Greece’s “green” hotels may soon be able to secure more affordable financing than less sustainable hotels, says Alexandros Vassilikos, President of the Hellenic Chamber of Hotels (HCH).
The benefit will be linked to a hotel’s environmental footprint, and is largely dependent upon the passage of the Greek Ministry of Tourism’s draft bill on changes to the country’s tourism sector, being voted on in Greek parliament today,
According to Vassilikos, the draft bill on sustainable hotels outlines a new hotel classification system which will be linked to banking loans and access to funding programs such as NSRF grants.
Hotels: Environmental Footprint vs Stars System
As Mr. Vassilikos explained, a two- or three-star hotel might have a significantly smaller environmental footprint than a four- or five-star hotel. The stars reflect the services provided, whereas environmental performance criteria assess the hotel’s ecological impact.
Thus, a greener hotel may enjoy better financing terms than a less eco-friendly establishment. Hotels scoring high on the new classification system will benefit from favorable financing terms and broader access to funding tools and programs.
The main goal is to separate sustainability-based classification from the traditional star system. This will enable smaller-category hotels (1, 2, and 3 stars), which are often excluded from programs, to access funding opportunities.
The HCH will be responsible for the classification process, issuing certification upon the business’s application, said Vassilikos at a recent event on the topic.
Investment Scoring Criteria
“Banks are required to score investments based on specific criteria. While there’s no official link yet between hotel classification and financing, institutional discussions in this direction are expected soon. Initial reactions have been positive,” said Mr. Vassilikos during a press conference celebrating the HCH’s 90th anniversary. He emphasized that this development would align with principles of reciprocity.
According to the draft bill being discussed in Parliament, primary hotel accommodations and furnished rental rooms/apartments may be classified into environmental performance categories.
The classification process and criteria will be defined jointly by the Ministers of Tourism and Environment and Energy, based on recommendations from the HCH and the Technical Chamber of Greece (TEE).
A Model for Europe?
The legislative initiative aims to serve as a model for the entire European hotel market, according to Vassilikos, and may be coming at the right time as the EU’s new Commissioner of Sustainable Transport and Tourism is from Greece, Apostolos Tzitikostas.
