2nd International Rhodes Tourism Forum 10 11 November 2006 Eleni Desylla Tourism Sector Manager HELLENIC CENTER FOR INVESTMENT 1
THE GREEK INVESTMENT INSTITUTIONAL FRAMEWORK AND THE EXISTING AND FUTURE INVESTMENT OPPORTUNITIES WITHIN THE AEGEAN REGION 2
Presentation Structure: Tourism Sector in Greece - a successful profile Reasons to invest Investment Opportunities New investment law 3200/2004 The Hellenic Center for Investment Success stories 3
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Greece: A successful profile High Level of political and economic stability Significant improvements in macroeconomic performance Growing international confidence in the Greek Economy EMU participation Successful Olympic Games Major strides in competitiveness 5
Tourism Sector: Ranks in the top -15 destinations More than 15,5 million visitors in 2005 Expected to grow by 10% per annum Contributes 14.3% to total GDP 6
Tourism Sector: For 2004, travel & tourism generated Euro 30,1 bn of economic activity 258,479 jobs directly related to tourism (6,4 of total employment) 659,719 jobs indirectly related to tourism (16,5 of total employment) 7
Human Resources: 16 public Schools of tourism professions, plus University level studies for Hospitality Management 25% of the Greek labour force has a university degree 54% of Greek managers have post graduate degrees 45% of Greek managers speak a foreign language 8
Employment related to tourism (% total employment) 25% 23% 21% 19% 17% 15% 13% 15,1% 15,1% 16,4% 16,4% 15,6% 16,0% 17,0% 17,5% 17,3% 15,4% 15,9% 11% 9% 7% 5% 1996 1997 1998 1999 2000E 2001E 2002E 2003E 2004E 2005E 2006E Πηγή: WTTC 9
18000000 Number of Arrivals in Greece 16000000 14000000 16251000 12000000 10000000 8000000 6000000 4000000 2000000 8873000 10130000 13096000 0 1990 1995 2000 2004 10
Arrivals per decade 1950-2000 1200% 1098% 1000% 800% 600% 400% 200% 0% 1950 303% 200% 228% 174% 133% 61% 68% 139% 50% 73% 48% 60% 42% 52% 1960 1970 1980 1990 2000 Παγκόσµια Ευρώπη Ελλάδα Παγκόσµια Ευρώπη Ελλάδα Πηγές: WTO (2003), ΕΣΥΕ/ΕΟΤ (2003) 11
Number of Arrivals by Air January August 2006 RHODES 2004 862.085 2005 887.040 2006 1.003.345 % 13.11 KOS 457.862 451.071 496.777 10.13 DODECANESE TOTAL 1.319.94 7 1.338.111 1.500.122 12.11 12
3000000 2500000 2000000 1500000 1000000 500000 0 Origin of Greece s Visitors by Country, 2005 13 UK Germany Italy B-LUX France Asia Austria Sweden Amerika Denmark Switzerland Norway Russia Cyprus Spain Australia Africa
Number of Hotels and Beds in Greece, 2005 Classification 5 stars 4 stars 3 stars 2 stars Others Total Hotels 155 944 1.712 4.496 1.729 9.036 Beds 56.888 173.431 159.351 233.315 59.065 682.050 14
Number of Hotels and Beds in Rhodes, 2005 Classification Hotels Beds Dodecan ese Rhodes Dodecanese Rhodes 5 stars 14 12 10.188 8.952 4 stars 147 104 48.874 33.003 3 stars 215 122 22.512 13.710 2 stars 514 179 30.866 12.738 Others 98 69 3.031 2.246 Total 9.036 486 682.050 70.646 15
Reasons to invest in Greece 16
2005-2006 More than 900 million euro new Tourism Projects 50 new hotel units More than 4600 new beds in 5* hotels in Rhodes 26 new Conference Centers 3 new golf courses 19 Thalassotherapy Centers 17
Global demand for tourism and travel will be: Doubled the following years but with Differentiation of the product South Aegean will profit from this, as it already: Improves the supplying tourism product Develops new forms of tourism (golf, spas, health centers, etc) 18
More investments needed Sustainable development Performance of Greece is improving The key to investment success is good governance Co-operation with local authorities Private Public Partnerships 19
World: The Best of Times for Tourism Travel and tourism WTTC $1.6 trillion, expected to grow by 4.5% a year over the next 10 years, with double-digit growth expected from emerging regions such as China, India and Russia. According to the UNWTO, tourism represents 40 percent of all exports of services; revenues have grown far stronger than international trade; tourism has spin-off effects on construction, agriculture, telecommunications, and employment. UNWTO claims that international tourist arrivals grew from 25 million in 1950 to 808 million in 2005 spending US $2 billion per day. One in eight of the world s tourists choose a destination in the Muslim world, despite terrorism and bird flu bad news, 20
Greece: International arrivals increased almost 6% in 2005 to 12.7 million reversing a decline from 2002-04; Tourism receipts increased to 11,000 million euros-- nearly 7% in 2005. Greece's arrivals percentage increase matched Spain, exceeded Cyprus, but fell behind Croatia s 7% & Turkey s 20.38 % 21
Strengths of Greek tourism: Increased number of tourist arrivals forecasted Diverse natural beauty Image of Pre-classical, Classical and Byzantine periods of history Vibrant folklore Home of Mediterranean products & diet Qualified personnel One of the lowest crime rates in the world 22
