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ALGEAN PROPERTY FOCAL POINT: SOUTH AEGEAN SEA Trends, Dynamics and Perspectives in the Holiday Home and Hospitality Sector February 2018 1 SOUTH AEGEAN REGIONAL REPORT ALGEAN PROPERTY South Aegean Sea HOSPITALITY - EVOLUTION 2011 2016 % 87 144 65.5% 5* HOTEL EVOLUTION 13,406 19,715 47.1% 2011-2016 27,513 40,742 48.1% Units Bedrooms Beds TOURISM - KEY PERFORMANCE INDICATORS - OVERALL 2016 Total National Ranking* Tourist Receipts €3,136,000,000 1st Total Visitors 5,226,500 2nd Overnight Stays 39,996,119 1st 9-month 2017 Total National Ranking* Tourist Receipts €3,287,000,000 1st Total Visitors 5,083,400 2nd Overnight Stays 41,214,852 1st TOURISM - KEY PERFORMANCE INDICATORS - PER VISITOR National 9-month National 2016 Ranking* 2017 Ranking* Tourist Receipts/Visit €600 3rd Tourist Receipts/Visit €647 2nd Tourist Receipts/ Tourist Receipts/ €78 2nd €80 2nd Overnight Stay Overnight Stay Overnight Stays Overnight Stays 7.7d 3rd 8.1d 4th /Visitor /Visitor * Ranking achieved between the 13 regional districts in Greece 2 SOUTH AEGEAN REGIONAL REPORT ALGEAN PROPERTY South Aegean Sea OVERVIEW The South Aegean region is one of the thirteen The South Aegean region is considered the flagship of administrative districts of Greece. Geographically, the Greek tourism, welcoming the majority of foreign tourists region includes the island complexes of the Cyclades visiting the country. The diversity of the landscape, the and the Dodecanese. Its administrative capital is beautiful crystal sea shores and the rich archeological Ermoupolis, Syros. and cultural wealth are a source of attraction for tourists from all parts of the world. The region has a total area of 5,286 square kilometers and covers 4% of the country’s total area, with a The architectural design found in the region emerges as population of 309,015 (2.8% of the country’s total an attraction itself. The white and blue of the Cyclades population). It is comprised of 41 main islands and over has been celebrated to the ends of the world, while 200 islets. The most important are Syros, Mykonos, the Mediterranean-style villas in the Dodecanese are Paros, Naxos, Rhodes, Kos, and Patmos. embossed in the glamor and elegance of the region. HOLIDAY HOME MARKET Holiday homes in the South Aegean region have a stock. In the South Aegean region, as in all regions in great diversity in design and pattern due to the different Greece, the majority of the holiday home stock is private characteristics of each region. Influenced by various residences. The constellation of residential complexes is factors, each sub-region developed its own unique still not widespread, nonetheless there are some projects style. In the Cyclades one can meet the simplistic, yet in the region’s more established tourist destinations such impressive all-white, cubic shaped residences that, in as Mykonos, Paros, Santorini and Rhodes. combination with the endless Aegean blue, create an unparalleled visual. The Dodecanese islands on the The demand has remained high in the region, greatly other hand, as a reminiscent of the area’s Venetian assisted by the performance of tourism over the last few influences, exude a grandeur and sophistication that years combined with high yields. According to Algean impresses at first sight. Property’s latest report “Yield Report 2017: High End Holiday Homes in the Mediterranean” the top-4 The financial crisis that hit Greece in recent years had a performing locations in the area are Mykonos, Paros, clear impact on the construction industry, and the South Santorini and Rhodes. The markets that the region Aegean region was no exception. As a result, there were mostly attracts are from Central Europe, Scandinavia, no major changes in the holiday home stock in the area as the US and the Middle East, with the latter showing many construction projects had stopped due to a lack of a particular interest in the Cyclades. The Dodecanese liquidity. However, in the last two years, some individual mostly attract buyers from German speaking countries projects have begun developing, though the volume and Great Britain. The perspective investors are mostly still remains low. In addition, the sector is expected to looking for 3-4 bedroom villas, with high quality fittings, benefit from the ever growing performance of tourism; great sea views and close proximity to the beach, with many hospitality projects that are under way in the area the average designated budget varying from €500,000 will include the construction of high-end residences, to €1,000,000. improving the quality and quantity of the existing 3 SOUTH AEGEAN REGIONAL REPORT ALGEAN PROPERTY South Aegean Sea