Tourism is the only magnet for investment

Investments in Greece continue to lag, with the exception of those aimed at tourism, which continues to flourish in the crisis-hit country, helping – along with an increase in product stock – the economy grow this year, according to an Alpha Bank report.

Alpha’s weekly financial bulletin argued last week that the 1.1 percent annual growth recorded in the third quarter of the year was mainly thanks to an increase in tourism revenues and in product stockpiling. It noted that despite the significant improvement in the business climate, the contribution of investment expenditure in gross domestic product amounted to just 0.3 percentage points.

In the tourism and hotel sector, however, investment plans for the next few years are estimated to reach or exceed 8 billion euros. In 2016 alone, funds of 3.2 billion were injected into the sector, while another 4 billion euros’ worth of projects were submitted for approval to the competent authorities. These projects range from the upgrading and construction of new hotel units to the development of tourism complexes that combine hotels, marinas, golf courses, etc.

The steady growth of tourism in recent years and the increase of arrivals to historic highs, combined with the restoration of financial stability, have led to the restarting of tourism projects that date from the previous decade, while new investors are also being attracted.