-The region prioritises sustainable tourism, real estate investment and resilience
Europe’s largest island region is found in Greece and has been drawing international travellers for more than two millennia. The South Aegean numbers over 669 islands, 50 of which are inhabited. The region is split into two groups, – the Cyclades, totalling 32 islands, and the Dodecanese, numbering 18.
Among the region’s islands is national flagship Santorini, cosmopolitan Mykonos and year-round destination Rhodes. Lesser-known islands such as Karpathos, Folegandros and Kea attract visitors looking to experience a more laidback, traditional side of Greece.
Tourism a key driver of economic growth
Each year, the South Aegean attracts around seven million international visitors, representing about 40 per cent of total arrivals to Greece. They arrive by scheduled and charter flights at five international airports, with more than six million on direct flights. Ferry routes connect the islands via 118 ports. As a result, tourism is the region’s most important economic sector.
More than 25 per cent of Greece’s GDP derives from the South Aegean’s blue economy, namely tourism, coastal shipping and port operations. In regional terms, tourism accounts for 97.1 per cent of GDP.
Complementing tourism is the South Aegean’s primary sector, which entails a robust agricultural industry that produces high-quality local goods, a significant percentage of which is exported. The South Aegean’s farmland and seas also supply the country’s hospitality sector and contribute to domestic needs.
Real estate potential
Rounding out the region’s economic profile is its fast-growing real estate sector. In recent years, long-term institutional investors and private equity groups, including global luxury hospitality groups, have recognized the uniqueness of the South Aegean. Major hotel and residential projects are underway across the region, representing 30 per cent of the country’s investment plans. Companies can access a highly educated, multilingual workforce.
Twenty-five per cent of hotels in the region are four- or five-star, delivering a global standard of excellence in services together with the warmth of traditional Greek hospitality, or philoxenia.
Cruises, too, are big business in the South Aegean. The majority of Greece’s cruise arrivals, or about 44 per cent, visit the region.
At the same time, thousands of retirees from across the world have chosen to purchase a plot of land or home on one of the islands to secure a better quality of life.
Strategically located in the heart of Europe, the South Aegean offers a temperate climate year-round and the ability to easily island-hop.
Sustainability at its core
Conscious of the critical importance of safeguarding the South Aegean’s natural beauty and facing the challenges posed by climate change, regional authorities have incorporated a wide-ranging sustainability development framework. Sustainable development of all islands based on the specific needs and characteristics of each one is considered vital. In Astypalea, Greece’s first “smart island”, initiatives include electric public transport. Tilos has achieved zero-waste through coordinated efforts involving locals. Halki has proven a model of clean energy Europe-wide.
In 2022, with the UN’s 2030 Agenda for Sustainable Development high in mind, the South Aegean signed a strategic cooperation agreement with the TUI Group and the TUI Care Foundation, representing Europe’s biggest tour operator, to create Rhodes Co-Lab. Serving as a think tank bringing together the public and private sectors, this ambitious, multi-pronged initiative aims to create an innovative tourism model through a holistic approach that can be replicated elsewhere. The goal is to promote environmental, social, cultural and economic sustainability. To be implemented over five years, the goal is to prove that travel can be a force for good.
Resilience in the face of crisis
South Aegean Region Governor Giorgos Hatzimarkos says tourism has shown exceptional resilience in times when crises are not the exception but the norm. The region has demonstrated quick reflexes and served as a model of resilience. It has managed to bounce back and emerge even stronger by prioritising high-quality facilities and services, value for money and peace of mind for visitors. Swift implementation of crisis management plans has succeeded in winning the trust of travellers. The South Aegean has proven in practice that it remains a safe and welcoming destination.
“Tourism has always been and will remain the oxygen that feeds our economy. This is the result of hard work on the part of our entire sector, on the part of entrepreneurs and personnel,” says Hatzimarkos.
“We treat our tourism sector with love and devotion, with planning and professionalism. This sector of the economy provides income and jobs and our entire community works passionately to create a better tomorrow.”
