Economic Profile: Municipality of Kalamata Economic Profile: Municipality of Kalamata May 2024 Funded by the European Union a Economic Profile: Municipality of Kalamata Disclaimer This document was produced under the project “Greece Sustainable Cities and Regions through Integrated Territorial Investments Technical Facility” over the period 2022-2024. This project is carried out with funding by the European Commission’s Directorate- General for Regional and Urban Policy (DG REGIO). The views expressed in this document cannot in any event be considered to reflect the official opinion of the European Union. This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the govern- ments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Since the World Bank encourages the dissemination of its knowledge, this document may be reproduced, in whole or in part, for non-commercial purposes, as long as full reference is made to that document. b Economic Profile: Municipality of Kalamata Table of Contents List of Figures, Tables and Boxes..................................................................ii Quick Facts on Region and Municipal Area................................................1 Demographics..................................................................................................3 Human capital/Labor market........................................................................ 3 Educational attainment of workforce.............................................. 4 Labor force and employment............................................................. 5 Unemployment....................................................................................... 6 Structural Composition of the Economy.....................................................8 MSMEs ................................................................................................................... 8 Sectoral analysis ................................................................................................ 9 Economic performance......................................................................11 Private sector investments................................................................14 Research and Innovation ........................................................................... 16 Key research institutions and start-up companies..............................16 Innovative entrepreneurship.......................................................................16 Business and Economic Support Infrastructure....................................... 18 Land & infrastructure......................................................................................19 Construction activity.......................................................................................19 Industrial land, commercial and residential real estate.....................21 Investment incentives and opportunities...............................................21 Municipal investment priorities..................................................................22 Development Opportunities...................................................................... 23 Tourism ...............................................................................................................23 Agri-food and bioeconomy..........................................................................24 Energy .................................................................................................................24 Key Take-aways............................................................................................. 26 Contact Information.................................................................................... 27 i Economic Profile: Municipality of Kalamata List of Figures, Tables and Boxes List of Figures Figure 1: Total population by age and sex (2011)............................................................................................................................................... 3 Figure 2: Potential labor catchment area of Kalamata (~60km radius)...................................................................................................... 4 Figure 3: Education level of active labor force (2011)....................................................................................................................................... 5 Figure 4: Labor force participation rate by sex and age group (%).............................................................................................................. 5 Figure 5: Employment by age and sex................................................................................................................................................................... 6 Figure 6: Registered unemployment by sex (Dec. 2022)................................................................................................................................. 7 Figure 7: Number of salaried employees (by skill level)................................................................................................................................... 7 Figure 8: Employment by sector (2015 and 2020)...........................................................................................................................................10 Figure 9: Top paid sectors by median monthly salary in euros (2022)......................................................................................................11 Figure 10: Gross Value Added (GVA) of the total economy (regional level, in millions USD, 2000-2019).....................................12 Figure 11: Total firm turnover by sector (in millions EUR, 2015-2020)......................................................................................................13 Figure 12: Average turnover per firm (in thousands EUR, 2015-2020) ....................................................................................................14 Figure 13: Top export industries (regional level, 2021)...................................................................................................................................14 Figure 14: Top export destinations (regional level, 2021)..............................................................................................................................15 Figure 15: Number of licenses granted for legal construction activity (2015-2022)............................................................................20 Figure 16: Licenses granted for new shops and shop improvements by category use (2015-2022)............................................20 Figure 17: New shop and shop improvements by use category (volume, m3, 2015-2022)...............................................................20 List of Tables Table 1: Population change by municipality, Messinia regional unit.......................................................................................................... 3 Table 2: Potential labor catchment area of Kalamata....................................................................................................................................... 4 Table 3: Sectoral distribution of registered companies (2015-2020)........................................................................................................... 9 Table 4: Enterprise count and total employment by firm size.....................................................................................................................10 Table 5: Significant companies in Kalamata.......................................................................................................................................................11 Table 6: External trade (Region of Peloponnese, 2017-2021)......................................................................................................................14 Table 7: Major development areas co-funded by the EU over 2014-2020 programming period...................................................22 List of Boxes Box 1: Natural resources revenue management...............................................................................................................................................17 ii Economic Profile: Municipality of Kalamata Kalamata Quick Facts on Region and Municipal Area Kalamata is the capital and central port inhabitants per km2. While Kalamata is cational contributions, tourism, and its of Messinia, located seaside along the the biggest city in terms of population, location along major road networks. Messinian Gulf and stretches along the Tripoli is the capital of the Region where coastline at the foot of Mount Kalathi the regional administration is located. Kalamata embodies the contempo- of the Taygetos Mountains. Kalamata A number of ancient Greek as well as rary urban identity of the region of is about 3 hours from Athens and the medieval sites of Byzantine, Venetian, Messinia, with a rich history. The his- same distance from Patras by car. The Frankish, and Turkish origins are found torical city center