The massive project that Aldemar Resort is planning in the Peloponnese is anticipated to begin construction next spring. As the group's CEO, Alexandros Angelopoulos, told BnB Daily, the group is also turning to real estate development, choosing the Peloponnese, where it has invested in large pieces of land.

The mega project in the Peloponnese involves the reconstruction of a settlement that will be located within a city plan and will include 600 homes. The first work on the regional infrastructure (opening of roads, etc.) is currently under way. This is a green settlement with geothermal characteristics and very low energy consumption. 

THE NEGATIVE ASPECTS

Mr Angelopoulos stressed that at a time when the tourism model is being challenged, the group is proceeding with the development of a project that the market needs, "buying time," until the balance in tourism is restored. In particular, he said that at the moment there are "4 bad times and only one good one" for the tourism product. In particular:

• Borrowing costs are higher than in the last 25 years, and even the reduction in interest rates is much less than it should be
• The increase in all raw materials (energy, agri-food) has "gone out of control", with companies trying to maintain the balance by giving as much weight as possible to the price
• The purchasing power of the European consumer has declined and there is currently a retreat in relation to 2024 reservations. In the UK, which is one of the big markets for Greece, there has been an increase, but as Mr Angelopoulos said, consumers are more sensitive to offers, and given that this is a period of high offers, it is not surprising to see an increase. But when this period is over, the UK is one of the markets that will freeze, as it has this trend. The big market affecting seven others is Germany, which has been on a recessionary path lately, given that all of Europe's economies are "broken" in terms of spending power.
• The overtaxation of tourism creates challenges for industry professionals. He says that "instead of treating the growth model of Greek tourism as something positive, we overtax the one that generates revenue because direct and indirect taxes have increased."

AND THE POSITIVE CONTEXT

In the midst of this environment, Mr Angelopoulos also identified a positive context on which the development of the new project in the Peloponnese was based. At the moment, the market is recording the highest property price in Greece since 1994. "That's why we are moving forward with the investment, and that's why we sold in Crete and very expensively."

THE DISTORTING LENS OF ATHENS

As for the season, he explained that it is extended until the end of the year and estimated that this year will also be a "record year" in terms of overall figures but will not be a good year in terms of results.
Elaborating on his thoughts to BnB Daily, he explained that "the industry is making two timeless mistakes, counting capital and counting nationally on the performance of tourism.  We are, however, a diverse country with various tourism products. Athens, for example, has been doing very well recently and has lifted the overall factor. If we stick to that, we will have a final figure that potentially misrepresents the overall picture."

In particular, he explained that this year there has been a drop in Santorini, Mykonos, and Elounda in the expensive 5* hotels and an increase in the more economical ones. "We have data that confuses us. Many businesses over 60% are recording a marginal decrease in results."