South Aegan Region (Greece)
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1 South Aegan Region (Greece) South Aegan Region 1. Introduction The South Aegean Region is situated in the south-eastern border of Greece and constitutes at the same time, along with Cyprus, the south-eastern borders of the European Union. It is an island region: it is made up of forty eight inhabited islands of different level of economic development, thirty one uninhabited islands and a number of rocky islets. Turkey is the neighbouring country of the South Aegean Region. Map of the South Aegean Region Map of Turkey
2 2. General characteristics of the region Population and major cities The South Aegean Region is divided in two Prefectures: the Prefecture of Cyclades and the Prefecture of Dodecanese. The total population of the South Aegean Region is up to residents and the total extent is km 2 and represents 4% of the total extent of Greece. The forty eight inhabited islands of the Region are scattered over a great area and at distance from the capital of Greece, Athens, and from the city of Ermoupoli in the island of Syros which is the administrative capital of the South Aegean Region. The major cities are the islands of Syros, Mikonos, Naxos, Santorini, Rhodes and Kos. Specific region features The relief of most of the islands is mountainous and rocky, the mineral resources are poor, apart from some rare exceptions and there is severe scarcity regarding conventional energy resources. On the other hand, the rich natural and cultural resources represent the comparative advantage of this Region. Every island of the South Aegean Region constitutes an economic natural environment and a pole of tourist development. The natural environment is characterised by: A great number and variety of sensitive and with rare value ecosystems and A great stature of sea water We must indicate that thirty places belong to NATURA 2000 and four islands have been declared as landscapes of exceptional natural beauty. As far as the cultivated by men environment, the South Aegean Region is characterised by a large number of traditional settlements and a special insular physiognomy of the traditional public architectonics combined with local elements of urban architectonics. Tourism potential and major tourist attractions, number of domestic and foreign visitors Tourist attraction is the important international pole of the Region. The environment of the Region combined with the beneficial climate is creating the basic condition for the development of tourism. The visitors from abroad consider as attractive: The landscapes The culture, history and customs (monument of Ship Elli in the island of Tinos) Traditional settlements (island of Ios) Nature without the human interference (island of Anafi) Greek taverns and Greek hospitality The cultural heritage of the South Aegean Region is consisted by: Archaeological sights and monuments (island of Rhodes) Religious memorials (Church of Virgin Mary in the island of Tinos) Exceptional traditional settlements Historical places (Town Hall in the island of Syros) Museums (Museum of Artists in the island of Tinos)
3 Local exhibitions and festivals (Festival of Vikelia in the island of Syros) Nowadays, general direction of the South Aegean Region has become the reinforcement of new and alternative types of tourism such as marine, cultural and conferential tourism. The main target is the lengthening of the tourist period and expansion of the tourist activity in the whole insular area. Number of domestic and foreign visitors Arrivals and Overnight stays of Tourists Arrivals Overnight stays 2005 Domestic Foreign Sum Domestic Foreign Sum January February March April May June July August September (data 2004) October November December (data 2004) SUM Regional economy The South Aegean Region enlists as one of the less problematic areas of the country. Although the population is increasing, unemployment is decreasing. The urban population arises to 35%, the rural population to 40% and the rurban population to 35% of the totality. As far as the Gross Domestic Regional Product, the image of the South Aegean Region is improved as it is tripled the last twenty-five (25) years. This has also upgraded the participation of the Region in the totality of the country. The Gross Domestic Regional Product per capital is in high position from the respective of the country. It arises to 122% of the medium Gross Domestic Regional Product per capital of the country and corresponds the 74% of the mid Gross Domestic Regional Product per capital of the European Union.