is characterized by morphology of the broader region is nearby. It offers opportunities for hiking, the Church of Holy Apostles, a 14th cen- characterized by mountains, which ac- mountaineering (Taygetos), picturesque tury Byzantine monument. The Castle of count for half of the Peloponnese area.1 villages and historical monasteries sit- Kalamata stands upon a hill in the north- The region, which possesses 5 UNESCO uated in the mountain ranges. The city west of city, where an ancient acropolis World Heritage sites, is one of the least is a development pole of interregional once existed. The castle’s foundation, densely populated in Greece with 37.2 importance owing to cultural and edu- which dates back to Byzantine period, 1 Enterprise Greece, 2019. Region of Peloponnese Investment Profile. https://www.enterprisegreece.gov.gr/images/public/Peloponnese-Laconia-profile.pdf 1 Economic Profile: Municipality of Kalamata was reconstructed during Frankish oc- the parallel investments in airport con- Kalamata is renowned for its production cupation, and underwent subsequent nectivity and road connection between of Kalamata olives and olive oil, pro- additions and conversions by the these destinations and the municipali- duced in the nearby villages of Taygetos, Venetians and Ottomans.2 In 1950, a ty.3 The extension of existing hotel com- of PDO designation in recognition of small theatre was built at the southern plexes is expected to further boost local their quality and nutritional value. The end of the castle, which during the sum- employment and tourism dynamics, cultivation of Kalamata olives accounts mer months, hosts dance, music and for which Kalamata is well-positioned, for 75 percent of the region’s agri-food theatre performances. having many schools and higher educa- production. Other agricultural products tional institutions geared towards and from the area include cheese (sfela), rai- Like many other Greek cities, tourism is in active collaboration with top hotels sins, cereal, wine, figs, herbs, tomatoes, a significant contributor to Kalamata’s in the area. The Municipality also plays potatoes, chestnuts, watermelons, ap- economy. While the city itself is less fre- a broader role in reviving the small ples, and cotton, among others. quented compared to other Greek des- Taygetos mountain communities, in tinations, the urban economy is special- particular in spurring tourism and local The city has a demonstrated commit- ized in services which include tourism. economic development to the nearby ment to sustainability, having under- In recent years, there has been signifi- villages. taken a number of initiatives in recent cant development in the luxury tourism years. In the coming years, areas of fo- sector in the broader area, with invest- Agriculture is another significant con- cus and potential future growth for the ments expected to reach €2.5 billion for tributor to local economy, registering city include tourism to the surrounding the Costa Navarino development. The the largest share of enterprises and area, agri-food and bioeconomy and re- municipality is expected to significantly representing the 3rd largest sector newable energy. benefit from the tourism boost, given of employment in the Municipality.4 2 Greek National Tourism Organisation, 2024. Kalamata. https://www.visitgreece.gr/mainland/peloponnese/kalamata/ 3 The €252 million expansion of the road linking Kalamata to the picturesque seaside village of Methoni via Rizomylos and Pylos is the biggest of three major infrastructure projects to the area, among which are also the upgrade of Kalamata airport and the construction of the biogas facility in Kalamata. 4 As of 2020, agriculture, forestry and fishing accounted for 44.6% of registered enterprises and 13.4% of employment in the Municipalty of Kalamata. 2 Economic Profile: Municipality of Kalamata Demographics The overall resident population of the regional unit of Messinia is 146,080, Table 1: Population change by municipality, Messinia regional unit out of which the Municipality of Municipality 2011 2021 % change Kalamata has a population of 72,906 Kalamata 69,849 72,906 4.4% (Table 1).5 Since 2011, regional popu- lation has declined by 8.7%, while the Dytiki Mani 6,945 5,875 -15.4% municipality population grew by 4.4%. Messini 23,482 19,170 -18.4% Kalamata is the only municipality within Oichalia 11,228 8,504 -24.3% the regional unit which experienced an Pylos - Nestor 21,077 17,194 -18.4% increase in population size over 2011 to 2021, while the population of all other Trifylia 27,373 22,431 -18.1% municipalities in the Messinia regional Regional total 159,954 146,080 -8.7% unit decreased. This likely reflects the Source: Population data from Census results of Population and Housing ELSTAT 2011 role of Kalamata municipality as a larg- and 2021. er regional urban center, as observed in other demographically declining ar- eas in Europe. The accelerated rate of Figure 1: Total population by age and sex (2011) shrinkage in rural areas compared to 80+ urban areas leads to a greater rate of ur- banization in regional units even if the 70-79 overall population is declining. 60-69 50-59 Human capital/Labor 40-49 market 30-39 Kalamata is a medium sized city, with 5 20-29 municipalities within a driving distance 10-19 of less than one hour. Considering the 0-9 economically active population of these -9 -7 -5 -3 -1 1 3 5 7 9 municipalities, the number of individu- als within its potential labor catchment Male (%) Female (%) area of Kalamata reaches approximately 64,347 individuals (Table 2).6 Source: Population data from Census results of Population and Housing ELSTAT 2011. 5 Census results of Population and Housing ELSTAT 2021, available at https://elstat-outsourcers.statistics.gr/census_results_2022_en.pdf 6 ELSTAT 2011 data. 3 Economic Profile: Municipality of Kalamata Figure 2: Potential labor catchment area of Kalamata (~60km radius) Educational attainment of workforce Educational attainment among the working population is moderate. Vocational education (high school and educational degrees) comprises 10% of the final education attainment among Kalamata’s labor force, while another 14.5% have completed higher profes- sional school and post-secondary edu- cation degrees. University or equivalent degrees account for the educational attainment of 13.6% of the active pop- ulation, and another 1.1% have com- pleted post-graduate studies (includ- ing PhD level). Census data also reveals disparities in educational attainment rates: among the active population, 60% of the Municipality’s workforce has completed secondary school or less, of which 15% have completed prima- ry school or less. Figure 3 presents the educational attainment of Kalamata’s labor force as of 2011. Table 2: Potential labor catchment area of Kalamata Educational opportunities in Kalamata. Kalamata hosts 3 schools of the Distance Active University of Peloponnese, namely the from Commute Total population Municipality Kalamata time population (2021 census) School of Agriculture and Food, the School of Management, and the School Kalamata     72,906 29,749 of Humanities and Cultural Studies.7 Messini 12 km 20 min 19,170 8,397 Several technical, vocational education- Oichalia 35 km 30 min 8,504 3,632 al training institutes and lifelong learn- Pylos-Nestorios 49 km 1 hr 17,194 7,925 ing organizations activate in Kalamata, such as I.E.K Orizon Kalamatas, IEK DELTA West Mani 42 km 1 hr 5,875 2,439 360° Kalamata, IEK DYPA Kalamata, EPAS Trifyllia 74 km 1 hr 22,431 12,205 Kalamatas school, Areadne Lifelong Total     146,080 64,347 Learning Centre, among others.8 9 10 Besides traditional schools, the local Source: Distances / commuting time estimates based on Google Maps; population data from Census results of Population and Housing ELSTAT 2021. Social Youth Development organization, 7 Kalamata hosts the School of Agriculture and Food (Department of Agricultural Technology and Department of Food Science and Technol- ogy); the School of Humanities and Cultural Studies (Departments of Philology; the Department of History; and Archaeology and Cultural Resources Management); and the School of Management (Department of Accounting and Finance and Department of Business and Organi- zation Administration). 8 IEK Orizon Kalamatas specializes in tourism and pedagogy offers degrees and continuing education courses in culinary arts, tourism studies, childcare assistance, spa therapy, among others. 9 Areadne offers certificated in computer applications, hospitality studies, and beauty therapy. 10 EPAS Kalamatas school offers the following specializations: General nursery assistant, pharmacy assistant, Cooking arts, Intelligent elec- tronic devices and installation technician, Electrical and elevator technician, and Administrative and financial services officer. 