Peloponnese is the southernmost geographic section of mainland Greece; it features two main connections with the rest of Greece; a natural one at the Isthmus of Corinth and an artificial one in the shape of the Rio‐Antirio suspension bridge that
was constructed in 2004.

Peloponnese covers an area of 21,550 km�.

It is a rugged land with a mountainous interior with Mount Taygetus found at its highest point.

It possesses four south‐pointing peninsulas, Messinia, the Mani Peninsula, Cape Malea (also known as Epidavros Limera), and Argolida to the east. The climate is purely Mediterranean along the coasts

and is therefore ideal for cultivating olives and vineyards. Towards the centre, the climate is continental. This article discusses the Peloponnese hotel market in terms of supply and demand and analyzes past and future tourism trends.

Airport rffic Peloponnese is serviced by two airports: Kalamata International in the southwest and Araxos International in the northwest.

Both airports operate primarily as air force bases but also accept charter flights during the summer months from Europe and the Russian Federation. About 93% of visitors to the Peloponnese by air constitute foreign travellers, primarily from Russia, Germany, and the United Kingdom.

Table 1 summarizes the passenger traffic movements at the airport for the past nine years.



The following comments apply to the previous table:

• Total arrivals grew at a compound annual growth rate of more than 3% during the past nine years, primarily attributed to the dometic segment.
• For 2013, tourism authorities expect a vigorous increase in foreign tourist arrivals by air of nearly 25% as compared to 2012, resulting from new destinations serviced by one of Greece's airlines in Sweden, Ukraine, Israel, Germany, and the Russian Federation. Kalamata airport alone is expected to host over 200 flights during the 2013 tourism season.

Demand for Hotel Accommodation

Demand for transient hotel accommodation for Peloponnese is depicted in the following table, illustrating hotel arrivals and accommodated bednights for the most recently‐reported years.



Demand for hotel accommodation is primarily generated by the domestic market with about 65% of arrivals and 60% of overnight stays.

The peak visitation period occurs from May to September, when the majority of foreigners and about 65% of Greek nationals visit the region. The average length of stay has been about two days for domestic visitors and nearly three days for international visitors.

Supply

The 2012 supply of the hotels, rooms, and beds in Peloponnese is illustrated in the following table. The primary room stock relates to hotels of lower star classification, while five‐star hotels constitute only 2.5% of the total.

The Peloponnesian hotel market represents only 8.5% ot the total Greek room supply, about 6.5% of the total rooms available in Greece, and about 7% of the total Greek bed supply.



Tourism Infrastructure Developments

The most important recent and future tourism infrastructure developments that are anticipated to poteiaese are:

1. The 2010 opening of two Starwood‐branded luxury resort hotels

2. The 2012 opening of an all‐suite luxury Aman Resort in Argolida.

3. The completion of the highway connecting Athens with the western part of Peloponnese (passing through Elefsina‐Korinthos‐Patra‐Pyrgos‐Tsakona) which includes the construction of 284 km of a six‐lane highway and the improvement of another 82 kilometres of existing road network.

4. The completion of the highway connecting Athens with Kalamata (passing through Korinthos and
Tripoli) at a total of 204 kilometres including 24 multi‐level interchanges.

5. The projected improvements at Kalamata International Airport estimated at �25 million.

6. The possible conversion of the military airports in Andravida and Tripoli to commercial ones for the purpose of accepting low‐cost civilian flights as well as cargo flights.

7. The upgrading of the marina in Monemvasia towards the southeast Peloponnese.

8. The budgeted improvements upon existing cultural sites throughout the region estimated at �71 million.

9. The provision of business subsidies throughout Peloponense estimated at �22 million.

10. The development of new branded hotels expected to enter the market in the next 2‐4 years.

Conclusion

The unique natural beauty, ease of access, improving road network infrastructure, and new / upcoming hospitality developments provide every reason to expect that Peloponnese is set to have a promising future.

The cluster of existing and upcoming hotels is anticipated to eventually create a quality tourism destination in its own merit and a unique opportunity for visitors to experience original Greek hospitality in an untouched environment full of culture and scenic landscape.

Recently‐announced state efforts, geared around the extension of the tourism season from the currently‐effective five months to seven months in the short‐term and potentially 12 months, capitalize on the region's agricultural resources (nearly 13% of Greece's agricultural industry is located in Peloponnese) and its connection with tourism to create a unique destination brand.

About HVS
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About the Authors
Nikolas Pavlidis joined HVS in 2012 as a Consulting and Valuation Analyst. He holds a Bachelor of Arts in International Hospitality & Tourism Management from Swiss Alpine Center in Athens, Greece. He can be contacted at npavlidis@hvs.com or +30 (210) 361‐2085.

Themis Trakas is an Associate Director with the HVS Athens Office. He joined HVS in 2006 having ten years of operational experience in the hospitality industry in Greece, Switzerland, and the United States. He holds an MBA in Accounting from Baruch College in New York and a Bachelor of Science in Hotel and Restaurant Administration from Cornell University. Since joining HVS, he has completed numerous feasibility studies, valuations, and market research analyses throughout Greece, Italy and Malta. He can be contacted at ttrakas@hvs.com or +30 (210) 361‐2085.

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