Modernization of Spatial and Urban Planning Legislation - Addition of a New Category of Tourist Accommodation

The bill of the Ministry of Environment and Energy entitled "Modernization of Spatial and Urban Planning Legislation" was approved by a majority by the competent parliamentary committee, which adds to the categories of tourist accommodation the category "Mixed Tourist Accommodation of Small Scale”. Its aim is the simplification and acceleration of the process of preparation, revision and modification of spatial and urban plans of each level, as well as the clarification of the relations between them.

On the tourist furnished residences that are included in the mixed small-scale tourist accommodation of approx. a of par. 2 of article 1 of law 4276/2014:

a. It is allowed to establish divided properties, horizontal and vertical, according to the existing provisions, and

b. the establishment or transfer to third parties of obligations and property rights over them is also allowed.

The percentage of long-term furnished tourist homes that can be sold or rented cannot exceed ten percent (10%) of the total structured area of the small-scale mixed tourist accommodation. The long-term lease is concluded for a period of at least ten (10) years.

Case a) applies only if the following conditions are cumulatively met:

aa. The small-scale mixed tourist accommodation is developed in plots equal to or larger than 50,000 sq.m. and up to 150,000 sq.m.

bb. The hotels included in them are classified in the category of highly upgraded (concern the provision for increased areas of reception and rooms, the existence of a multipurpose room, etc., regardless of the star category of the hotel).

In addition, based on the bill, for the creation of mixed small-scale tourist accommodation, a joint decision is issued by the Ministers of Environment and Energy and Tourism and the competent Minister, as the case may be. This decision determines:

AA. The specific categories of projects, activities and facilities to be erected in the area of the small-scale mixed tourist accommodation.

BB. The general layout of the buildings and facilities with reference to a topographic diagram of scale 1: 5,000. In the general layout care must be taken that the tourist furnished residences are a separate unit from the hotel accommodation.

CC. The environmental conditions of the small-scale mixed tourist accommodation, following the procedure defined in Law 4014/2011 (A '209), as in force.

An important development brought by this bill is that a higher building factor is attributed compared to the case of the individual hotel. More specifically, the maximum building factor for Small Scale Mixed Tourist Accommodations located in off-plan areas is set at 0.2 and is uniform for all facilities (excluding stadiums in Crete, Rhodes, Corfu and Evia with a factor of 0.12).

With the introduction of this new type of accommodation in the regulatory framework, on the one hand, an attempt is being made to attract investment interest, which will be expressed through the multiple economic activities that can be developed in a hotel and at the same time the operation of detached houses for Complex Tourist Accommodations, which by definition are larger scale business plans.