Greece Launches its New Transport Equivalent Scheme, Offering Nearly Twenty-Two Million in Compensation for Island Travel and Freight Costs, Supporting More than One Lakh Passengers

Published on December 23, 2025

The Ministry of Maritime Affairs and Insular Policy of Greece has reported that, until the end of October 2025, a total of 22.1 million euros has beenfunded to 127,000 island passengers and 1,800 firms under the Transport Equivalent Scheme. The Transport Equivalent Scheme is designed to compensate for the higher transport costs incurred by residents and firms operating in the island regions, thus directly contributing to the economic stability of the region.

Financial Support for Island Passengers and Businesses

The most recent payment cycle covers travel and transport activities between October 1 and December 31, 2024. 12.27 million euros were paid to 126,984 eligible passengers, providing compensation for ferry and air travel expenses. This support helps mitigate the financial burden of travel to and from the islands, particularly during the busy holiday season.

Additionally, 9.89 million euros were allocated to 1,788 businesses operating in island regions to cover eligible freight transport costs for goods transport that occurred between July 1 and December 31, 2022. These businesses, operating in island areas with populations over 3,500, have benefited from these funds to sustain their operations amidst high logistical costs. Smaller islands, with populations of up to 3,500, were fully compensated in previous rounds, which took place in December 2024 and May 2025.

Scheme Aims to Mitigate Inequalities and Support Island Growth

The Transport Equivalent scheme is crucial in addressing the inherent inequalities that come with living on islands, such as high transport costs and limited access to essential services. By providing support to both domestic travelers and businesses, the scheme promotes economic equality and ensures that island regions remain accessible and viable for local tourism and commerce. Minister Vassilis Kikilias of the Ministry of Maritime Affairs and Insular Policy emphasized that the initiative is designed to reduce the economic disparity between island and mainland areas, fostering a fairer tourism experience across the country.

Modernization and Future Growth for the Scheme

Looking ahead, Deputy Minister Stefanos Gkikas outlined plans to redesign and modernize the Transport Equivalent scheme to enhance its effectiveness and better serve island communities. This will include streamlining applications and disbursement processes, ensuring quicker and more efficient support. The modernization will likely expand the scope of the scheme to reach more regions and enable the inclusion of smaller islands with fewer resources.

Future Tourism Impact: Enhancing Accessibility and Sustainability

The Transport Equivalent scheme plays a critical role in boosting tourism to Greece’s islands by ensuring that travel to and from these areas is affordable and efficient. As the global demand for sustainable travel increases, the scheme aligns well with broader eco-tourism trends by fostering affordable access to regions that prioritize preservation of their natural landscapes and cultural heritage.

The continued development of island tourism, aided by initiatives like this, is expected to have a positive long-term impact on Greece’s tourism industry. As island destinations become more accessible to both domestic and international travelers, the increased tourism flow will stimulate local economies and provide new employment opportunities in sectors such as hospitality, retail, and transportation. These changes will further drive tourism diversification, creating unique experiences that blend adventure tourism, cultural experiences, and sustainable practices.

Supporting Future Growth of Island and Coastal Tourism

The Tourism Ministry’s focus on island tourism and the creation of more incentives for businesses in these regions will help position Greece as a leader in the growing market for sustainable island tourism. The Transport Equivalent scheme, along with future investment in infrastructure, will enhance Greece’s appeal as a year-round tourist destination, catering to eco-conscious travelers who value both authentic experiences and environmental sustainability.

As the Greek government continues to foster innovation in tourism management and sustainable travel, the Transport Equivalent scheme will play a key role in shaping the future of Greek island tourism, allowing remote regions to attract global visitors while maintaining the unique charm and natural beauty that make them so appealing. By ensuring that transportation remains affordable and efficient, this initiative not only helps maintain tourism numbers but also creates opportunities for long-term, sustainable growth in the sector.

Driving Sustainable Growth for Greece’s Island Tourism

Transport Equivalent is likewise a crucial mechanism for promoting sustainable tourism in Greek islands. By providing economic aid for improved transport networks and infrastructure in island communities, it helps bridge the gaps between mainland and island Greeks and promote economic development and economic equity for Greeks. As tourists continue to flock to Greece for their vacations every year due to increased awareness and positive media coverage about cultural and natural attractions in Greece and as tourists continue to increase as world travel and vacations become even easier and less expensive for tourists worldwide in future years due to advancements in technology and global economic development and progress.