We target to: Upgrade our tourist infrastructure Enrich and differentiate our product Penetrate new tourist sub-sectors Attract high income tourists Provide luring competitive packages for low season periods Develop alternative tourism projects 23
Invest in the Greek tourist sector is an opportunity because of: The strong increase of countries awareness after the 2004 Olympic Games The hosting of major sports and cultural events of global interest (i.e. Eurovision 2006, Champions League 2007) The new market and promotion plan of the Greek regions The generous investment incentives up to 1,4 bil. Euro for 2007-2013 The simplification of the licensing process The need for specialized infrastructure (golf courses, spas etc.) 24
South Aegean: A promising opportunity In the crossroad of 3 continents Significant improvements in infrastructure Diverse cultural heritage Ideal climate Opportunities through public land development Afandou golf course Southern Rhodes Opportunities through municipalities land (PPP) 25
Investment Opportunities: Upgrade resorts Conference centres Golf courses Health and fitness centres Spas Marinas Eco-tourism and Agro-tourism projects Entertainment centres 26
Convention Centers: Culture and history Mother of all Sciences Ideal climate Natural beauty Lack of convention centers 27
Golf resorts: Ideal climate for golfing all year round 5 existing 18 holes courses Newly operated course in Crete Existing courses to be renovated More underway Identified suitable land for development 28
SPAS - Thermal Springs: Nearly 800 thermometallic springs of great value Many have been classified as therapeutic Most of them are underdeveloped or operating with outdated facilities Extraordinary environment (natural & Historical beauty) Land to be leased Attractive subsidies new framework 29
SPAS-Thalassotherapie: Wonderful seaside Excellent water quality Rare minerals combined with Mediterranean gastronomy Nature activities 30
Theme parks: Aiding funds Themes from Ancient and modern history More than 46 million nights in hotels spend by foreigners More than 15 million nights in hotels spend by domestic tourists 31
Eco-tourism: Diverse natural environment Mediterranean flora & fauna Nature reserves Mountain paths & rivers Virgin forests Rare combination of mountains and seasides 32
Agro-tourism: Traditional farms Organic products Rare healing herbs and condiments Mediterranean Gastronomy Traditional cookery 33
Marinas Connecting hundreds of islands unspoiled beaches New experiences Sports tourism Ideal climate Suitable environment Health tourism Ideal climate for recuperation Natural environment of extraordinary beauty Connection with major towns & health Centers 34
INVESTMENT LAW 3299/2004 35
Investment Law: ELIGIBLE BUSINESS ACTIVITIES UNDER LAW 3299/2004 The establishment or expansion of hotel units of a class not lower than 3 stars. The complete modernisation of operating hotel units, of a class not lower than 3 stars The complete modernisation of operating camping sites of a class not lower than 3 stars. The modernisation of hotel units for the creation of complementary installations (like swimming-pools). The conversion of traditional or preservable buildings into hotel units of a class not lower than 3 stars. 36
INVESTMENT LAW: The establishment, expansion, modernisation of special tourism infrastructure such as: MARINAS GOLF COURSES NATURAL SPA CENTRES THALASSOTHERAPY CENTRES HEALTH TOURISM CENTRES SKI CENTRES CENTRES OF TRAINING - SPORTS TOURISM AUTOCAR RACING CIRCUITS THEMATIC PARKS 37
Investment Law: Cash grant or/and leasing subsidy, for Rhodes, up to 55% of the investment cost Or up to 100% of the investment cost tax break Cash grant up to 45,5% of the labor cost for new employment for two years Investor must provide minimum 25% of investment cost 38
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ELKE: Promotes Greek investment opportunities to foreign investors Supports projects during implementation stage 40
ELKE: Handles applications for cash grants for projects exceeding 15m (approx. $ 19m) or 3m ($ 3.3m) and at least 50% of equity is in foreign capital Facilitates the co-operation between Greek and foreign business interests in the region Acts as advisor to the Government on changes to the legal and regulatory framework regarding investment 41
ELKE can assist you: Find land suitable for your kind of investment Obtain the necessary licenses Exploit the attractive incentives of investment Law Establish co-operation with the local authorities of all regions in Greece Being informed about privatization plans of State s assets 42
ELKE Assistance to Government: Project evaluation Reports and proposals for improvement of competitiveness and the elimination of investment obstacles Participation to all major Government committees on investment issues 43
Success stories: ACCOR-France- Hotels VILLAGE ROAD SHOW-Australia-Entertainment HYATT-USA-Hotels KEMPINSKY-Germany-Hotels TUI-GRECOTEL-Germany-Hotels, Resorts STER-UK-Entertainment 44
INVEST IN GREECE 45