Why Invest in Messinia
The traditional Greek tourism model is failing. The “beach and sun” model is no longer adequate as cheaper alternatives such as Turkey, Egypt, and Croatia are gradually stealing Greece’s sunshine. If Greece wants to retain its status as one of the most popular vacation spots in the world, and for further growth to be realized, the Greek tourism model must be revamped with a greater emphasis on specialized tourism and in particular, golf. Messinia is at the forefront of the metamorphosis to shed the “mass tourism” image and position Greece in a more “status” market. Currently Messinia is practically untouched by tourism, despite boasting some of the most magnificent natural and archaeological sights Greece has to offer. But this is soon to change.
The President of the Greek National Tourism Organization, Mr. A. Kalogeropoulos, stated that, “leaders of the tourist industry must change their long-term plans, focusing attention on higher quality tourism and offering more choice in terms of theme holidays.” Take one look at Messinia today and it is clear to see that some people have taken Mr. Kalogeropoulos suggestion to heart. T.E.M.E.S. (Tourism Enterprises of Messinia SA) has been planning Navarino Resorts, the largest tourism development under construction in the Mediterranean, for the past 20 years. When the doors finally open for operation in the summer of 2009, Navarino Resorts will redefine the meaning of vacationing in Messinia.
This project is the prototype of tourism differentiation and strategic repositioning as it will be composed of four sub-developments, each with its own theme. The first phase of the project, Navarino Dunes, will have a greater family orientation while later phases will be composed of higher class country clubs, tour oriented developments, and sports oriented developments. Just the first phase of Navarino Resorts will include four 5-star hotels, two signature golf courses, a thalassotherapy center, two spas, a conference center, indoor and outdoor athletic facilities, two creative centers for children, multiple restaurants, a water park, and many recreational experiences unique to the region. This specialized tourism should target higher income tourists by offering a wide array of niche holiday experiences. Due to the development of Navarino Bay Resort, this under developed and forgotten region will have the opportunity to develop its infrastructure and establish its position in the burgeoning upper market tourism industry.
The decision to invest in Messinia before the opening of Navarino Resorts may prove to be as lucrative as inside trading on the Wall Street. It is not a secret that Messinia is one of the most underdeveloped prefectures in Greece, in regards to infrastructure and tourism. But the fact that Messinia will be the home of one of the largest integrated golf resorts in the Mediterranean, boasting 11 hotels, and 7 golf courses, spanning over 10,000,000 m2 is still for the large part, a very well kept secret.
It would be advisable to begin investing in Messinia before the economic effects of this €866 million euro investment in integrated golf resorts start sending shock waves through the local economies of the region. In countries such as Portugal, Spain and the USA, golf resorts have been shown to be extremely powerful economic drivers. This is because golfers not only spend money on their rounds of golf but also purchase goods and services from supporting industries. As these businesses capitalize on the extra revenues incurred from the neighboring golf course, they will hire additional employees and buy more inputs from other businesses. It is estimated that over 2,000 jobs are expected to be created in Messinia from the creation of Navarino Resorts.
NAVARINO REAL ESTATE AND DEVELOPMENT" IS NOT AFFILIATED IN ANY WAY WITH "COSTA NAVARINO RESORT" OR "T.E.M.E.S. S.A.
COSTA NAVARINO RESORT: To be completed by summer 2009
This process of wealth transfer, initiating from the golf courses, will work its way throughout the entire local economy of Messinia, benefiting the core golf industry, but also the ancillary industries spawned by the demand of golf. Furthermore, the creation of large integrated resorts may provide additional income for property owners and developers who will benefit from real estate premiums. This is called the multiplier effect and golf tourism, perhaps more than any other tourism niche, exhibits a particularly high multiplier due to the numerous interdependencies between operators.
It is estimated that 50% of golf tourist expenditure is on items other than hotel, and only 15% of the total expense is towards golf fees. That means that 35% of golfers’ expenditures are on travel and transportation contributing to a greater multiplier for the local economy.
The most distressing problem with the Greek tourism industry can be surmised perfectly by the following statement.
“It is inexcusable for a country like ours with an exceptional climate, a rich culture and varied inland scenery to have a tourism period of four or five months. Our goal is for Greece to be a destination all 12 months. We can achieve this by attracting high-income tourists who can afford much more than the sea-sun-sights combination and we can offer that." -- Dimitris Avramopoulos, Tourism Development Minister, Greece
With an estimated 8 million golfers in Europe and growing, golf is the ideal form of specialized tourism to alleviate dependency on the three peak summer months. The Tourism Development Minister states that it is inexcusable to have a tourism period of four or five months and also mentions the need to attract more “high-income” tourists. Golf tourism solves both of these issues. In regards to attracting more “high-income” tourists, golfers tend to be an affluent niche of tourists spending 20-40% more than typical leisure tourists, an average of €370 per day. Furthermore, 40% of golfers internationally make at least three trips per year to try out new courses with an average stay of one week per trip. 52% of UK golfers and 70% of German golfers take golf-related holidays with a common tendency to favor sunshine destinations in the Mediterranean as to temporarily escape their harsher climates
The peak golf season for countries with Mediterranean climates such as Spain and Portugal, are the shoulder months of November to April, which are coincidentally the months that Greek tourism is typically stagnant. Golf tourism during these traditionally off-season months can extend the tourist period allowing tourist infrastructure to remain open. This would lead to the year-long sustainability of tourism related employment positions, ceasing the pattern of winter economic hibernation. This would benefit the entire tourism industry by making it easier for the small medium tourist enterprises (SMTE) to reinvest into improving their facilities, thus improving the image of the entire industry. At the same time golf is a crucial element in the viability of SMTE, as this is a basic condition for hotels and other tourism facilities to enter the winter plans of major tour operators.
Another reason to invest in Messinia is the upcoming boom it will experience in residential tourism. It is not difficult to fall in love with the natural beauty, mild climate, and rich culture of this region. Especially if you are part of a very large demographic that enjoys golf, lives in northern Europe, and has to endure a dismal climate of never ending rain and very little sun.
“The core months of November through to April are key. Golfers do not wish to play in the full heat of Greek summer... 65 million Europeans will be retiring full-time to Southern Europe. Approximately 9 million will retire in Greece. And we expect approximately 1-1.5 million retirees [to] be settling in Greece in the next 5 years."
Messinia’s developing golf market would help attract many Northern European retirees as Dr. Papadimitriou stated. Studies have shown that 10% of golf tourists buy homes close to their preferred holiday golfing destination with a starting price of 120,000 Euros, moving upwards in relation to income allowances. Thus the development of golf tourism in Messinia could be the catalyst for a real estate boom as foreigners prefer buying summer homes adjacent to golf courses. This development becomes more important when one considers that a modern golf course has a major impact on a region’s property market. As previously mentioned, golf courses are usually accompanied by hotels, housing units, conference centers and marinas, therefore becoming complete tourism resorts, creating jobs and lifting the price of properties in those areas.
Although Messinia may not be the most price competitive destination anymore thanks to the Euro, its natural beauty, climate and culture are significant advantages over rival countries. The repositioning of Messinia as a more high class destination is an essential driver in the future economic and social progression of the region, but keeping the cultural identity intact is what will give it the competitive advantage over other neighboring countries. And that is why you should invest in Messinia!