4 The South Aegean Region produces 2,8% of the total Gross Domestic Product of the country. Concerning the productivity, the Region stands in a high level. In 1996 the productivity of the Region came to 81% of the European Union s productivity, improving by a lot her image. The local economy is directed to the tertiary sector and particularly to tourist services. The contribution of this sector to the Gross Domestic Regional Product is constantly increasing, while at the same time the contribution of the primary and secondary sector is decreasing. Despite the improved image of the Region, based on the criterion of the amount of the Gross Domestic Regional Product, different levels of growth and serious intra-regional inequalities are created. As a result, we have four groups of islands: In the first group we classify five (5) islands (Rhodes, Kos, Santorini, Mykonos and Syros) where more than 60% of the Region s total population is concentrated. These islands are characterised by strong tourist activity, by increasing environmental pressures and a high demographic growth and concentration. In the second group we classify sixteen (16) islands which approximately account for 35% of the region s population and which maintain a level of economic development below country s average. In the third group, there are twenty-two (22) islands, where only 3% of the Region s population is concentrated. They are characterised by continuous reduction of their population and lack of infrastructure and resources. A fourth group comprises of small and big islands of relatively limited area. They have almost no residents and complete lack of infrastructure. The workforce of the South Aegean Region arises to people and the engagers to people. The diachronic evolution of the active population and productivity is reported as decreased the last few years in contrast with the increased population of the Region. The shrinkage of the employment in the primary sector (from 21% in 1981 to 10,3% in 1996) is an important indicator of congruity however is creating serious problems in the social and economical sector and the local development. On the contrary, the increase of employment in the tertiary sector (from 50% in 1981 to 62,38% in 1996) ranges the Region in the tertiary and especially tourism-oriented areas of the country. Unemployment rate and number of the unemployed As far as the official unemployed population, the image of the South Aegean Region is improved and is classified in the second position after the Region of Crete in the totality of the country. The condition of the unemployment of the young people, the women and the age-long unemployed is better in contrast with the entire country. The percentage of unemployment in young people and women is 8,2% and 16,6% respectively in the Region and the percentage of the age-long unemployed in the South Aegean comes to 42,3%.
5 Share of agriculture, industry and services in GDP. GDP and GDP per capita. Other basic indicators for the region. Basic indicators of South Aegean Region South Aegean region is classified 2 nd among Greek regions based on the criterion of per capita product with Euros in 2002, behind the region of Sterea Ellada, which is 1 st, with 112% of the average. The per capita product of Greece corresponds to 73,7% of the average of European Union of 25 countries in 2001 according to EUROSTAT and the per capita GNP of South Aegean region corresponds to 84% of the average of European Union. With declared per capita income Euros in 2003 (5% up, 92% of Greece average), the residents paid in 2003 tax of income an average of 857 Euros, while the average of country is Euros. In South Aegean region region corresponds 2,7% of taxed residents (+ 5% in 2003), 2,5% of declared income of country (+ 10%) and 2,1% tax of individual income (+ 11%). Basic indicators of South Aegean Region Year Μέγεθος Greece Average Classification among 13 greek regions Per capita GNP euros 12,8 2 Saving deposits per capita euros 1,8 3 Declared income per capita euros 12,5 2 Tax of individual income per capita euros 1,1 3 Percentages of Greece indicators GNP ,0 % 9 Taxed residents ,7 % 10 Declared income ,5 % 9 Tax of individual income ,1 % 9 Saving deposits ,9 % 9 Source: Epiloges, Greece Prefectures
6 South Aegean GDP and sectors Description Years GDP (millions euros) Primary sector (% GDP) 7,2 7,6 7,4 7,6 7,9 7,7 Secondary sector (%GDP) 7,9 7,6 7,6 7,5 7,5 7,4 Tertiary sector (%GDP) 84,8 84,8 85,1 84,9 84,6 84,9 GDP Per capita (% Greece average) 116,0 119,0 118,0 117,8 117,3 116,4 GDP Per capita ( ) Source: GENERAL SECRETARIAT OF NATIONAL STATISTICAL SERVICE OF GREECE, Regional Indicators Source: AllMedia (2005) «The Prefectures». Share of Primary, Secondary and Tertiary sector in GDP ,8 84,8 85,1 84,9 84,6 84,9 7,9 7,6 7,6 7,5 7,5 7,4 7,2 7,6 7,4 7,6 7,9 7, Primary Sector Secondary Sector Tertiary Sector The per capita GDP of South Aegean Region is higher of the average per capita GDP of Greece during period Specifically, it is 112,5% of of the average per capita GDP of Greece during The diachronic development of per capita GNP of South Aegean Region, during period , presents stability, while it is maintained continuously above the average national level. The per capita GDP of South Aegean Region in units of purchasing force Percentage (%) Europe 15=100 Europe 15=100 Europe 25=100 South Aegean Region 73,9 79,8 87,9 Greece 65,9 67,7 74,6 Source: Newspaper Kathimerini 30/1/2003.