4 Economic Profile: Municipality of Kalamata K.A.NE, has established a local network of Labor force and employment differ significantly between males and companies, institutions and public bod- Labor force participation. Kalamata has females, with a rate of 78.3% among ies that are offering quality placements a labor force participation rate of 67.9% males compared to 57.7% among fe- to vocational students.11 12 among adults between the ages of 25 males. Labor force participation is con- and 64. Labor force participation rates siderably lower among individuals prior Figure 3: Education level of active labor force (2011) Postgraduate degree (including PhD) University degree, technical universities and equivalent Higher professional school and post-secondary education Vocational education training Upper secondary school (6 years) Lower secondary school (3 years) Primary school or less 0 1,000 2,000 3,000 4,000 5,000 Male Female Source: Authors’ elaboration. Data received from Census results of Population and Housing ELSTAT 2011. Note: Vocational training includes both high school certificates and vocational education degrees. University degree or equivalent includes technical universities and equivalent schools. Figure 4: Labor force participation rate by sex and age group (%) 70-74 65-69 60-64 55-59 50-54 45-49 40-44 35-39 30-34 25-29 20-24 15-19 0 10 20 30 40 50 60 70 80 90 100 Male (%) Female (%) Source: Authors’ elaboration. Data received from Census results of ELSTAT 2011. Note: The labor force participation rate is calculated as the economically active population divided by the total working-age population. 11 Fields include hotels and tourism, restaurant and gastronomy, graphic design, social enterprises, cultural organizations/non-profit associ- ations, Agribusiness and Agritourism, food and beverage, and construction industry. All receiving companies are situated within the city of Kalamata or nearby. 12 KANE, 2024. What is K.A.NE. https://ngokane.org/en/what-is-k-a-ne/ 5 Economic Profile: Municipality of Kalamata to the age 24 (Figure 4). At regional lev- nificantly higher numbers than men wholesale trade; accommodation; land el, the labor force participation rate of across all categories, despite their lower transport and transport via pipelines; Messinia reaches 68.3%.13 rate of labor force participation (Figure food and beverage activities; public 6). As of 2022, the region of Peloponnese administration; and food manufactur- Employment rate of active labor force. had an unemployment rate of 12.6%, ing. The total number of new jobs also The Municipality had an approximate slightly above the national average of increased over 2015-2022, though it employment rate of 80.5% among its 12.5%.16 17 peaked in 2019 and declined markedly total active labor force, with males be- in 2020. Medium skilled jobs constitut- ing employed in noticeably higher As of 2022, approximately 85% the ed the majority of new jobs (66%), fol- numbers than females across all age workforce in the regional unit is occu- lowed by high skilled jobs (22%) and groups.14 After the age of 50, female pied in medium and high-skilled jobs low skilled jobs (12%). Figure 7 presents labor force participation drops, signifi- (68% in medium-skilled jobs and 17% the number of salaried employees by cantly, but those who remain are em- of salaried employees in high-skilled skill level over 2019 to 2022. ployed at a rate of 90%. Most of the em- jobs, respectively), while approximate- ployed workforce is between the ages ly 15% of job positions are low-skilled. of 35-44. Hiring increased across all skill levels over 2015-2022, with a pronounced Unemployment concentration in high skilled jobs, which As of December 2022, the total num- represented 60% of all hirings over the ber of unemployed persons in the period. Medium skilled jobs represent- Municipality of Kalamata was 8,894 ed 22% of hirings while low skilled jobs persons.15 Across all age categories, represented 12% of hirings. Hirings in women tend to be unemployed in sig- high skill sectors were predominantly in Figure 5: Employment by age and sex Employment among active population Composition of employed population by age 60-64 65 and over 55-59 50-54 55-64 45-49 45-54 40-44 35-39 35-49 30-34 25-29 25-34 20-24 15-24 15-19 0 20 40 60 80 100 0 5 10 15 Male (%) Female (%) Male (%) Female (%) Source: Authors’ elaboration. Data received from Census results of Population and Housing ELSTAT 2011. 13 Figures for female labor force participation given as aggregate for women above the age of 64, thus, there is no precise estimation of the actual labor force participation rate among women until the age of 64. 14 ELSTAT 2021. 15 Source: DYPA (mdaae.gr). 16 ELSTAT- Greece in Figures January - March 2021. 17 ELSTAT, 2023. Greece in figures - October - December 2023. https://www.statistics.gr/documents/20181/18074233/GreeceinFigures_2023Q4_EN.pdf/1e72c05a-0802-1b9d-aca0-dbcb5be5d355 6 Economic Profile: Municipality of Kalamata Figure 6: Registered unemployment by sex (Dec. 2022) 2,000 1,504 1,500 1,328 1,153 1,000 901 799 762 713 664 500 361 404 141 164 0 15-24 25-34 35-44 45-54 55-64 65+ Male Female Source: Authors’ elaboration. Data from DYPA (mdaae.gr). Figure 7: Number of salaried employees (by skill level) 2022 2021 2020 2019 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 Low Medium High Source: Data from DYPA (mdaae.gr), as of December 2022. Note: Figure includes both full time and part time employment. Low/medium/high skill levels are categorized in accordance with the official classification given by the ILO’s International Standard Classification of Occupations (ISCO-08). 7 Economic Profile: Municipality of Kalamata Structural Composition of the Economy Number of registered companies. (4%). All other sectors constitute less MSMEs As of 2020, there were 11,436 regis- than 4% each of registered enterprises. tered enterprises in the Municipality of Taken together, micro and small-to Kalamata. The number of registered en- The number of registered enterprises -medium sized enterprises (MSMEs) terprises generally increased over 2015 increased in just a few sectors over accounted for at least 91% of total to 2020. The number of registered en- 2015 to 2020.18 Over the period, there registered enterprises in Municipality terprises increased over 2015 to 2018, has been growth in the number of reg- of Kalamata as of 2020 (Table 3). 19No peaking at 11,716 firms, and declined istered enterprises in the sectors of ag- large enterprises were recorded over slightly thereafter. riculture, forestry and fisheries; supply the 2015 to 2020 period, and MSMEs of electricity, natural gas, steam and represented the entirety of reported Business density. With approximately air conditioning; real estate manage- turnovers over the period. Micro-sized 157 registered enterprises per 1,000 in- ment; and water supply; wastewater enterprises alone comprised 89% of all habitants, the business density per pop- treatment, waste management and re- registered enterprises, 64% of employ- ulation of Kalamata is nearly three times mediation activities. All other sectors ment and 56% of total firm turnovers greater than the European average of experienced decline in the number of in the Municipality in 2020. Meanwhile, 53.3 companies per 1.000 inhabitants. registered enterprises, with most sig- small to medium-sized enterprises com- This high figure is largely due to the sig- nificant decreases being recorded in prised 2% of registered enterprises, 24% nificant number of micro-sized business wholesale and retail trade (10% decline, of employment, and 23% of total firm present. decrease of 188 firms); construction (9% turnovers.20 decline, de decrease of 45 firms); profes- Sectoral distribution of registered sional, scientific and technical activities Firm size dynamics. Over 2015 to 2020, companies. As of 2020, the sectors with (3% decline, decrease of 38 firms). Table micro-sized and small-medium enter- the significant shares of registered en- 3 presents the sectoral distribution prises increased in terms of enterprise terprises in the Municipality of Kalamata of registered companies over 2015 to count. However, micro-sized enterprises were agriculture, forestry and fisheries 2020. decreased in terms of employment and (44.6%); wholesale trade (14.2%%); pro- turnovers, by 9% and 7% respective- fessional, scientific and technical activ- ly since 2015. Small to medium-sized ities (9.4%); accommodation and food enterprises increased substantially in service activities (6%); and construction terms of both employment and turn- 18 The number of registered enterprises declined in wholesale and retail trade (total decrease of 434 enterprises, from 3695 to 3261), con- struction (1053 to 880 enterprises), professional, scientific and technical activities (2838 to 2691 enterprises), education (412 to 352 enter- prises), accommodation and food service (552 to 492 enterprises), transportation and storage (9%), financial and insurance activities (8.4%), information and communication (7.7%). 19 Statistical Register of Businesses. No large enterprises were recorded during 2015 to 2020. However, 4% of enterprises are categorized as being of indeterminate size. 20 A remainder of firms are of indeterminate size, comprising 9% of registered firms and 11% of employment (and 0% of recorded turnovers). 