Cyclades: Margins for new hotel investments are tight

One after the other comes “No” to the competent authors of new hotel investments in the Cycladic islands, as in the face of the municipalities and services demanded by the tourist development.

The reason is the suspension of the consultation on the strategic impact of the United States by Eshase Santorini Valtrada Volcanic Spa in Vlycha clear fishing before the end of the special plan of the city. Just one day ago, the decentralized management of Aegean rejected the environmental study for a new hotel complex of KOFOs.

The municipality of Thira, in a recent announcement, countered that it is against the strategic investment outside the plan, which is subject to Santorini “exceeding its carrying capacity”.

It calls for the abolition of the exceptions that allow the continuation of strategic investments despite the suspension of the issuance of building permits outside of the plan, for the institution of a general ban on such investments in the Cyclades and for the unwavering observance of the public commitment of the Secretary General of the Environment that no new investment will be licensed before the completion of the Theras Project.

The municipality emphasizes that the further development of tourism not only does not strengthen the local economy, but weakens the incomes of those in businesses and irreversibly changes the natural landscape.

Not in a Cave hotel in Serifos

Consequently, in Serifos, the decentralized administration of the Aegean rejected the environmental study for a 93-bed underger hotel in Ganema, submitted by the Company Serifos Village Ike. The decision was based on the unanimous negative opinion of the PESPA, on the remarks of the Directorate of Natural Environment of the Ministry of the Interior for possible fragmentation of a protected habitat and on incomplete documentation of the adequacy of water supply, as stated by the Municipality of Serifos and the Directorate of Waters of the South Aegean.

The Presidential Decree of 2002 that sets the restrictions on construction and the status of “scenery of particular natural beauty” where the island is also owned. In KOs, the Municipal Committee recently gave a unanimous negative opinion on the expansion of the Utopia Blu 5 Hotel from 50 to 136 beds in the Tigaki Area.

The property, owned by BLUE OCEANIC HOTEL AXTE, is located within a Special Conservation Zone of the Natura 2000 network and raises issues of water supply adequacy, burdening the existing infrastructure and the need to complete the island’s carrying capacity study. The Asfendi Community has also unanimously formed a negative position.

Brakes on other islands too

Innovation is not limited to the three islands. In the last few months alone, at least six major tourism investments have met with negative opinions from municipalities and communities:

Rhodes (June 2026): Refusal to expand the Lardo complex until legalizing abuses and ensuring water supply.
Koskinou Rhodes (August 2025): Negative opinion for complex accommodation of 1,682 beds due to lack of water and insufficient alternatives.

IOS (May 2025): Denial of eschase for Calili Loemo until local city plans are completed.
KEA (June 2025): ‘No’ to Binungsuran and Sea Kea Project due to over-pumping of the aquifer and lack of provision for staff.

Milo (August 2025): Unanimous refusal for a complex of 94 beds of provatas due to the impossibility of a new water supply and the need for an institutional framework for natura. Also recently, the municipality of Milos decided to file a request for a request for a temporary suspension of the construction permit and environmental approval regarding the expansion of the White Coast Hotel Complex in Mytakas.

Paros: Assignment to write a memorandum against the Koolmphra pes proposed by Ekter Sa, after the relevant decision of the Council of Ministers in 2023.

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