Spatial uncertainty remains one of the main obstacles to investment in Greece, particularly for foreign investors, according to the annual tourism report by the Institute of the Greek Tourism Confederation (INSETE).
Despite recent progress, including the launch of approval procedures for special urban planning schemes in island destinations such as Mykonos, Santorini, and Milos, the overall framework continues to discourage investment.
INSETE stresses the need for clear, flexible, and effective spatial planning that can ensure legal certainty while supporting sustainable development. The report notes that the share of usable land in Greece is significantly lower than in competing Mediterranean tourism markets and below the European average.
According to the study, about 35% of land outside cities and settlements is included in Natura 2000 protected areas, one of the highest ratios among participating countries. When forests, archaeological sites, streams, beaches, high-yield agricultural land, and other protected zones are added, the amount of land available for development is sharply reduced, INSETE notes.
INSETE underlines that development must proceed in a rational way that supports economic and social growth while safeguarding the environment. However, it notes that spatial planning has long been ineffective due to slow approval processes, overlapping regulations, and legal ambiguities. In many cases, plans are outdated by the time they are finalized.
The problem, INSETE says, is most visible in non-urban development zones, where fragmented and incompatible land uses spread across the countryside. This pattern, the report concludes, degrades the natural environment and increases the cost and inefficiency of infrastructure and public services, while failing to deliver effective environmental protection.