Tourism of Tomorrow 2025: The Dynamic Relationship between Tourism and the Real Estate Market
The terms of coexistence between real estate market and tourism were highlighted at the 8th Conference of the ACT (American College of Thessaloniki) Academic Program in Tourism and Hospitality, which took place on 4 April 2025 at Capsis Hotel Thessaloniki.
The Conference focused on the impact of real estate on tourism infrastructure and services, the development of areas that are off the tourist map, and the shaping of a region's identity based on real estate strategies. The impact of primary and holiday home business development on existing tourism businesses was also discussed, as well as how the Golden Visa institution affects tourism development and the demography of regions - especially the outermost regions. In addition, the need to balance investment interests, sustainability, and the protection of local communities and the environment was highlighted.
The Conference brought together leading professionals from the tourism, real estate development, and investment sectors, presented research and case studies, and discussed the challenges and opportunities arising from cooperation between the two sectors. Opening remarks were delivered by: Anestis Anastasiou, Coordinator of the Academic Programs in Tourism and Hospitality at ACT (American College of Thessaloniki), Dr. Nikos Hourvouliades, Director of the ACT Entrepreneurship Center, and Dr. Prodromos Monastiridis, Chairman of the Board of Directors of the Thessaloniki Convention Bureau.
Anestis Anastasiou, Assistant Professor, ACT, Coordinator, Hospitality & Tourism programs
Saudi Arabia: Strategy to Attract 150 Million Tourists by 2030
Intending to attract 150 million tourists by 2030, Saudi Arabia is setting ambitious targets to increase the tourism sector's contribution to its GDP, reaching 16%. As Konstantinos Dendrinos, Chief Executive Officer, Nesaj Real Estate Co., Saudi Arabia, pointed out in an online webcast, Saudi Arabia has realized the importance of diversifying or "decoupling" the country from oil production, as it recognizes that natural resources are not inexhaustible. Thus, it has already launched major tourism projects to make it attractive to foreign visitors. In 2015, Saudi Arabia welcomed 64.5 million tourists, with 90% choosing it for pilgrimage purposes, while in 2021, the number of tourists increased to 67.3 million. In the same year, Saudi Arabia launched $1 trillion in investments to develop tourism infrastructure, focusing on developing five-star hotels and luxury villas.
According to the International Monetary Fund, 2034, Saudi Arabia's GDP is expected to reach three trillion dollars, up from one trillion dollars in 2023, with tourism accounting for 16% of its economy. Another important point mentioned by Mr. Dendrinos is the adaptation of the Saudis to the needs of the tourism sector. Since providing services to tourists is not a tradition for the country, a training program has already been launched to train the local population to meet the new needs arising from the development of the tourism sector and the reception of foreign visitors.
The Importance of Geography in Tourism and Real Estate Development
"Tourism has two pillars: geography and marketing. Until now, we have mainly paid attention to the latter. But the time has come to highlight the importance of the first," said George Zografos, PhD, Property Development Consultant, Adjunct Professor in Tourism, Hellenic Open University. Northern Greece's proximity to the Balkans and Eurasia allows it to make the most of the advantages of the neighboring relationship, Mr. Zografos noted. As he stated,
in 2024 foreign investments—mainly from neighboring countries Bulgaria and Romania—amounted to €3 billion in the region, compared to €2.133 billion in 2023. He emphatically highlighted that total investments during the period 2015–2024 reached €153.1 billion. He noted that investors are typically between 40 and 60 years old, with 50% investing in the apartment market. He made special mention of Porto Heli in the Peloponnese, emphasizing that it continues to attract a significant number of major real estate investors. He also estimated that nearby islands and areas, such as Spetses, are likely to benefit soon as well.
The purchase of residential property by visitors wishing to invest in their holiday destination is highly attractive to prospective owners, as they evaluate it as an investment opportunity by subletting it when they do not use it. However, this also puts pressure on existing tourism businesses operating under a more binding and strictly regulated legal regime. In addition, interference with the natural environment and landscape, which is the main reason for visitors, may undermine the tourism product. Mr. Zografos referred in particular to Northern Greece and the increased purchases by foreign citizens, especially in areas such as Halkidiki, Pieria, and Thrace. However, the use of the Golden Visa program also raises concerns, especially with the massive purchase of real estate by foreigners in border areas such as Thrace.
George Zografos, PhD, Property Development Consultant, Adjunct Professor in Tourism, Hellenic Open University, Griroris Avanidis, Head of Press & Communication, Kourtidis Group, Stefan Merkenhof, Director of Tourism & Leisure, CBRE Atria, Managing Consultant, GBR Consulting, Tasos Andreadis, Chief Executive Officer, STANTA S.A.
Theme Parks and Investments in Greece
Griroris Avanidis, Head of Press & Communication, Kourtidis Group, spoke about the attractiveness and prospects of Theme Parks in Greece and their lagging development compared to Europe. He stressed that this is also the reason for the high investment interest of foreign and Greek investors. "We expect a boom of specific projects in our country, and in Northern Greece, with multiple benefits," Griroris Avanidis noted, presenting the new major project of Kourtidis Group, "Alexander Theme Park." This is the first educational/entertainment Theme Park worldwide dedicated to the life and career of Alexander the Great. Work will begin in 2026 between Kavala and Serres, near Amphipolis. "The excavation of the tumulus Kasta, and the undeniable fact that important parts of the history of Alexander the Great took place in that place, is a very good opportunity to create a Theme Park, the first in the world that will be dedicated to him," stated Mr. Avanidis. He added that real estate helps create a tourism product in off-the-map areas, such as the East Kavala region, "which currently lives in the shadow of the prominent tourist area of West Kavala but will soon attract attention and gain added value."
The Development of the Hotel Market in Thessaloniki
The hotel market in Greece and, especially in Thessaloniki, continues to grow steadily, said Stefan Merkenhof, Director of Tourism & Leisure of CBRE Atria and Managing Consultant of GBR Consulting, during the presentation of a relevant survey. Particularly impressive, he pointed out, is the trend towards five-star hotels, which are gaining more and more ground in the market, while hotels with fewer stars seem to be on the decline.
Mr. Merkenhof said that by 2024, 4,600 hotel units will be registered in Greece, with 151 of them located in Thessaloniki. Of the hotels in Thessaloniki, 50% are in the city center. He pointed out that the Greek market is characterized by a diverse and competitive landscape, with large international chains, Greek brands, and local entrepreneurs. In his remarks, Mr. Merkenhof highlighted the boom in the construction and sale of apartments to foreign citizens, an activity that is now competing with traditional hotel units.
Tourism as a driver of regional development
"This season is developing positively and confirms the role of tourism as a key pillar of GDP, with particular importance for regions that do not have other development opportunities," noted Tasos Andreadis, Chief Executive Officer, STANTA S.A., stressing that tourism activity distributes economic growth more fairly across the territory. Properties in remote or less developed areas are now being exploited more creatively and productively, giving new impetus to local communities. He stressed that short-term rentals are not necessarily competitive with existing tourist units as long as they are subject to a clear legal framework and rules.
"When visitors choose a destination, they 'consume' all the local products and services, favoring other businesses," he said. He underlined the challenges for the natural environment, especially in areas of intense tourism development. This debate now concerns Greece, having started from countries such as Spain, where the effects of over-saturation are visible both in the environment and in urban areas. According to him, there is a need to shift the tourist flow towards less saturated destinations, reducing environmental pressures.
Mr. Andreadis stressed the need to create modern business spaces in Thessaloniki and throughout the country. He also noted that the operation of non-state universities would very soon highlight the need to implement projects on campuses, dining, and recreation areas.
