"35 billion euros for the maintenance of the islands" - National Bank of Greece calls for investments in the next 10 years
The National Bank of Greece (NBG) announced this week that an investment of around 35 billion euros in infrastructure is urgently needed over the next decade in order for the Greek islands to maintain their position in the global tourism elite.
The NBG Economic Analysis Unit reported that this massive investment is necessary to improve key sectors such as transport, energy, water and waste management. The islands welcome approximately half of all foreign visitors.
The challenges go beyond securing funds and include creating a modern governance system that can coordinate priorities, allocate resources reliably, and channel funding into integrated projects. The Bank noted that this ability will be decisive in determining whether the islands’ current success will be gradually undermined by the inadequate infrastructure of the past or will be turned into a strategic advantage.
Greece is primarily an island tourist destination, with the number of visitors to the islands having doubled over the past 15 years and expected to reach 16 million visitors by 2024. The study highlighted that the Greek islands account for 11 percent of global island tourism, with seven of them ranking among the 30 most popular destinations in the world, comparable to iconic places such as Bali and Hawaii.
During the high season months, tourist density reaches up to 33 visitors per square kilometer per day, compared to only 2 to 3 in the rest of Greece and the Mediterranean. The population on the islands increases by an average of 50 percent during the season compared to permanent residents, putting more pressure on local systems than on the mainland, where the average increase does not exceed 5 percent.
The bank estimated that island economies need to add around €1.5 billion per year on top of the current €2 billion investment in infrastructure. This includes around €1 billion to cope with a seasonal 50 percent increase in population and €0.5 billion to cover the additional cost of the 15 percent “island fee.” In total, the investment needed amounts to around €3.5 billion per year, or €35 billion by 2035.
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