HOSPITALITY & TOURISM The South Aegean is a region that can satisfy even the with €600/visit, coming behind Crete (€682) and the most demanding visitor. From cosmopolitan restaurants, Ionian (€612), 2nd on Receipt/Overnight Stay category stylish bars and five star hotels and villas, to picturesque with €78/overnight stay, only behind Crete (€79) and 3rd alleys, traditional taverns and deserted beaches, the on Average length of stay with 7.7 days, being behind area is a canvas of experiences, unrivaled beauty and both Ionian region and Crete which recorded 8.7 days. authenticity. The results for the 9-month in 2017 are very encouraging, In recent years, the South Aegean Region has as they show an increase in all categories compared to systematically invested in upgrading its tourist product the corresponding period in 2016, paving the way for a in order to maintain its positive performance in tourism, new record year for the region. More specifically, tourist relative to competitive destinations in the Mediterranean. receipts record a +15.8% increase and account for Despite the fact that the total number of hotel units 25.9% of the total receipts, visits are higher by +10.4% showed a marginal increase of only +0.7% in the last 5 and account for 19.0% of the total visits while overnight years, the product was significantly upgraded due to the stays are up by +3.0% and account for 22.3% of the arrival of many new 5-star hotels in the market. More total overnight stays in the country. In terms of the key specifically, based on the latest figures, the total number performance indicators, for the 9-month 2017, South of 5-star hotels in the region reaches 144, recording an Aegean region recorded €647 on the Receipt/Visitor increase of +65.5% compared to 2011(87 5-star units). category, recording an increase of +7.8% compared The total number of bedrooms and beds increased by to the corresponding period in 2016. On the Receipt/ +2.9% and +4.0% respectively while the corresponding Overnight Stay, the region achieved €80/overnight figures for the 5-star hotels recorded a significant growth stay, recording a +0.8% increase while on the Average of +47.1% and +48.1%. length of stay it produced an 8.1 average, recording an +3.8% growth compared to the same period in 2016. For 2016, the South Aegean Region recorded the highest performance within Greece in terms of total The forthcoming upgrading of 14 Greek regional airports visits, overnight stays and receipts. More specifically, it from Fraport-Schlendel is expected to significantly accounted for 18% of the total visits, coming behind the boost tourism in the region; it will increase the airports’ Central Macedonia Region. It also accounted for 21% capacity in the region and significantly improve airport of the total nights spent and 24.6% of the total tourist infrastructures, therefore improving the quality of the receipts, categories in which it ranked 1st. In regards to key services provided. Furthermore, many new hotel units performance indices, the South Aegean Region confirmed are on the pipeline, attesting the areas neverending its dynamic by ranking 3rd on the Receipt/Visitor category effort in improving its tourist product on all levels. 4 SOUTH AEGEAN REGIONAL REPORT ALGEAN PROPERTY South Aegean Sea Main Markets HOTEL CAPACITY 5* 4* 3* 2* 1* TOTAL 39 107 130 157 45 478 RHODES 9,895 18,702 7,911 6,559 890 43,957 20,450 36,078 15,229 12,382 1,717 85,856 33 52 29 31 34 179 MYKONOS 2,009 1,008 1,008 741 465 6,011 4,046 2,019 2,019 1,466 931 12,082 27 81 64 71 37 280 SANTORINI 984 2,191 1,253 1,745 577 6,750 2,028 4,188 2,458 3,326 1,160 13,160 25 39 54 133 6 257 KOS 5,881 7,858 3,643 5,118 102 22,602 12,282 15,709 7,182 9,612 200 44,985 3 18 30 71 16 138 PAROS 154 825 903 1,442 216 3,540 312 1,501 1,714 2,773 435 6,735 1 1 5 27 4 38 PATMOS 64 3 226 556 67 916 175 6 426 1,045 132 1,784 FACTS & FIGURES Population Total Land Population Density (people/ Shoreline Accessibility (km2) (2011 Census) km of land area) (km) from Athens 13-17h by ship, RHODES 1,4000.684 115,490 82.45 253 50min by plane 3-5h by ship, MYKONOS 86.929 10,172 118.10 81 40min by plane 5-7h by ship, SANTORINI 76.19 15,250 200.15 69 45min by plane 11-15h by ship, KOS 295.3 33,388 113.17 112 40min by plane 3-5h by ship, PAROS 196.308 13,710 65.00 120 40min by plane PATMOS 34.142 3,042 89.20 29 7.5-8h by ship 5 SOUTH AEGEAN REGIONAL REPORT ALGEAN PROPERTY Rhodes Key Markets | Overview In the southeastern part of the Aegean Sea, the world-renowned island of Rhodes or otherwise known as the ‘Island of the Knights’, stands proud and majestic, waiting to be explored inch by inch.
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