Good Practice - Project
CAP aid in Greece constructs new rural tourism services to create employment
CAP co-finance through LEADER helps a young Greek entrepreneur realise her business ambitions in rural tourism.
General information
RDP Priority
- P6. Social inclusion and local development
RDP Focus Area
- 6B: Local development
RDP Measure
- M19: LEADER/CLLD
Beneficiary type
- Small-Micro Enterprise
Summary
Economic returns on investment from every euro spent on rural tourism by public and private funds can be substantial, e.g., between EUR 1.5 and EUR 4 in overall economic output, depending on factors such as location and existing infrastructure.
In Greece, EU support from LEADER rural development funds has been provided to support new rural tourism businesses, emphasising local community-led projects that are sensitive to the unique regional assets.
Christodoulou Gerasimena was under 30 years old when she applied for this LEADER support to help create full-time employment for herself by achieving her tourism ambitions to develop a successful rural hospitality business venture for budget travellers and families
Located in Kryoneri Galata on the Greek west coast, this LEADER project built three residential spaces, complete with all supporting features, facilities, fittings, and site aesthetics, including autonomous sewage treatment, furniture, kitchen equipment, bed linen, a courtyard, pergolas, barbecue areas, parking and a website.
Results
The LEADER project helped:
- Launch a successful new rural business for a young female entrepreneur.
- Construct and fit out three new tourism residences providing 18 new bed spaces for the LAG area.
- Increase visitor traffic in the area by about 600 overnight stays in the first year.
- 25% savings in the use of resources from solar water heaters, heat pumps, thermal insulation and pergola sunshades.
- Networking and cooperation with other local services to create economic synergies for the local community and retain or circulate income within the rural economy.
Promoter
Christodoulou Gerasimena
Funding
Total project cost: 275 171 (EUR)
EAFRD: 160 975 (EUR)
National/Regional: 17 886 (EUR)
Private/own: 96 310 (EUR)
Ressourcen
Links
Context
Rural tourism continues to expand as a significant sector within the broader framework of EU economic development, particularly for regions rich in natural beauty and cultural heritage.
Multiplier effects generated by initial spending on rural tourism investments can lead to additional economic activity across various sectors, including hospitality, agriculture and other services. Increased visitor numbers can thus translate into higher revenues for local enterprises, aiding job creation and enhancing livelihoods for residents. Economic returns on investment from every euro spent on rural tourism by public and private funds can be substantial, e.g. between EUR 1.5 and EUR 4 in overall economic output, depending on factors like location and existing infrastructure.
In Greece, EU support from the LEADER rural development funds has been provided to support new rural tourism businesses, emphasising local community-led projects that are sensitive to the unique regional assets. By providing financial support and technical assistance, LEADER enables emerging tourism enterprises to use their local natural resources and heritage to improve competitiveness in an increasingly globalised market. Importantly, LEADER support also aims to ensure that tourism development aligns with the local population's aspirations.
Christodoulou Gerasimena was under 30 years old when she applied for LEADER funds to help develop her tourism ambitions into a successful rural hospitality business venture. She chose a location from her home area on the west coast of Greece, which offered good access to the sea, mountains, nature, archaeology, traditional local food services and numerous tourism opportunities.
Objectives
Christodoulou created her tourism company with business development goals focused on job creation and environmental sustainability.
LEADER would support these objectives by providing funds to help cover investment costs involved in constructing new modern tourist accommodation designed to add aesthetic value.
Her LEADER project would provide high-quality visitor services (including online) that reflected and respected the local community’s natural environment.
Sustainability featured strongly in Christodoulou’s business planning, which proved effective in optimising renewable solar power and water efficiency.
The project target groups would be families and younger generations seeking budget services. Marketing would highlight hospitality for mountaineers.
In this case, LEADER would also act as a multiplier of good practice and help reinforce the LAG region’s visibility as an attractive place to live, work and visit.
Activities
Project actions covered a development plot of about 1.6 hectares and actions involved:
- Designing a project plan that secures construction permissions.
- Building three residential spaces with all supporting features, facilities and site aesthetics, e.g. autonomous sewage treatment, furniture, kitchen equipment, bed linen, courtyard, pergolas, barbecue places and parking.
- Achieving business certification according to the ISO 9000 system.
- Creating and running online advertising systems, including a website with booking and other customer service tools.
Main results
- The LEADER project helped set up a new rural business for a woman under the age of 30.
- Three residences were established, providing 18 new bed spaces for the LAG area.
- The company's certification, combined with its increased visibility, resulted in approximately 600 additional overnight stays in the area within the first year.
- 25% savings in the use of resources (compared to other options for the project’s development) from Christodoulou’s decision to use solar water heaters, heat pumps, thermal insulation and pergola sunshades.
- Networking and cooperation between other local service providers help create economic synergies for the local community and retain or circulate income within the rural economy.
Key lessons
- By facilitating financial support and promoting community involvement, the LEADER model represents a robust framework for nurturing innovative rural tourism ventures that can make a notable difference in revitalising Greek rural areas.
- Young and aspiring tourism entrepreneurs should conduct thorough market research to identify unique selling points within the local context, analyse existing tourism trends, understand target demographics and assess competitor offerings. Additionally, they should recognise gaps in the market and tailor new services to meet specific consumer needs.
- Community engagement and cooperation among local stakeholders (e.g., residents, artisans, and farmers) can enhance authenticity and promote cultural heritage. These partnerships enrich the tourist experience and ensure that economic benefits are distributed within the community, thereby boosting local support.
- Prioritising environmentally sustainable practices is increasingly key in today’s ecologically conscious marketplace. Young entrepreneurs should apply eco-friendly principles and promote responsible tourism practices that minimise environmental impact while maximising visitor satisfaction.
Christodoulou Gerasimena