7 Diachronic development of GDP per Prefecture ( ) (%) Average Cyclades Average South Aegean Region Average Dodecanese Average Greece The increase of GDP per prefecture during the period is presented in the next table. Both prefectures showed important increase, the prefecture of Cyclades 40,3% and the prefecture Dodecanese 40,9%. The prefecture of Cyclades remained 6 th place, where it was found in 1995 while the prefecture Dodecanese improved its place (from 3 rd was found in 2 nd ). Prefectures The per capita GDP of Prefectures in comparison with South Aegean Region Per capita GDP Increase % Indicator (Greece=100) 98/ Classification 1998 Classification 1995 Increase of Classification Cyclades , ,13 40,3 112,6 105, Dodecanese , ,26 40,9 125,6 117, Source: GENERAL SECRETARIAT OF NATIONAL STATISTICAL SERVICE OF GREECE, Regional Indicators
8 Gross value added by industry (A3) In million euro. At current prices Agriculture, forestry, fishing Industries Industry including energy and construction Services Region of South Aegean Prefecture of Dodecanese Prefecture of Cyclades Source : GENERAL SECRETARIAT OF NATIONAL STATISTICAL SERVICE OF GREECE 8
9 Gross domestic product In million euro. At current prices Region of South Aegean Prefecture of Dodecanese Prefecture of Cyclades Source : GENERAL SECRETARIAT OF NATIONAL STATISTICAL SERVICE OF GREECE Per capita gross domestic product In million euro. At current prices Region of South Aegean Prefecture of Dodecanese Prefecture of Cyclades Source : GENERAL SECRETARIAT OF NATIONAL STATISTICAL SERVICE OF GREECE 9
10 The characteristics of primary, secondary and tertiary sectors. Primary sector The territorial physiognomy of the islands of the South Aegean Region is mostly mountainous. The 72,5% of the territory is mountainous. The vegetate production is characterised by the strong presence of cultivation. The vital production constitutes a remarkable sector of economic activity for the South Aegean Region. The constant reduction of the engaged in the primary sector workforce creates inequality problems in the participation of this sector in the Gross Domestic Regional Product. From the totality of the Region s territorial surface, only 16,7% is cultivated. For stockbreeding, 51,6% of the total surface is used, while the forests cover 13,2% - the Prefecture of Dodecanese possesses this percentage. The vegetable production is characterised by the strong presence of annual cultivation, the economic interest is focused on wine-grapes, citruses and olive groves, mostly for the olive oil production. The animal production constitutes an important factor of economic activity for the South Aegean Region, with strong presence in the totality of economy and special emphasis in the sheep feed. As far as the fishery sector, it is noticed that the slow rate of modernization and the defective control of the piscatorial methods create the inhibitory elements in the development of this field. The development of fishing activities is important especially for the small islands. The following table presents the evolution of the agricultural production in the Region during the period Analytically: The Region has the second smaller proportion of cultivable areas in the country with 2%. The totality of cultivable areas has been decreased (26,7%), as well as the totality of the irrigated, cultivated areas (5,9%). The apple production had the higher increase during the period (276,6%), the production of cheese (increase 24,8%) and olive oil (increase 17,6%) follow. On the contrary, the tomato production was decreased (18%), as well as the production of citruses (decrease 17,7%) and milk (decrease 15,5%). Secondary sector The size of the Small & Medium Enterprises, which are the majority of the enterprises in this sector, doesn t allow the exploitation of programs for the implementation of investing plans as they refer to bigger size of enterprises. The manufacturing activity in the South Aegean Region concerns mostly small sized handicrafts, with some exceptions, such as the Neorion Shipyards in the island of Syros. The last years ( ), a stabilization in the percentage of occupied with the manufacturing activity personnel in 7% is appeared. However, during the period , the Prefecture of Cyclades showed a serious reduction in manufacturing business. The island of Syros, where the biggest portion of the manufacturing sector of the Prefecture of Cyclades is concentrated, was characterised as a diminishing industrial area. The processing units of the rural products, ready-made clothing, juices and refreshers, furniture have important presence in the Region. 10
