Investment interest in Crete, including large-scale tourist projects, is escalating, as five big infrastructure projects to upgrade the island and its economic prospects get underway. With Crete controlling 20% of travel receipts to Greece from abroad and having a strong local economy, it is not surprising that there is fierce competition between major construction and development groups when bidding for private projects. So what are the five projects?
First, the former American base in Gournes, Heraklion, is ceded by the Hellenic Republic Asset Development Fund (HRADF – ΤΑΙΠΕΔ). The preferred investor with an offer of 40.2 million has emerged from REDS, the subsidiary of the Ellactor group, which plans to develop the 350-acre site into a large integrated tourist complex with casino.
Second, the majority of the share capital of the Port of Heraklion Organization has been sold by the HRADF. The control of the port is now claimed by eight investment schemes that have passed to the current final phase of the tender. These are the joint ventures of Grimaldi Euromed with Minoan Lines, Portek International with GPH Cruise Port, GEK TERNA with Aviareps, SEKAVIN with Golden Step Shipping, TEKAL with JCC, and Olete Limited and OLTH.
Thirdly, works are underway for the construction of a new airport in Kastelli, Heraklion, a 500 million-euro project that is expected to be delivered in the period 2025-2026, the construction and operation of which has been undertaken by GEK TERNA and GMR.
Fourth, the three sub-tender procedures for the northern road axis of Crete, known as VOAK, are also in progress, with a total budget of up to 2 billion euros.
Fifth, maturation procedures have begun for the tender to develop “Nikos Kazantzakis” airport. With the completion in the next years of the new airport in Kastelli, the coastal area of the current airport, located in a privileged area near Heraklion, will enter a concession tender for its development with a specific master plan, or Special Spatial Development Plan. In order not to waste time, as was the case at the site of the former airport in Ellinkio, which remaining unused for 20 years, the Public Real Estate (ESCHADA) will be approved by Presidential Decree. The character of the development at “Nikos Kazantzakis” remains to be clarified following the decisions of the government, consultation with the local community and the suggestions of the HRADF advisors. However, it is widely expected to provide complex uses for tourism and leisure development, in combination with commercial and residential areas as well as extensive public green spaces and activities.
At the same time, hundreds of tourism investments are being implemented in Crete. Among them stands out the budget investment of 125 million for the acquisition of over 200 acres in Kissamos Bay, Chania, and the creation of the first hotel complex under the brand of Ikos Resorts on the island, announced at the end of 2021 by the hotel group Sani / Ikos.
In 2019, the last year of uninterrupted operation of tourism before the pandemic, Crete recorded travel receipts of 3.3 billion euros, second only to those of the South Aegean region, which includes emblematic destinations such as Mykonos and Santorini. Regarding the countries of origin of travelers who choose Crete, Germany comes top, followed by France, Belgium, Switzerland and Italy.
This article was previously published in Greek at moneyreview.gr.
