Crete Island in Southern Greece is poised for a major transformation as infrastructure projects and new investments worth about €4.5 billion (USD5.5 billion) begin to reshape the island’s future. These projects should boost connectivity, energy capacity and long-term tourism growth.
Highlights and details were provided earlier this week at a conference shared by Greece’s Minister of National Economy and Finance, Kyriakos Pierrakakis. The latter highlighted the strategic importance of these developments as it would create strong momentum for both the local economy and the tourism industry.
Major upgrades to transport and energy networks
A number of large-scale initiatives are already in progress, aimed at modernizing Crete’s infrastructure and supporting its role as a leading Mediterranean destination.
Central to these plans is the Northern Road Axis of Crete (BOAK), a long-awaited highway project that will significantly improve travel across the island. By linking key cities and resort areas more efficiently, it is expected to make multi-destination travel easier and enhance the overall visitor experience.
Another cornerstone project is the electrical interconnection between Attica and Crete. This will strengthen the island’s energy security, while reducing dependence on outdated and costly local power generation.
New development for Heraklion airport site once the new airport opened
Air connectivity is also set for a major upgrade with the construction of a new international airport in Kastelli. The green airfield should replace Heraklion airport latest by 2028, providing the necessary capacity to match continued growth in air passengers’ flows.
Last year, Heraklion airport passed for the first time the 10-million passengers mark, up by 6.9% to reach a total of 10.03 million travelers.
Plans are also advancing for the redevelopment of the current Heraklion International Airport once operations transfer to Kastelli. The 200-hectare site is then expected to become a major mixed-use development area.
Pierrakakis compared the vision to a smaller version of the Ellinikon airport project in Athens, which transforms the Greek capital’s former airport into a large coastal hub. The aim is to achieve a similar level of quality and scale, but with a faster and more streamlined process.
Initial studies have already been completed, with the next phase focusing on detailed planning and investment strategy in partnership with Growthfund.
Crete’s economic contribution continues to expand alongside these developments. The island accounts for around 5% of Greece’s GDP and about 20% of its tourism activity. Tourism revenues have risen sharply, from €1.4 billion in 2019 to roughly €2.4 billion today.