Greece faces increasing competition from other Mediterranean destinations - such as Turkey and Tunisia - that offer a similar mix of sun, sea, and ancient sites. Government policy for the tourist sector is aimed at upgrading facilities to levels prevailing in Spain and Italy, and providing incentives for hoteliers to develop year-round tourism based on a variety of activities -- sports and health , international conferences, and cultural and special interest tourism .

Attracting private investors from abroad is crucial to upgrading Greece's tourist industry. The government plans to achieve this by offering assets controlled by the Hellenic Tourist Organisation ( EOT ) for development by private investors on leases of at least 40 years. About 300 of EOT's assets - mainly coastal sites and other sites estimated to be worth $10bn - have been transferred to EOT Estate Development Corporation, a holding company .

EOT operates only about 50 facilities. These include some properties in the Xenia hotel chain, marinas , campsites , ski resorts , and buildings in traditional styles that have been converted into small hotels. The remaining 250 facilities are operated by private Greek companies or, in some cases, local municipalities, under leasing or concession agreements. These include hotels, restaurants, commercial properties, and spa facilities.

EOT Estate Development plans to group 49% of its assets in a series of real estate investment trusts, which would be floated on the Athens Stock Exchange to raise capital for development. It is poised to appoint an international adviser to help identify projects, operate tenders and select private investors. The projects would be developed on a leasehold or concession basis, or as joint ventures with Estate Development. Priority will be given to projects that help to diversify Greece's tourist product, provide new jobs in significant numbers, and ensure protection of the environment. 

One attraction for international investors is that EOT's properties include sizeable areas of land in prime urban and coastal areas, with infrastructure already in place. In the first phase, Estate Development plans to promote at least one sports tourism centre, several spas focusing on health and fitness, and a theme park in the Athens area based on Greek mythology. All three projects would be completed in time for the Athens Olympic Games in 2004.