8 Economic Profile: Municipality of Kalamata Table 3: Sectoral distribution of registered companies (2015-2020) Share of Share of registered registered 2015- enterprises enterprises 2020 Sector 2015 2016 2017 2018 2019 2020 (2015) (2020) change Agriculture, forestry and fisheries 4,004 4,703 4,972 5,393 5,260 5,100 37.8% 44.6% 27% Wholesale and retail trade 1,810 1,714 1,708 1,612 1,647 1,622 17.1% 14.2% -10% Professional, scientific and 1,117 1,087 1,059 1,038 1,068 1,079 10.5% 9.4% -3% technical activities   Accommodation and food service 702 668 701 694 728 681 6.6% 6.0% -3% Construction   503 458 464 445 463 458 4.7% 4.0% -9% Human health and social care   422 430 435 431 440 445 4.0% 3.9% 5% Transportation and storage   418 433 443 434 448 445 3.9% 3.9% 6% Manufacturing 434 381 397 400 410 408 4.1% 3.6% -6% Other service activities   368 333 356 362 365 346 3.5% 3.0% -6% Education   209 197 198 199 212 216 2.0% 1.9% 3% Arts, entertainment and recreation   159 148 147 158 157 151 1.5% 1.3% -5% Financial and insurance activities   134 126 127 128 127 126 1.3% 1.1% -6% Administrative and support 118 103 111 114 118 116 1.1% 1.0% -2% activities   Information and communication   104 95 92 88 92 101 1.0% 0.9% -3% Supply of electricity, natural gas, 33 33 38 37 43 55 0.3% 0.5% 67% steam and air conditioning   Real estate management   36 35 31 29 41 47 0.3% 0.4% 31% Water; wastewater; waste 17 16 20 19 20 21 0.2% 0.2% 24% management and remediation Unknown activity 10 5 139 131 69 14 0.1% 0.1% 40% Public administration 5 5 4 4 4 5 0.0% 0.0% 0% Mining and quarrying 0 0 0 0 0 0 0.0% 0.0% Total 10,603 10,970 11,442 11,716 11,712 11,436 8% Source: Authors’ elaboration. Data received from the Statistical Register of Businesses. over (78% increase and 49% increase, vice activities (20.3%); wholesale and re- Employment dynamics. Accommo- respectively). Medium-sized enterprises tail trade (20.2%); agriculture, forestry and dation and food service activities and sustained greater losses in 2020 relative fisheries (14.5%), and education (14.2%).21 wholesale and retail trade experienced to micro enterprises across the mea- The next most significant sector is profes- the greatest growth in employment sures of registered enterprises, employ- sional, scientific and technical activities over the period. Employment in accom- ment and turnover. (6.3%), followed by activities related to modation and food services activities human health and social care (4.1%) and grew by 47% over the period, increasing Sectoral analysis transport (4.0%). Both construction and its share of employment from 13.3% to manufacturing each comprise 3.5% of 20.9%. Employment in wholesale and Employment by sector. As of 2020, employment. All other sectors combined retail trade increased by 36% over the over 70% of all employment in the account for less than 10% of employment. period, increasing its share of employ- Municipality was concentrated in four Figure 8 presents the number of persons ment from 14.3% to 20.1%. Employment sectors: accommodation and food ser- employed by sector in 2015 and 2020. in manufacturing more than doubled 21 Statistical Register of Businesses. 9 Economic Profile: Municipality of Kalamata Table 4: Enterprise count and total employment by firm size ployed, with the most affected sectors being activities related to human health Firm size 2015 2016 2017 2018 2019 2020 and social care; agriculture, forestry and Enterprise Count fisheries; education; construction; pro- Large 0 0 0 0 0 0 fessional, technical and scientific activ- ities; and transportation and storage. It Small to medium 131 198 157 245 250 234 is estimated that some of the resident Micro 9,384 10,396 9,001 9,542 9,199 10,020 population also works in mining and Uncategorized 457 106 420 1775 2023 997 quarrying in the nearby municipality of Number of persons employed Megalapoli.22 23 Large 0 0 0 0 0 0 Small to medium 3,016 4,494 4,010 5,540 5,860 5,216 Top paid sectors. The top paid sectors by median monthly wage over as of Micro 14,669 17,387 13,990 13,615 13,400 13,739 2022 included manufacturing (tobacco Uncategorized 4,408 410 3,928 2,731 2,706 2,398 and textiles), financial service activities, Source: Authors’ elaboration. Data received from the Statistical Register of Businesses. scientific and professional activities (research and development, engineer- over 2015-2019 in terms of persons declined sharply in 2020 to 738 persons ing, cultural and information services, employed, increasing its share in em- employed. All other sectors experienced among others (Figure 9). ployment from 5% to 9%. However, it a decline in the number of persons em- Figure 8: Employment by sector (2015 and 2020) Accommodation and food services activities Wholesale and retail trade Agriculture, forestry and sheries Education Professional, scienti c and technical activities Human health and social care Transportation and storage Construction Manufacturing Administrative and support activities Other service activities Arts, entertainment and recreation Information and communication Financial and insurance activities Electricity, natural gas, steam and air conditioning 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2015 2020 Source: Authors’ elaboration. Data received from the Statistical Register of Businesses. 22 Lignitiki-Megalopolis SA in Megalapoli (a subsidiary of Public Power Corporation), operates the lignite power plants in Megalopoli and owns the exploration and exploitation rights for lignite mining, directly employs 970 persons (2020 Q1), with a further 350 jobs in local con- tractors whose activities are almost exclusively undertaken for Lignitiki-Megalopolis. The company estimates that around 60% of its employ- ees live in Megalopoli, with many of the remainder commuting from towns elsewhere in the region (mostly Tripoli & Kalamata). 23 European Commissin, 2022. Initiative for Coal Regions in Transition: Megalapoli Regional Profile. https://energy.ec.europa.eu/system/files/2022-02/Megalopoli%20START%20Regional%20Profile.pdf 10 Economic Profile: Municipality of Kalamata Figure 9: Top paid sectors by median monthly salary in euros (2022) Manufacture of tobacco products 2,094 Financial service activities, except insurance and pension funding 1,915 Manufacture of textiles 1,279 Scienti c research and development 1,228 Civil engineering 1,210 Air transport 1,180 O ce administrative, o ce support and other business support 1,098 Water collection, treatment and supply 1,092 Education 1,078 Manufacture of machinery and equipment n.e.c. 1,077 Manufacture of motor vehicles, trailers and semi-trailers 1,056 Creative, arts and entertainment activities 1,050 Crop and animal production, hunting and related service activities 1,035 Public administration and defense; compulsory social security 1,016 Employment activities 1,000 €0 € 1,000 € 2,000 € 3,000 Source: MDAAE ERGANI. Note: Manufacture of fabricated metal products excludes machinery and equipment. Salaries increased by an average of 5% several of Kalamata’s top companies, Economic performance over 2020 to 2023.24 Salaries generally spanning agriculture and food manu- GDP. As of 2021, the regions of Laconia increased most in fields of civil engi- facturing, accommodation and food and Messinia (NUTS 3 unit) had a GDP neering, activities related to financial services, wholesale and retail trade, and per capita of €14.700.26 27 The real GDP of services, food and beverage services, healthcare. the greater Peloponnese region rose by sewerage and waste collection, con- struction, manufacturing (tobacco products, metal products, electrical Table 5: Significant companies in Kalamata equipment, motor vehicles, machinery Area of Activity Companies and equipment), employment activities, Agriculture and food Agrovim S.A., Karelia Tobacco Company (leaf sports and recreation activities, and ICT- manufacturing tobacco), Papadimitrioy Quality Foods Ltd related activities (information service Accommodation and Grand Hotel Kalamata Luxury Living Hotel activities, computer programming, food services Management LLC Healthcare Nephroxenia Dialysis Center, Diagnostic Laboratory Key companies and products. Kalamata Panagiotis Falirea EE is home to some of the strongest per- Wholesale and retail Kava Koulieris LCC (beverages, soft drinks and beer), forming companies in the region, some trade Calin Limited Commercial and Import Company for of which also have significant inter- Clothing national presence.25 Table 5 presents Source: MDAEE ERGANI. 24 MDAAE ERGANI data. 25 Karelia Tobacco company attained revenues of €1.27 billion in 2023, ranking among the largest companies in Greece. 26 In 2021, the GDP per capita of the Peloponnese region was €17.500 while the national average was €20.700. 27 No official data could be found on GDP and GDP per capita for the Municipality off Kalamata. 