Phāea South Crete project enters the public consultation phase

The project, developed by Myrina Village Single-Member S.A., a wholly owned subsidiary of Phaea S.A. (owned by the Sbokos and Vasilakis families), is planned for a site of approximately 155 stremmas (15.5 hectares) in the Skouros area of the Municipality of Viannos, near Kastri and Keratokampos in southern Crete.

With an investment budget exceeding €75 million, the project has been classified as a Category 1 Strategic Investment under Law 4864/2021, pursuant to a decision of the Interministerial Committee for Strategic Investments issued in September 2025.

In March 2026, the project was granted a package of development incentives, including planning incentives through the ESCHASE framework, fast-track licensing procedures, rights to use the seashore and beach, and authorization to implement supporting and ancillary infrastructure.

According to the SEIA, the project involves the development of a high-end integrated tourism resort comprising a five-star hotel with approximately 140 rooms and a maximum capacity of 370 beds, as well as 30 furnished tourist residences with a total capacity of up to 208 beds.

The resort will also feature reception and dining facilities, a multi-purpose hall, a communal swimming pool, a wellness and fitness centre, two beachfront restaurants—one of which may operate a beach bar—a floating platform, and a pier.

The development will further incorporate sports, cultural and gastronomic activities, environmental experiences, and a multifunctional farm, with the objective of linking tourism operations to local agricultural production while extending the tourist season.

Lower Development Density than the Maximum Permitted

A key feature of the planning proposal is the adoption of more conservative development parameters than those permitted under the legal framework governing strategic investments.

For the Tourism and Recreation Zone, covering approximately 151.8 stremmas (15.18 hectares), a floor area ratio (FAR) of 0.12 is proposed, compared with the maximum allowable FAR of 0.20. As a result, the maximum gross floor area will be limited to approximately 18,325 square metres, with a site coverage ratio of 20%.

The SEIA evaluates four alternative development scenarios:

• the zero-development option;
• development under the existing out-of-plan planning regime;
• development under the maximum building parameters permitted by the ESCHASE framework; and
• development under the ESCHASE framework with reduced building density.

The fourth option is identified as the preferred alternative. According to the assessment, the proposed FAR of 0.12 is 40% lower than the maximum permitted under ESCHASE and substantially reduces the total built area compared with both the maximum potential of 31,038 square metres and the existing planning regime, under which development could exceed 26,000 square metres with a capacity of up to 1,133 beds.

Building height will generally be limited to 7.5 metres and two storeys. However, exceptions of up to 9 metres will be permitted on sloping sections of the site in order to minimize excavation and earthworks. Subject to specific conditions, a third storey and a maximum height of 10.5 metres will also be permitted for buildings located more than 50 metres from the shoreline.

Hotel buildings will be set back at least 50 metres from the shoreline, while residential buildings and furnished tourist residences will maintain a minimum setback of 30 metres.

Desalination and Private Wastewater Treatment

The resort’s water supply is planned to be secured through a desalination plant, as full operation of the development is expected to significantly increase water demand, particularly during the summer season.

Brine produced by the desalination process will be discharged through a subsea pipeline equipped with a diffusion system at an appropriate depth. Before the final alignment of the underwater infrastructure is determined, a survey of the seabed will be conducted to verify the potential presence of Posidonia oceanica seagrass meadows.

As no municipal sewerage network exists in the area, the project also includes a private wastewater treatment plant. The facility will provide tertiary treatment, allowing treated wastewater to be reused for irrigating the landscaped areas of the resort.

The project further incorporates renewable energy systems, bioclimatic design principles, natural ventilation and daylighting, energy-efficient air-conditioning systems, LED lighting, and a central building management system.

Additional environmental measures include flood protection works, minimizing impermeable surfaces, preserving mature trees, enhancing landscaping, and implementing source separation of waste streams, including paper, glass, plastics, metals, biowaste, and green waste.

Environmental Assessment

The SEIA concludes that the project is expected to generate positive strategic impacts on tourism development, the regional economy, employment, and the area’s cultural environment.

The anticipated adverse impacts are considered primarily local rather than strategic in nature and relate mainly to increased consumption of water and energy, pressures on soil resources, potential effects on water quality, and additional traffic on the local road network.

Particular emphasis is placed on the management of construction waste, fire protection, safeguarding the marine environment, and maintaining the site’s green balance.

The resort will be required to implement an environmental monitoring programme, focusing on key performance indicators such as energy consumption, water resources, and waste generation. The monitoring results will be compiled into an annual report to be published on the investment company’s website.

Phaea already holds internationally recognised environmental and energy management certifications, including ISO 14001, ISO 50001, and ISO 21401 for the sustainable operation of tourist accommodation. The new resort is also expected to obtain equivalent certifications over the long term.

The publication of the SEIA formally initiates the environmental consultation process. The final environmental protection requirements and monitoring framework will be incorporated into the Presidential Decree approving the ESCHASE, while the individual components of the project will require separate Environmental Impact Assessments (EIAs) before building permits can be issued.