11 Agricultural production (South Aegean Region) Description Years Totality of cultivation (1000 m 2 ) Irrigated, cultivated areas (1000 m 2 ) Olive oil (tons) Tobacco (tons) Cotton (tons) Wheat (tons) Rice (tons) Citruses (tons) Apples (tons) Peaches (tons) Potatoes (tons) Tomatoes (tons) Meat (tons) Milk (tons) Soft cheese (tons) Hard cheese (tonsι) Eggs (pieces in thousands) Source: National Statistics Service of Greece In the years , 56 licenses of operation were given to new industries, 1,4% of the totality. The 0,6% of the work of the manufacturing and constructing units of the country correspond to the Region s enterprises. Tertiary sector The importance and the development of the tertiary sector in the South Aegean Region is continuous and ongoing as this sector participates in the employment with 61,44%. As it has been mentioned before, tourist services outweigh. The number of the engaged in this sector workforce has been quintuplicate during the period The wholesale and the retail commerce is an activity that occupies almost 23% of the employees in the tertiary sector. Important thing is the connection of all branches with tourism. The support services of the productive sectors and the social services show great development, mostly in the big cities of the Region (islands of Rhodes and Syros). In the Region, 117 new hotel facilities were created during the period The number of hotel beds was also increased and that shows the investment that the Region is doing in the tourism sector. Up to now, this policy has been successful, as the totality of overnight stays in the hotels of the Region was increased by 7,4% (from to ) in the period
12 Tourism Indicators (South Aegean Region) Cardinal Numbers Hotels Hotel beds Totality of overnight stay Source: Hellenic Organization of Tourism The following table represents the development of overnight stay in the Region during the period According to the facts, we can see that: The overnight stays of the Region represent 27,3% of the totality of the country. The overnight stays of the foreigners in the Region stand for 33% of the totality of the country. The overnight stays of the domestic population in the Region represent 3,1% of the totality of the country. The overnight stays of the foreigners in the Region have been increased, as from overnight stays in 1997 they ascended to overnight stays in 2001 (percentage 13,5%). The overnight stays of the domestic population in the Region have also been increased, as from overnight stays in 1997 they ascended to overnight stays in 2001 (percentage 7,5%). Overnight stays of tourists in hotels in the Region and the country during the period Overnight stays of foreign and domestic population Totality of the Region Totality of the country Year Alteration (%) /97 99/98 00/99 01/00 01/ ,0 13,3-1,2-4,0 13, ,0 6,6 1,7 0,4 15,4 Overnight stays of foreigners Totality of the Region Totality of the country Year Alteration (%) /97 99/98 00/99 01/00 01/ ,5 14,4-1,3-3,9 13, ,4 7,6 1,8-0,1 16,5 Overnight stays Year Alteration (%) of domestic population /97 99/98 00/99 01/00 01/97 Totality of the Region ,9 2,2 0,2-5,6 7,5 12
13 Totality of the country ,6 3,4 1,5 2,2 12,0 Source: Hellenic Organization of Tourism Percentage (%) alteration of the overnight stays of foreign and domestic population 98/97 6 7,0 99/98 6,6 13,3 00/99-1,2 1,7 01/00-4,0 0,4 01/97 13,0 15,4-5,0 0,0 5,0 10,0 15,0 20,0 South Aegean Region Greece The following table presents the evolution of the fullness of the hotels in the Region during the period According to the facts of the table, we can see that: For the years , the fullness of the hotels increased by 21,6%. For the years , the fullness of the hotels in the South Aegean Region remains higher than the one of the country. Fullness of hotels in the Region and the Country during the period Fullness of hotels Percentage of fullness (%) Alteration (%) /97 99/98 00/99 00/97 Totality of the Region 67,7 75,2 78,2 82,3 11,1 4,0 5,2 21,6 Total of the country 58,4 61,1 63,5 65,0 4,7 3,8 2,4 11,3 Source: Hellenic Organization of Tourism 13
14 Hotels fullness (%) ,4 67, ,1 75, ,5 78, , South Aegean Region Greece 14
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