11 Economic Profile: Municipality of Kalamata 3.2% in 2021-2022 and reached a GDP In 2019 and 2020, it dropped by €78.5 enced growth, namely: transportation per capita of €21.000 as of 2022 (com- million and €74.6 million, respectively. and storage, information and commu- pared to national average of €23.800 nication services, administrative and and EU average of €35.400).28 29 Total turnover by sector. Over 2015- support services, and agriculture. Figure 2020, wholesale and retail trade31 com- 11 presents the sectoral composition of Gross value added. The gross value add- prised 59.3% of all total reported turn- total turnovers over 2015-2020. ed of Messinia and Laconia ranks slightly overs, followed by accommodation and below the national average of regional food services (8.5%), manufacturing Firm-level turnovers. On a per-firm units in Greece.30 The gross value added (8.3%), transport and storage (6.4%), basis, at the high end of the spectrum, of the region unit increased over 2000 to technical, professional and scientific wholesale and retail trade contributed 2007 and peaked at €5.5 billion in 2007. activities (3.8%), construction (3.4%), the greatest amount of turnover per As of 2019, the region had a GVA of €4.6 agriculture, forestry and fisheries (2.9%). enterprise over 2015-2020. Agriculture billion, that of million in 2000. Figure 10 Over 2015-2019, significant growth had the lowest average turnover on a presents the GVA of the regional unit in total reported turnover occurred in per firm basis and declined by 9% since over 2000 to 2019. wholesale and retail trade, manufactur- 2015. ing, accommodation and food services. Total reported firm turnover. While Other service activities, construction; Firm-level turnover has increased in total firm turnovers in the Municipality and arts, entertainment and recreation- manufacturing; wholesale and re- generally grew over 2015 to 2020, (from al activities also experienced moderate tail trade; professional, scientific and €521 million to €715 million), turnover growth over 2019-2020. While nearly all technical activities; information and growth only occurred over 2015 to 2018. sectors experienced decline in revenue communications; and constructions. Turnover peaked at €869 million in 2018. over 2019-2020, some sectors experi- Average turnover per firm in manufac- turing had increased by 4 times over 2015 to 2019, though it declined sharp- Figure 10: Gross Value Added (GVA) of the total economy (regional level, ly in 2020. Professional, scientific and in millions USD, 2000-2019) technical activities increased by 50%. Turnover per firm in administrative and 7,000 support activities and arts, entertain- 6,000 ment and recreation both increased by 5,000 33% over the period (notwithstanding a decline of 20% in the latter in 2020, 4,000 presumably due to COVID-19). Average 3,000 firm turnover in education, transporta- tion, and accommodation and food ser- 2,000 vices also increased modestly (by 9%, 1,000 7%, and 5% respectively). Decreases 0 in some sectors a per firm basis were 2000 2003 2006 2009 2012 2015 2018 observed in some sectors, such as agri- culture and energy and utilities-related Greece average Laconia, Messinia activities on, but this could potentially be attributed to the significant growth Source: OECD Cities and Regions. https://regions-cities-atlas.oecd.org/TL3/x/x/REGION_ in the number of firms which outpaced ECONOM-GVA_IND_TOTAL-REAL_PPP/2019. the growth of turnover. Note: Total economy Million USD (Expressed in Million USD constant prices constant PPPs, 2015 reference year). 28 Eurostat. (indicator: nama_10r_2gdp). 29 GDP PPS per inhabitant. 30 OECD Cities and Regions. https://regions-cities-atlas.oecd.org/TL3/x/x/REGION_ECONOM-GVA_IND_TOTAL-REAL_PPP/2019 31 Wholesale and retail trade includes the repair of vehicles and motorcycles. 12 Economic Profile: Municipality of Kalamata Figure 11: Total firm turnover by sector (in millions EUR, 2015-2020)32 € 1,000 € 900 € 800 € 700 € 600 € 500 € 400 € 300 € 200 € 100 €0 2015 2016 2017 2018 2019 2020 Wholesale and retail trade Accommodation and food service activities Transportation and storage Manufacturing Professional, scienti c and technical activities Construction Agriculture, forestry and sheries Human health and social care Information and communications Other Source: Authors’ elaboration. Data received from the Statistical Register of Businesses. Note: All other sectors account for 5.0% of total firm turnovers: Administrative and support activities; Arts, entertainment and recreation; Education, Electricity, gas, steam and air conditioning, Financial and insurance activities, Information and communication, other service activities; Public administration and defense; compulsory social security, Unknown activity; and Water supply; wastewater treatment, waste management and remediation activities. Note: Turnover data unavailable for the following: real estate management (2018, 2019, 2020), Electricity, natural gas, steam and air conditioning (all years except 2020), Water; wastewater, waste management (2016, 2018, 2019, 2020), Public administration and defense; compulsory social security (all years), Financial and insurance activities (2016). COVID-19 impact. COVID-19 had a no- forestry and fisheries (€3.2 million, 18% growth of imports outpaces that of ex- ticeable impact on firm performance, as increase), administrative and support ports (Table 6). total firm turnovers decreased by €74.6 activities (€2.4 million, 57% increase), million, or 9%, from 2019 to 2020. The and information and communication Export performance by sector and sectors with strongest decline in firm activities (€1.2 million, 23% increase).32 destination. Petroleum products com- turnover in 2020 were manufacturing prise 83.4% of the region’s exports as (€73.7 million decline, 72% drop from Export volumes. Exports of the Region of 2021. Other significant export indus- 2019), accommodation and food ser- of Peloponnese have been steadily in- tries include food (9.2%) and drinks and vice activities (€24.4 million decline in creased since 2017 and reached €5.38 tobacco (3.3%). Nearly half of all exports turnover, 34% from 2019), construction billion in 2021.33 Export performance in are towards Libya, Türkiye, Saudi Arabia, (€3.1 million, 12%), and wholesale and terms of contribution of exports to GDP Lebanon, and the US. While no official retail trade (€1.8 million decline, 0.4% is below the national average (63.7% vs. data could be found for exports at mu- decline). At the same time, certain sec- 21.7%). The value of exports increased nicipal level, local companies are noted tors experienced growth, as turnovers by 25% over 2015-2021, while imports for exports of raisins, olives and olive oil. grew in transport and storage (€22.7 increased by 37%. While the region million, 107% increase), agriculture, has a negative trade balance, and the 32 2020 data unavailable for the following sectors: public administration and defense; compulsory social security; and supply of electricity, natural gas, steam and air conditioning. 33 IIES – Institute for Export and Research Studies, SEBE – Association of Exporters. Mapping of Greece’s Export Activity by Region. Period 2017-2021. 13 Economic Profile: Municipality of Kalamata Figure 12: Average turnover per firm (in thousands EUR, 2015-2020) Wholesale and retail trade 247.66 Manufacturing 145.43 Water, wastewater, waste management 134.44 Transportation ans storage 101.19 Real estate management 92.38 Accommodation and food services 84.03 Information and communication 79.15 Administrative and support activities 65.97 Construction 51.97 Electricity, natural gas, steam and air conditioning 47.92 Health and social care 43.01 Financial and insurance activities 33.90 Arts, entertainment and recreation 29.98 Professional, scienti c and technical activities 24.26 Education 19.06 Other service activities 14.67 Agriculture, forestry and sheries 4.41 €0 € 50 € 100 € 150 € 200 € 250 € 300 Source: Authors’ elaboration. Data received from the Statistical Register of Businesses. Note: All Turnover data unavailable for the following: real estate management (2018, 2019, 2020), Electricity, natural gas, steam and air conditioning (all years except 2020), Water; wastewater, waste management (2016, 2018, 2019, 2020), Public administration and defense; compulsory social security (all years), Financial and insurance activities (2016). Table 6: External trade (Region of Peloponnese, 2017-2021) Figure 13: Top export industries (regional level, 2021) (amounts in € millions) 2021 2020 2019 2018 2017 4.1% 3.3% Exports 5,383.30 2,994.20 4,518.00 5,243.60 4,309.10 Imports 6,430.80 3,766.90 5,598.30 6,054.00 4,711.10 9.2% Trade Balance -1,047.50 -772.70 -1,080.30 -810.40 -402.00 Exports/Imports 83.7% 79.5% 80.7% 86.6% 91.5% Source: SEBE-Greek International Business Association, IEES, and Export Credit Greece. 