Selling off Greek Islands
In Greece, there have been cries of outrage at the suggestion by some German parliamentarians that they sell off some of the Greek islands. The money raised from the sale, goes the suggestion, would reduce the large economic deficit that the country has. As there are about 6,000 Greek islands and only about 80 are inhabited, there remain a huge number which make no contribution to the Greek economy.
Is this such a bad idea?
There are islands in the Caribbean that have been sold and then developed for tourism. In the Maldives, islands are co-developed for tourism with the locals and the state receiving taxation. And there seems to be a ready market for people to buy islands so here is a slight alteration to the idea. The attraction of the Greek islands for tourists has existed for centuries.
Why shouldn’t the Greek government consider the idea of leasing the islands for say 25 years to hotel groups, tour operators or indeed anyone who will develop the island for its tourism potential? After 25 years the companies leasing the islands can then join in a 50:50 partnership with the state or return the islands to the Greek government. In the meantime it will have made a profit on its investment, the Greek government won’t have to pay for infrastructure costs, jobs will have been created which will help to reduce unemployment and there will have been medical and payroll taxes paid during those years. But the incentive for the companies will be that they pay no other taxation during the life of the lease. For the Greek government it will mean the initial revenue from the leasing of the islands can go straight to reduce the deficit. Think of it like privatising G3 bandwidths for mobile telephones which raised huge sums for governments a decade or so ago.
Now how many islands are there around Ireland and the UK where something similar might be considered?
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would be nice to buy my own greek Island. but would whish to remain part of Greece. There are many as you state but there are few which could be developed for TOURISM per sey. They are simply too small.If it were a viable tourist region or habital from self sufficiency or production they would have been inhabited by the greeks years ago. where profit could be made do you really think the islands would still remain uninhabited.You sugest that the infrastructure would be developed at no cost to the Greek economy but be left to that economy at the end of say 25 years.Do you mean such things as fresh water suplies providing drinking & irrigation to grow crops, perhaps roads on which to drive cars ,transport goods etc, you sugest that no taxes be paid to the Greek economy untill then. I think this totally unrealistic and somewhat misinformed.Yes I would like to buy a Greek Island for my self and go live there, but would expect to pay taxes etc to the Greek economy. Hell I would be living on there soveriegn land.