“Stop” to 15 Hotel Investments – Where and Why Projects Are Being Put on Hold

Over the past year, a series of hotel and tourism investments have been confronted with negative opinions or requests for substantial modifications within the framework of the prescribed licensing procedures.

The relevant decisions come from archaeological services, environmental authorities, and local government bodies and concern different stages of administrative review, which in some cases allow for further examination or resubmission. In an environment of heightened investment interest in Greek tourism, the competent authorities are called upon to weigh factors related to landscape, infrastructure, and the institutional framework of each area.

The decisions that follow reflect the current evaluation framework, as it is applied today in individual destinations across the country.

Cyclades

Mykonos, Ano Mera

The Ephorate of Antiquities of the Cyclades decided not to approve a study for the construction of a new four-star hotel, with basement and swimming pool, on a property owned by Dream Places Single-Member P.C., with an area of 899.36 sq.m., at the location Palaiochastro, within the boundaries of the settlement of Ano Mera in Mykonos. According to the decision, the study includes extensive excavations across the entire property, without sufficient adaptation to the intense natural relief, and presents incompatibilities with the island’s architectural standards. In addition, it was judged that the implementation of the project would cause damage to the immediate environment of the Palaiochastro archaeological site.

The Ephorate recommended the submission of a revised study, proposing, among other things, the removal of the 40.5-meter-long swimming pool, as well as the revision of the morphological elements of the facades.

Paros, Marpissa

Furthermore, the Ephorate of Antiquities of the Cyclades issued a negative opinion on the study for the construction of a five-star hotel complex consisting of independent tourist villas with pools, on a property owned by Megaron Properties P.C., at the location Kastra, Marpissa, Paros. The submission of a new revised study was requested, without underground constructions, with a reduction of the total volume, paved surfaces, and swimming pools, as well as changes to the layout of parking areas and internal circulation.

Paros, Kolymbithres

At the same time, the Municipality of Paros proceeded with the assignment of a specialized memorandum against the Special Urban Planning Plan for the Kolymbithres area, which concerns an investment plan by EKTER S.A. for the creation of a five-star hotel, following a relevant decision by the Council of State, which had deemed a previous approval insufficiently substantiated.

Serifos, Kalo Ambeli

In Serifos, the Board of Directors of the Protected Areas Management Body issued a negative opinion on the development of a five-star hotel with a capacity of 50 beds at the location Kalo Ambeli, due to gaps in the institutional framework for construction in protected areas and environmental parameters related to the protection of endemic species.

Serifos, Ganema

In addition, the Decentralized Administration of the Aegean rejected the environmental study for an underground hotel of 93 beds at the location Ganema, submitted by the company SERIFOS VILLAGE P.C. The decision was based on the unanimous negative opinion of PESPA, remarks regarding potential fragmentation of a protected habitat, insufficient documentation of water supply adequacy, as well as the applicable Presidential Decree and the status of the area as a “Landscape of Outstanding Natural Beauty.”

Santorini, Vlychada

In Santorini, the consultation on the Strategic Environmental Impact Assessment of the ESHASE Santorini Valvis Volcanic Spa project in Vlychada was suspended. The Municipality of Thira has stated that it does not accept the promotion of strategic investments prior to the completion of the Special Urban Planning Plan, emphasizing that the island has exceeded its carrying capacity.

Ios, Kea and Milos

In Ios, an ESHASE for the Calilo Loemo project was rejected until the completion of the Local Urban Planning Plans of the island. Also, in Kea, a negative opinion was issued for the HILLS & SEA KEA project, with key issues being the over-extraction of the aquifer and the lack of provision for housing and servicing staff.

At the same time, in Milos, the Municipality unanimously issued a negative opinion on the development of a hotel complex of 94 beds in the Provatas area, due to the inability to secure new water supply and the need for a special institutional framework for Natura areas. In addition, the Municipality of Milos decided to file an application for suspension and interim injunction against the building permit and environmental approval concerning the expansion of the White Coast hotel complex at the location Mytakas.

Crete

Rethymno, Risvan Metochi

The Ephorate of Antiquities of Rethymno rejected a study for a new two-story duplex residence with swimming pools, owned by MEGALONNISOS Tourism Enterprises S.A., due to incompatibility with the character of the designated settlement ensemble. It was proposed that a new study be submitted, taking into account the particular characteristics of the protected designated ensemble of Risvan Metochi and aligning with its architectural identity and historical value.

Rethymno, Latzima Quarry Area

At the same time, the Ministry of Environment and Energy rejected a request by Konstantinos Troulis to reduce the minimum distance of 1,000 meters from the boundaries of the quarry area “Latzima 1” for the installation of a hotel unit at the location “Xyloforos.”

Chania, Falassarna

In addition, the Ephorate of Antiquities of Chania rejected a request for the construction of two two-story buildings comprising four tourist residences at the location “Koutri,” owned by Emmanouil and Theodoros Ligopsychakis, due to the lack of frontage on a recognized public road.

Heraklion, Ano Archanes

Meanwhile, the Ephorate of Antiquities of Heraklion, although it approved a request by Ms. Ioanna–Efrosyni Mylogianni for the construction of three new single-story residences with storage spaces on her property, on Kontocha Street, at the location “Sohora” or “Chasa,” within the boundaries of the settlement of Ano Archanes, rejected the request for the construction of three swimming pools. The Ephorate rejected the pools taking into account the property’s location within the settlement of Ano Archanes, namely in proximity and mutual visual contact with the part designated as an archaeological site and traditional settlement, in proximity and direct visual contact with Mount Giouchtas, as well as in an area additionally protected as a site of outstanding natural beauty. In such an area, the construction of swimming pools is not deemed appropriate, as it would introduce into the environment of the designated archaeological sites an element “foreign” to them and a use that does not harmonize with the character of both the settlement and the wider area, which to this day retains its agricultural character.

Dodecanese

Rhodes, Koskinou

In Rhodes, the Municipal Community of Koskinou issued a negative opinion on an investment by INTERPLAZA S.A., with a budget of 148 million euros, which provided for a five-star complex and tourist residences with 632 beds, due to water supply issues.

Rhodes, Lardos

A negative opinion was also issued for the expansion of a hotel complex in Lardos, pending the legalization of existing irregularities and the securing of adequate water supply.

Kos

The Municipal Committee of Kos issued a negative opinion on the Casa Coa investment, amounting to 22 million euros, which concerns the development of a five-star hotel with 1,200 beds at the location Limnara.

At the same time, the Municipal Community of Asfendiou issued a negative opinion on the increase in capacity of the Utopia Blu 5 hotel, owned by BLUE OCEANIC HOTEL A.X.T.E., from 50 to 136 beds, as the property is located within a Natura 2000 area and issues of infrastructure adequacy were raised.

Peloponnese

Eastern Mani

The General Directorate of Restoration, Museums and Technical Works of the Ministry of Culture rejected a study for the construction of two five-star hotels in the Agriada area, due to building density and the inability to integrate the projects into the protected historical landscape.

Overall, the above cases outline the framework within which the licensing of tourism projects is currently evolving, with the competent authorities examining each investment proposal based on the specific characteristics and resilience of each area. These procedures, as emerges from the decisions, are gradually shaping the conditions under which new tourism investments in the country proceed—or are redesigned.

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