Greek economy strengthens attracting new investment opportunities
June 28, 2018
Last week heralded a turning point for the Greek economy as creditors agreed to disburse €8.5bn (£7.4bn) of bailout funds with the intention of setting the country on the road to further economic stability. The European Union and International Monetary Fund reached the agreement and the money will be released in July, subject to the European parliament’s approving the proposal.
The future for the Greek economy is looking significantly brighter than it has historically. Specifically, the tourism, energy and logistics sectors – already accounting for investment plans worth €22.4bn – are set to create 605,000 new jobs in Greece over the next decade as reported in GTP. In addition, there is a blossoming technology startup industry forming in Athens, as report in The Guardian, where an entrepreneurial young workforce have recognised that the traditional jobs no longer exist or provide the opportunities they once did, and they are trying a new approach more aligned with their career ambitions.
New tourism developments are being announced realising investor appetite in Greece. This was demonstrated late last year with news that Kerzner International and Dolphin Capital Partners had formed a partnership agreement to develop a One&Only resort on Kéa Island, Greece. Commenting on the announcement, Miltos Kambourides, Founder and Managing Partner, Dolphin Capital Partners said their goal was to create a world class asset, to “elevate further the image of the Greek hospitality market." Kambourides will join a panel discussion during the Mediterranean Resort and Hotel Real Estate Forum (MR&H) with other developers and debate the opportunities and challenges to getting deals done across the Mediterranean.
The reported €1.1bn revenue generated from the extension of a concession at Athens International Airport, expected to complete this year, should further bolster the coffers of the Greek economy.
With further initiatives such as a reduction in the rate of corporate tax and property tax to attract foreign investment, Greece continues to think creatively and positively to the future.
Respected economic commentator, Thanos Papasavvas, Founder and CIO, ABP Invest Ltd said of the Mediterranean economic environment; “what makes this recovery sustainable is that the political environment has stabilised around the continent”. Papasavvas will present during MR&H and provide further insight into the macroeconomic trends impacting the Mediterranean region and future prospects for growth.
All this is buoyed with the recent statistics showing the total number of passengers traveling through Greek airports during the January-April period reached 9,939,154, up by 6.4% year-on-year.
The Mediterranean is a highly attractive proposition for leisure and tourism investors. Yet it is complex with nuances between the individual countries but a collective draw to consumers and investors alike. MR&H brings investors, developers, operators and advisors together to debate, discuss and network in a business environment created to nurture new relationships, partnerships and opportunities.