The reasons, the reactions, and the broader implications for strategic investments in Santorini
A significant development has been added to the already dense landscape of tourism investments in Santorini as, according to a report by Santorini Magazine, the Ministry of Environment and Energy (YPEN) has decided to suspend the public consultation process for the Strategic Environmental Impact Assessment (SEIA) of the Strategic Investment Plan “Santorini Valvis Volcanic Spa.” The decision, issued yesterday, follows the finalization of the island’s Special Urban Plan, which is considered unprecedentedly strict by Greek standards.
In the document sent by YPEN’s General Directorate of Environmental Policy to the Ministry of Development and the Regional Council of the South Aegean, it is stated that the suspension is necessary “as a comprehensive evaluation of strategic investments and other tourism infrastructures […] based on the island’s carrying capacity is required.” The wording leaves no room for misinterpretation: YPEN clearly indicates that Santorini needs an overall strategic assessment before any new large-scale projects proceed.
An investment that had already received the green light
The SEIA was published on 28 November 2025, marking the next step for a project designated as a “Strategic Investment” in May 2023 and granted incentive approval shortly thereafter. The project is being developed on the property of the company “Athineon Gi” in the Platinamos area of Vlychada, on a plot exceeding 112 acres, with a planned built area of nearly 16,000 m². The investment amount reaches €67.5 million.
The plan includes a luxury resort with 166 beds, a 2,500 m² spa, cave-style suites, tasting areas, a small unit supporting wine and olive oil activities, and facilities for potential conference operations. Four newly built buildings with a total capacity of 20 beds already exist on the property and are incorporated into the new design.
A key element is the recent official recognition of a Thermal Natural Resource within the site, a decision that strengthened the narrative of investor Ioannis Valvis to create a spa resort with a strong thermal character. Valvis had also held meetings with local authorities, seeking support for the project.
The “red line” of carrying capacity
The suspension is not a typical administrative step, as such processes are rarely interrupted after an SEIA is published. Instead, it signals a broader policy shift for Santorini, where issues of saturation, sustainable spatial planning and environmental pressure have become central to public management.
The reference to a “comprehensive evaluation of all strategic investments” shows that YPEN aims to assess the island holistically: from existing hotel infrastructure to new projects, at a time when Santorini must rebalance its tourism offering with environmental resilience.
The new Special Urban Plan: strict limits on development
At the same time, YPEN has finalized the Special Urban Plan for Santorini, which is considered unprecedentedly strict for Greece. The plan, to be submitted to the Council of State for review, includes:
- Increase of protected zones from 21.8% to 67.3% of the island’s area
- Reduction of tourist development zones from 59.8% to 6.8%
- Reduction of out-of-plan residential zones from 61.1% to 13.6%
- Increase in minimum plot size for tourism facilities from 8–15 acres to 40 acres
- Increase in minimum plot size for housing from 4 acres to 8 acres (with an exception for primary residences)
- Stricter access conditions, allowing construction only on plots facing roads existing before 1977, which make up a small part of today’s road network
Overall, implementation of the plan is expected to make new construction for tourism and residential use nearly impossible, even more restrictive than the already strict framework on Mykonos.
Implications for the investment landscape
The Valvis Volcanic Spa case may become a turning point for how major tourism investments are handled in saturated destinations. The “pause” does not necessarily mean cancellation, but clearly indicates that authorities are assessing carrying capacity, environmental impact and alignment with spatial planning more strictly.
For investors, the message is that project development in Santorini will now require more extensive documentation, consultation and integration of local needs. For local communities, the development is expected to strengthen calls for stricter evaluation of the impacts of new tourism projects.
What is certain is that the case creates a new precedent for strategic investments on the island, and it remains to be seen whether YPEN will proceed with a comprehensive carrying capacity study that could define development conditions in the coming years.
