Greece’s Public Real Estate Company (ETAD) is setting its sights on a new era of tourism development, with a strategic focus on modernizing Greece’s historic Xenia hotels, thermal springs, and seaside properties.
At a presentation during the 89th Thessaloniki International Fair (TIF), ETAD CEO Iro Hadjigeorgiou highlighted a dual mission: to attract crucial investment and build new destinations that benefit local communities.
This strategy taps into a broader trend, as noted by IOBE General Director Nikos Vettas. With an aging Europe driving increased demand for health and wellness services, Greece has a unique opportunity to capitalize on assets like its thermal springs.
“If Greece does not utilize its assets in a timely manner, competitors from the European south will,” Vettas warned.
Xenia and thermal spring projects set to reshape local economies
The plan moves beyond simple property management to create sustainable, long-term value. Tenders for the historic Xenia hotels in Drama and Kozani are nearing a final stage, and competition for the Xenia Ouranoupoli has concluded, while a major property in Chania is in the planning phase.
In Athens, a high-stakes competition for the Vouliagmeni Coast has attracted six prominent investment schemes, with financial offers expected by the end of September. Another tender for Kalamitsa Beach in Kavala is also in the works.
Meanwhile, ETAD is looking to leverage its portfolio of thermal springs, a natural fit for the burgeoning “wellness tourism” market. This includes the Kaiafas Thermal Spring and the springs at Methana, which have significant potential for integrated hotel and wellness investments. The ongoing €50 million ($58.5 million) development by the Mitsis Group in Kammeni Vourla is a prime example of this model.
The strategy also includes the former Government House in Thessaloniki, “Palataki,” which is being prepared for a new life as a cultural and tourism destination with a focus on sustainable public-private partnerships.
By taking a selective, step-by-step approach to its most promising projects, ETAD aims to reposition itself as a key driver of economic growth and social value.
Xenia hotels at the helm of Greece’s post-war tourism strategy
The “Xenia” hotels, initiated as part of Greece’s post-war tourism strategy, aimed to showcase the country’s natural beauty and attract international visitors. Today, they stand in many areas of the country like ghosts of a past that began with the ambitious intention to create a domestic tourism industry.
Implemented from 1953 to 1967 under the Greek National Tourism Organization (GNTO), the program included hotels, motels, tourist kiosks, and organized beaches strategically located across Greece. This ambitious project was pivotal in promoting Greece globally, leveraging tourism as a cornerstone of economic recovery following World War II.
Related: The Xenia Hotels and the Birth of Modern Greek Tourism
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