83.4% Private sector investments years. The broader area is experiencing While limited consolidated data exists an influx of both domestic and foreign on investments in and around Kalamata, prospective buyers of luxury real estate, Petroleum products anecdotal evidence suggests ongoing with private equity firms also entering Food private sector investment in the luxury the space. Costa Navarino develop- Drinks and tobacco real estate segment and in agricultural ment is expected to reach €1.2 billion Others production (particularly, olives and ol- in investments, with premium luxury ive oil). hotel brands opening locations in the Source: SEBE-Greek International area (e.g., Marriott International hotel Business Association -IES- Institute of Export Research and Studies, and Export Real estate has been a key target of group, Mandarin Oriental, Westin). In Credit Greece. https://ecg.gr/en/greece- private sector investments in recent 2020, Mubadala Investment Company, map/ 14 Economic Profile: Municipality of Kalamata Figure 14: Top export destinations (regional level, 2021) the investment vehicle of the govern- ment of Abu Dhabi in collaboration with Libia 17.6 Temes of the Konstantakopoulos Group, Türkiye 11.7 through a subsidiary called Eagle Hills, it was decided a joint investment of Saudi Arabia 8.1 €500 million euros for the construc- Lebanon 6.2 tion of a complex of hotel units, golf United States 5.5 courses, houses in Messinia, covering China 5.0 an area of 1,800 acres).34 The space has Singapore 4.7 also become among the investment target of Sheikh Tahnoun bin Zayed Al Gibraltar 4.1 Nahyan (ADQ and International Holding South Korea 3.4 Company / IHC), who has invested in Iraq 3.1 real estate for tourism.35 0% 5% 10% 15% 20% The agricultural sector has also re- ceived foreign direct investment. Source: SEBE-Greek International Business Association -IES- Institute of Export Research and Studies, and Export Credit Greece. https://ecg.gr/en/greece-map/ Foreign investors have also privately invested in olive groves in the area, as well as olive oil standardization units. In 2020, Kalamata also received an inward capital investment of $60.5 million for the manufacturing of medical cannabis by Somai Pharmaceuticals, which creat- ed 85 jobs.36 34 Monterock International, 2022. Large Business Mission from the UAE Today in Athens. https://www.monterock.com/large-business-mission-from-the-uae-today-in-athens/ 35 Monterock International, 2022. Large Business Mission from the UAE Today in Athens. 36 fDi Markets, from the Financial Times Ltd 2023. 15 Economic Profile: Municipality of Kalamata Research and Innovation The Peloponnese region is a moder- ate innovator according to the EU’s Regional Innovation Scoreboard with an innovation performance that has increased significantly over time (30.8%).37 It scores slightly above the EU average in non-R&D expenditure and below the EU average for R&D expendi- ture by the public and private sector.38 Performance of product innovators, business process innovations, and col- laboration between SMEs are all well above that of the EU average, though the region lags in its employment in knowl- edge-intensive activities, and trademark and patient applications.39 Key research institutions and start-up companies Kalamata has a modest presence in research, innovation, and entrepre- neurship at both national and EU lev- el. Significant institutions within the city are the University of Peloponnese and its relevant departments, and the Balkan Institute of Entrepreneurship (BALKIEN). The Balkan Institute of Entrepreneurship (BALKIEN), founded in 2016, aims to conduct research and contribute to the economic develop- 37 European Commission Directorate-General for Research and Innovation, 2023. Regional Innovation Scoreboard 2023: Regional profiles Greece. https://ec.europa.eu/assets/rtd/ris/2023/ec_rtd_ris-regional-profiles-greece.pdf 38 European Commission, 2019. 39 European Commission Directorate-General for Research and Innovation, 2023. Regional Innovation Scoreboard 2023: Regional profiles Greece. 16 Economic Profile: Municipality of Kalamata ment of the Balkan countries by foster- collaboration with the National Center other degree offerings, the Department ing innovation and entrepreneurship. In for Scientific Research “Demokritos” of Agriculture also offers a master’s de- recent years, it has participated in proj- and the National Observatory of gree in business administration in agri- ects for entrepreneurship in the creative Athens.41 The Department also hous- food sector (MBA).42 sector and sustainable farming, among es the Laboratory of Archaeometry, others.40 which activates at regional (Prefecture Innovative of Peloponnese) and national level with entrepreneurship In the pursuit of research, the depart- academic, research institutions, the ments of the University of Peloponnese Ministry of Culture, and in collaboration As of January 2024, Kalamata had one are also incorporating and advancing with EU organizations through a num- startup listed in Start-up Greece in the the use of digital tools and applica- ber of research projects. The Lab has 8 field of data analytics (Box 1).43 44 Other tions in their respective fields. The projects funded by European & National startups in the Peloponnese region are Department of History, Archaeology Grants, more than 80 publications in active in data and analytics, renewable and Cultural Resources Management peer-reviewed journals and conference energy and energy AI monitoring sys- offers a unique interdisciplinary mas- proceedings, and 16 doctoral candi- tems, and HealthTech.45 ters’ program in Cultural Heritage dates. The departments also connect to Materials & Technologies (CultTech), in the local economic reality. Amongst its Box 1: Natural resources revenue management Systematic Logical Operations Advisers - SLOA LTD is a start-up management consulting and software development firm based in Kalamata. The firm operates mostly in Greece, Cyprus, Norway, and the U.K., sup- porting technology, development, and investment projects. The firm focuses on New Technology Opportunities, Corporate Strategy, Company Development, Reengineering and Growth, Big Data Analytics, Management Information Systems, Data Mining, and Research. SLOA has undertaken significant projects related to Artificial Intelligence and Big Data Analytics, Strategy Planning and Reorganization of Organizations and Enterprises, Business Process Outsourcing, and participating in projects and working groups as contractor, expert, evalu- ator, or auditor of relevant subjects. Its products and solutions find application in digital health, digital tourism, retail, sustainable mobility, and more. One example is that of Easyride, a new platform which assists bicy- cle-riders in choosing routes based on a series of quality characteristics, such as difficulty due to inclination, road surface, temperature, noise, quality of urban space, etc., for an optimal user experience. 40 For example, it has participated in the project “ArtCRelief - Entrepreneurial Empowerment for artists, cultural and creative professionals”, “RELIEF - euRopean bio-Economy aLliancE in Farming”, and “AGRETAIN - REgenerative susTainable food chAINs through mArket Gardening.” 41 http://culttech.uop.gr/ 42 https://mba.agrifood.uop.gr/ 43 Elevate Greece, 2023. Registered Startup database. https://elevategreece.gov.gr/startup-database-dashboard/ 44 Elevate Greece, 2023. Registered Startup database: Sloa Limited. https://registry.elevategreece.gov.gr/company/sloa-limited/ 45 As of March 2024, six startups from the Region of Peloponnese were listed in the database of Startup Greece. 17 Economic Profile: Municipality of Kalamata Business and Economic Support Infrastructure Kalamata has longstanding business Oil & Table Olive Festival, an institution provides a number of education re- support structures for traditional that has been established as the most sources and runs the entrepreneurship sectors, with some developments in important annual olive oil forum in Incubator “Messinian Business Routes”, the support of its entrepreneurship Greece.48 It is also a participant to the which is the first entrepreneurship sup- ecosystem. Relevant business support SUSTAINOLIVE project, involving 22 port structure in Messinia.49 institutions include the Chamber of partners from six Mediterranean coun- Commerce of Kalamata, the Agricultural tries, which aims to promote sustain- House by Phaos. House by Phaos is a Cooperative of Kalamata, and the Union able farming practices to address a host co-working space which houses busi- of Agricultural Cooperatives of Messinia. of challenges to the industry. nesses and creative professionals, pro- viding registered office or branch, space The Agricultural Cooperative of With headquarters in Kalamata, the for seminars, events and exhibitions, as Kalamata, established in 1963, is the Messinia Chamber of Commerce and well as secretarial support. It consists principal olive-growing primary coop- Industry comprises over 12,000 busi- of 190m2 workspaces, a multipurpose erative with one of the first olive-grow- nesses in the Prefecture of Messinia. event venue with a capacity of 90 peo- ing units in Messinia. With