he said. “So far, major tourism investments totaling 1 billion euros have been approved as strategic investments. In total, 80 percent of funding under the law has gone to tourism.”
In addition, Hatzidakis noted that over 2,000 new small and medium-sized tourism projects were recently approved with state funding from the EU-backed NSRF program, representing 379 million euros in public support.
On the issue of tourism-related fees, he defended the government’s approach to redistribution. “There is a special code in the state budget for these funds. Yes, they are intended to support infrastructure – but we must also be flexible in responding to national emergencies, like natural disasters,” he said, adding that reciprocity remains a guiding principle.
Competitiveness and the European context
Earlier, during SETE’s general assembly, Paraschis, in his keynote speech, called for a rationalization of taxation and climate-related charges on the tourism sector. SETE is preparing a joint study with INSETE and PwC to document how Greece’s tourism tax burden compares to that of other Mediterranean destinations.
“The continued increases in climate resilience fees and municipal duties without meaningful consultation or clear reciprocity highlight the need for a more predictable and fair tax framework,” Paraschis said.
Vice President of the Greek Government Kostis Hatzidakis. Photo © Greek Travel Pages (GTP)
Moreover, during his on-stage discussion with Paraschis, Hatzidakis also touched on labor shortages and workforce sourcing, urging the sector to take a more proactive role. Drawing comparisons to the shipping industry, he encouraged businesses to help identify and attract talent from abroad – especially now that Greece is expanding its framework for non-state universities.
Reflecting on tourism’s place within broader European economic challenges, Hatzidakis suggested the Greek tourism sector may continue to thrive even as others struggle.
“Europe risks becoming the hotel of the planet,” he said. “If we don’t take swift action on competitiveness, energy networks, and market cohesion, tourism may be the only sector left standing. That’s good for you – but the rest of us must act.”
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