EU Funding to Support Sustainable Tourism Growth in Greece Through New Investments, Here’s All You Need to Know

Published on December 30, 2025

The Greek tourism industry is expected to experience substantial growth due to an increased contribution from the European Union towards financing new SMEs in the tourism sector. An increased funding level of €250 million will be used in Greece as part of the ESPA Competitiveness Program for the 2021-2027 plan, addressing the development of entrepreneurship, tourist services, and sustainability in the industry. The project is expected to make substantial contributions to improving the tourist infrastructure in Greece, making the country an attractive tourist destination worldwide.

A Strategic Move to Support Greece’s Tourism Sector

The EU funding increase was announced by Nikos Papathanasis, Alternate Minister of National Economy and Finance, in response to the overwhelming demand and high quality of investment proposals from across Greece. With this updated budget, more than 68% of the applications are expected to be approved, signaling strong support for the tourism sector, which plays a vital role in the country’s economy.

The revised budget now stands at €1.6 billion, up from the initial €1.09 billion. This increase in funding will directly support the establishment and operation of new SMEs, focusing on businesses that aim to offer innovative, sustainable, and high-quality services within the tourism industry. With 6,669 applications submitted, more than 4,600 investment projects are now set to be funded, a marked improvement from the 3,313 approved projects under the original budget.

The Growing Demand for Tourism Investments

Greece’s tourism industry has long been a cornerstone of its economy, attracting millions of international visitors each year. With its rich history, stunning landscapes, and world-renowned islands, Greece continues to be one of Europe’s most sought-after destinations. However, in recent years, the need for modernization, diversification, and sustainability within the tourism sector has become increasingly evident.

The increase in funding comes at a crucial time for Greece, as it seeks to adapt to new trends in tourism, such as eco-tourism, cultural experiences, and digital transformation. By supporting small and medium-sized businesses that focus on these emerging trends, the government is aiming to create a more competitive and resilient tourism sector. The investments will not only help improve the visitor experience but also enhance Greece’s attractiveness as a destination for tourists seeking more than just the typical beach vacation.

Promoting Sustainable Tourism Through Investment

A key focus of the funding increase is to promote sustainable tourism practices. The government recognizes the growing global demand for eco-friendly travel and is keen to support businesses that prioritize environmental responsibility. By fostering green tourism initiatives, Greece aims to position itself as a leader in sustainable tourism in Europe. This includes investments in eco-lodges, sustainable transport options, and projects that reduce the carbon footprint of tourism activities.

Sustainable tourism is also a way to spread the economic benefits of tourism beyond the well-known hotspots like Athens, Mykonos, and Santorini. The government is encouraging the development of tourism infrastructure in less-visited regions of Greece, providing opportunities for local communities to benefit from tourism and creating more balanced growth across the country.

Creating Jobs and Supporting Long-Term Growth

The EU-funded program is also expected to generate new jobs and contribute to long-term economic growth in Greece. By supporting tourism SMEs, the government aims to create higher-paying, quality jobs that will provide economic stability for local communities. This is particularly important in regions that rely heavily on tourism and are looking to recover from the disruptions caused by the COVID-19 pandemic.

Minister Papathanasis emphasized that the increase in funding reflects the government’s commitment to fostering entrepreneurship, improving the competitiveness of Greece’s tourism sector, and narrowing the investment gap. “Every euro of European funding contributes to development, creating new and better-paid jobs, and supporting long-term income growth,” he stated, underlining the broader socio-economic benefits of these investments.

A Diverse Range of Tourism Projects to Benefit from the Funding

The types of tourism projects expected to benefit from this funding are diverse, ranging from digital innovations in tourism services to infrastructure projects and cultural tourism initiatives. Many of the new businesses will focus on offering personalized, high-quality experiences that cater to specific interests, such as culinary tourism, wellness tourism, adventure tourism, and cultural heritage tours.

The focus on personalized and niche experiences is part of a broader shift in the global tourism industry towards more specialized offerings. Travelers today are increasingly seeking authentic and immersive experiences that allow them to connect more deeply with the destinations they visit. With the support of EU funding, Greece is positioning itself to meet these evolving demands by encouraging businesses that prioritize quality over quantity.

How This Initiative Will Impact Tourists Visiting Greece

For tourists, the increased investment in Greece’s tourism sector will result in a more enriching and diverse travel experience. As new businesses emerge, travelers will have access to a broader range of services, including eco-friendly accommodations, personalized tours, and authentic local experiences. These improvements will enhance the overall quality of their visit, whether they are looking for a relaxing vacation, an adventure, or an opportunity to immerse themselves in Greece’s rich history and culture.

Additionally, with more investments in lesser-known regions, tourists will have the chance to explore parts of Greece that were previously underdeveloped or overlooked by mass tourism. This shift will allow for a more sustainable distribution of tourist traffic, reducing the pressure on heavily visited destinations and giving travelers the opportunity to discover hidden gems across the country.

Looking Ahead: A Thriving Future for Greece’s Tourism

The boost given to the EU funding for tourism SMES is a major boost for the tourism industry of Greece. Greece’s commitment to innovation, sustainability, and diversification will place it on the right track to flourish in the dynamic worldwide tourism industry. The emphasis placed on supporting small businesses by the government will ensure that Greece remains one of the most sought-after holiday spots for tourists while also facilitating economic development.