a decided The Chamber provides data and key ple, and shared spaces. It is oriented focus on small family agricultural units, services, promotes training and em- towards young professionals, self-em- the cooperative has 300 members and ployment programs and information. ployed persons, startups, overseas com- offers various support activities to its in- It is a key partner in the organization of panies, cultural associations, and digital dependent small producers who deliver the annual Peloponnese “Peloponnisos nomads (Work from Kalamata), among part of their harvest from the surplus Expo”, alongside the Chambers of others. they keep for their families.46 Such sup- Argolis, Arcadia, Achaia, Ilia, Corinthia, port activities include developing an Laconia. The Chamber also provides ‘Faris’ Kalamata Municipality Bene- integrated management system, train- business support services through its ficiary Organisation is an umbrella ing in new cultivation techniques, im- non-profit arm, ET.A.P. PELOPONNIS & organization for efforts to develop a proving cultivation, harvesting, delivery IONIAN ISLANDS, with the aim of sup- high-quality cultural policy in the city, and storage conditions, creation and porting the entrepreneurship and ex- which succeeded the Kalamata Munic- improvement of virgin olive oil analysis troversion through the interconnection ipal Organization  for Cultural Devel- laboratories, and more.47 The coopera- of the businesses of the Peloponnese opment (DEPAK) established in 1985.50 tive hosts the annual Panhellenic Olive and Western Greece. The organization Its establishment marked the beginning 46 Agricultural Cooperative of Kalamata, 2024. Sustainolive program. www.kalamata-olive.gr 47 Agricultural Cooperative of Kalamata, 2024. OEF Producers Organization. www.kalamata-olive.gr 48 Council of Europe, 2023. 9th Panhellenic Olive Oil & Table Olive Festival. https://olivetreeroute.gr/post-2023-en-10/ 49 ET.A.P. PELOPONNIS & IONIAN ISLANDS, 2024. Roads of Entrepreneurship: Messinian Business Routes. https://etappeloponnisos.gr/dromoi-epicheirimatikotitas/ 50 Municipality of Kalamata. Cultural Agencies – Exhibitions. Kalamata Municipal Organization for Cultural Development. https://www.kalamata.gr/oldsite/images/guidekal/en/show_sub2728.html?id=16 18 Economic Profile: Municipality of Kalamata of a dynamic period of a broad interven- Rail and bus services. While the city Kalamata airport and four investment tion program by the municipality to pro- is connected to rail via the Corinth– groups have submitted binding finan- mote the development of the city’s cul- Kalamata railway, passenger and freight cial offers for the 40-year concession tural life.51 The organization promotes services have been suspended since of Kalamata airport by the end of June the cultural development in Kalamata 2011. Kalamata has bus services to 2024.56 The next closest international and the broader region by the creation Athens, Thessaloniki and Patras, as well airport is Araxos Airport (GPA) locat- the necessary infrastructure and pro- as a direct bus to Athens Airport. ed in Patras, on the north end of the motion of artistic activities. It has estab- Peloponnese peninsula. The distance lished three departments: music (which Port infrastructure. Kalamata Port is from Kalamata Airport to Araxos Airport houses the Municipal Conservatory and primarily used for cargo (particularly oil is approximately 180 km/111 mi. numbers over 10,000 graduates), dance products).53 There are no regular ferry (organizes the yearly Kalamata Interna- services into Kalamata. The port oper- Since 1976, a Hellenic Air Force mili- tional Dance Festival), and a school of ates only in summer and serves ferries tary base and air-training department visual arts. to Kythira and Crete. operates west of the airport runway, using the same runway as the civil- Land & infrastructure Air connections. Kalamata is served ian airport. In 2021, an agreement was by the International Airport “Captain reached between the governments of Road infrastructure. Kalamata is locat- Vassilis Constantakopoulos”, located Greece and Israel for the development ed about 2.5 hours from Athens (via A7 11 kilometers from the city center. The of an international flight center for the and Olympia Odos A8), and 3 hours from airport serves both domestic and in- Hellenic Air Force worth nearly €1.37 Patras (214km, via E55/EO9 or 285km via ternational flights with charter flights billion, which includes procurement A7 and Olympia Odos A8). Kalamata is also as the main source of flights, with al- and operation of new training planes connected to the Sparta-Kalamata high- most all flights being seasonal during M-346, among other provisions.57 Un- way (National Road 82), a scenic moun- the summer. During summer months, der this Government-to-Government tain road which joins the regional units the airport connects Kalamata to 30 agreement, Elbit Systems has begun to of Laconia and Messinia in the southern European destinations.54 Only Olympic provide flight simulators, training air- Peloponnese. Development projects are Air operates year-round with flights to craft, maintenance, and support over a underway to improve Kalamata’s connec- Thessaloniki and there are sometimes period of 22 years.58 tion to the north and the southwestern occasional flights to Athens. Flight vol- cities of the Peloponnese. The upgrade umes to Kalamata have been increasing Construction activity of the southern section of the A5 (Patras– in recent years: it was estimated that Pyrgos–Kalamata) will eventually extend 349,146 passengers used Kalamata Private construction constituted 99% to Tsakona near Kalamata. Meanwhile, Airport in 2022, representing an in- of all licenses granted for construction the connection and upgrade of the 49km crease of 98.57% compared to 2021 activity over 2015-2022. The yearly road axis between Kalamata, Rizomilos, (175,833).55 Development plans for the number of construction permits nearly Pylos and Methoni is expected to take airport are underway: in 2020, Greek doubled over 2015 to 2022, notwith- place over the next 30 years, with an es- state’s Superfund (EESYP SA) has ap- standing a pronounced drop in 2019, timated cost of €310 million.52 proved the final plan for the upgrade of after which it rose again thereafter. In 51 Municipality of Kalamata. 52 In March 2023, a public-private partnership agreement was reached between the Ministry of Infrastructure and Transport and the SPV of the private partner Aktor Concessions-Intrakat for the design, financing, construction, upgrade and maintenance of the road linking Kalama- ta, Rizomilos, Pylos and Methoni. The project cost is and expected to be a 30-year project worth €312 million. 53 VesselFinder. https://www.vesselfinder.com/ports/GRKLX001#:~:text=Port%20of%20Kalamata%20is%20located,in%20the%20next%20 30%20days 54 https://www.kardamilivillas.gr/en/kalamata-airport-attracting-tourist-flows-to-the-peloponnese/ 55 https://kalamatainternationalairport.com/statistics/ 56 https://www.ekathimerini.com/economy/1229907/kalamata-airport-sale-plan/ 57 https://greekreporter.com/2022/10/21/greece-israel-open-flight-school/ 58 https://elbitsystems.com/blog/soaring-high-over-kalamata/ 19 Economic Profile: Municipality of Kalamata Figure 15: Number of licenses granted for legal construction activity (2015-2022) 250 204 207 200 149 149 158 158 150 127 127 123 124 130 131 110 111 95 96 100 50 0 2015 2016 2017 2018 2019 2020 2021 2022 Private Total Source: ELSTAT, 2023. Figure 16: Licenses granted for new shops and shop improvements by category use (2015-2022) 25 20 15 10 5 0 2015 2016 2017 2018 2019 2020 2021 2022 O ce Industrial Commercial Educational Healthcare Hotels Other Destination unknown Source: ELSTAT, 2023. Figure 17: New shop and shop improvements by use category (volume, m³, 2015-2022) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 2015 2016 2017 2018 2019 2020 2021 2022 O ce Industrial Commercial Educational Healthcare Hotels Other Destination unknown Source: ELSTAT, 2023. 20 Economic Profile: Municipality of Kalamata terms of built space, private construc- (Meligalas), as well as an Industrial Park commercial property prices being sig- tions represented 98% of total permit- (“VIOPA”). In the Industrial Area (ETVA) nificantly higher in the historical city ted constructions over the period in of Kalamata A (Sperchogeia) and B center and waterfront. Prices can range terms of square meters built.59 (Meligalas) there are organized recep- from 400€ per sq.m. for less central and tion areas for industrial-handicraft en- discounted proprerties to €2,000 to Over 2015-2022, most new licenses for terprises, which concern wholesale ac- €5,000 per sq.m. for newer, central and new shops and shop improvements tivities and professional facilities of low, waterfront properties. Newly built of- were in the commercial category of medium and non-nuisance industry. fices are available for sale at an average use (accounting for 28% of permits price of €2,000 per sq.m. Regarding rent granted over the period), followed by The industrial area has an occupan- rates, observed prices for office spaces industrial (23%), and office (13%). A cy of 70%, and the established com- typically vary between €7-10 per sq.m. significant portion of licenses granted panies within specialize in food and per month. Few co-working spaces over the period were categorized as beverages, wholesale trade of food exist, such as “House by Phaos” which other (25%). Office spaces represented and beverages, construction of refrig- houses businesses and creative profes- half of licenses granted for new shops erators, publications/printing, man- sionals. and shop improvements in 2015, drop- ufacture of wood products, and iron ping to nearly zero over 2015-2020, and constructions. According to ETBA’s of- Residential developments. Kalamata rising to 14% of permits in 2021 and ficial website, there are no land avail- has several high-end residential real 13% in 2022. able in the Industrial Area of Kalamata estate developments both through the A (Sperchogeia). VIOPA spans 52,000 city center, as well as in the city’s periph- In terms of built area, industrial spaces sq.m. and hosts 62 businesses, reach- eries. represented the most common use cat- ing 100% of its occupancy. Companies egory of construction permits for new within VIOPA specialize in the trade Investment incentives shops and shop improvements (30%), sector (28 companies, of which 22 oper- and opportunities followed by commercial spaces (20%) ate in vehicle maintenance and repair), and hotels (19%). manufacture of furniture and manufac- At region level, under the Investment ture of rubber and plastic products (7 Incentives Law 4399/2016, the Region Industrial land, each), transport (5), food and beverage of Peloponnese benefits of investment commercial and industry and metal products manufac- incentives of up to 55% of the total in- residential real estate turing (4 each), publishing / printing (3), vestment cost, according to the area construction sector and manufacture of and the size of the company.62 The Industrial land. Kalamata possesses pulp and paper products (2 each), pro- Law focuses on supporting sustainable significant available industrial space duction of textiles and provision of ser- investment, projects with efficient tax and low demand. The average annual vices (1 each). breaks, favorable loans and state aids percentage demand for industrial land in selected business activities.63 The aid of 0.34%, while the estimated time to Office and commercial space. Accord- schemes of the Investment Incentives depletion of industrial capacity of its ing to available data, Kalamata has Law include: i) tax exemptions; ii)) cash available land 293.2 years.60 61 Industrial a moderate supply of office space to grants; iii) Leasing subsidies iv) wage areas include BI.PE. KALAMATA A accommodate business present. Ob- costs subsidy; v) stable corporate tax (Sperchogeia), BI.P.E. KALAMATAS B served land values vary widely, with rate for 12 years; vi) financing of busi- 59 ELSTAT, 2023. 60 Ministry of Development & Investment (Directorate for Industrial Policy), 2021. Technical Report: Business Parks. Available at: https://www.ggb.gr/sites/default/files/basic-page-files/%CE%A4%CE%95%CE%A7%CE%9D%CE%99%CE%9A%CE%97%20%CE%95%CE%9A %CE%98%CE%95%CE%A3%CE%97_%CE%95%CE%A0_2020.pdf 61 Ministry of Development & Investment (Directorate for Industrial Policy), 2021. Technical Report: Business Parks. 62 Enterprise Greece, 2019. “Region of Peloponnese Investment Profile.“ https://www.enterprisegreece.gov.gr/images/public/Peloponnese-Laconia-profile.pdf 63 Enterprise Greece, 2019. “Region of Peloponnese Investment Profile.“ 21 Economic Profile: Municipality of Kalamata ness risk through loans or equity; vii) Kalamata is a participant to the myriad of abandoned, privately owned, fast track licensing.64 Covenant of Mayors and the EU buildings across the city. They may have Mission for 100 climate-neutral and severe risk of infrastructure damage as Municipal investment smart cities by 2030. In the past five a result of the earthquake in 1986. The priorities years, Kalamata has participated in a issue faced by the municipality is that number of climate-oriented initiatives there is no clear means for the munic- 2014-2020 Investment Priorities. Over and projects, implementing national ipality to intervene in these buildings the 2014-2020 programming period, a and EU projects worth more than €120 and are at imminent risk of collapsing significant portion of EU co-funded proj- million to deal with the effects of cli- and occupying valuable space in the ects in the Municipality were dedicated mate change. downtown areas. The Municipality is to upgrading water supply infrastructure, also in the process of elaborating its urban regeneration (redevelopment of In the context of the city’s new new local development strategy on fish- streets and its historical center), energy Sustainable Urban Development eries for 2021-2027.67 upgrading, and social initiatives. The mu- Strategy over 2021-2027, the munic- nicipality also sought funding to support ipality main focus is on support for local economic development through rehabilitating the waterfront. Areas of the promotion of local trades (for ex- support discussed included PPP initia- ample, the project for the construction tives for maintenance and international of the Fishery & Marine Promotion best practices for planning while lever- Exhibition Center),65 as well as support aging all its current and potential as- to companies continuously affected by sets as well. Investor attraction was also COVID-19 and development of modern discussed. Another area of interest was means of promotion of Kalamata’s cul- the regeneration of abandoned build- tural and tourism resources.66 ings located across the city. There’s a Table 7: Major development areas co-funded by the EU over the 2014-2020 programming period Thematic Objective Budget Contracts Payments Research and Innovation € 1,042,589 € 77,859 € 390,618 Information and Communication € 1,806,898 € 1,806,898 € 474,175 Competitiveness € 22,583,563 € 22,583,563 € 10,516,665 Green economy (Eco-economy) € 1,111,679 € 188,879 € 18,385 Environment € 25,087,151 € 9,651,487 € 4,426,397 Employment € 8,825,471 € 8,495,471 € 4,215,947 Social Inclusion € 3,507,890 € 1,961,534 € 413,668 Education € 595,650 € 595,650 € 17,094 React EU € 552,744 € 552,744 € 180,095 Source: https://anaptyxi.gov.gr/en-us/ 64 Enterprise Greece, 2019. “Region of Peloponnese Investment Profile.“ 65 KEDE, 2021. „Proposal for a Fisheries & Sea Exhibition Center of the Municipality of Kalamata in M. Mantineia.“ https://kede.gr/protasi-gia-ekthesiako-kentro-provolis-alieias-thalassas-dimou-kalamatas-sti-m-mantineia/ 66 Key initiatives to support the urban economy were included over the past programming period to support entrepreneurship, but these funds were redirected to help existing businesses during COVID-19. 67 https://www.anmess.gr/anakoinoseis/diavoulefsi-tou-programmatos-alieiaydatokalliergeia-kai-thallassa-2021-2027-sto-dimo-kalamatas/ 22 Economic Profile: Municipality of Kalamata Development Opportunities This section highlights areas of inter- the city is expected to benefit from of the University of Peloponnese are est in the municipality of Kalamata multiple ongoing investments for the well-connected to the largest hotels in based on their strategic value to the upgrade of infrastructure in the region, the area (Costa Navarino, Elite, Grecotel, city and growth potential. Recent de- including roads and development of Filoxenia, Pharae Palace etc.).70 These velopments in these sectors are de- the airport.68 69 Kalamata stands to reap present major employment opportuni- scribed further below. The city plans to benefits from the increased tourism to ties in the area, as the hotel of the Costa maintain and enhance its level of and the area if it develops its own touristic Navarino complex alone employs over sustainability of tourism, while address- offerings (e.g., its waterfront), maintains 2,100 individuals.71 ing its detrimental effects on local in- strong connections with the circuit of frastructure and upgrading solid waste local attractions in the area, and contin- The Costa Navarino development, management practices. ues to adapt the skills of its local work- which totals investments of €850 mil- force to the needs of the industry. lion and is expected to reach €2.5 bil- Tourism lion, places the region on the map in In recent years, the region has seen an sustainable luxury tourism and is a Tourism presents a increase in real estate development significant catalyst to growth in the mainstay of the local and interest from both domestic and region.72 73 Costa Navarino is the flag- economy and will likely foreign investors. The extension of ex- ship development of TEMES, a leading continue to be a key sector for the city isting hotel complexes is expected to investor, developer and operator in the for years to come. While the region is further boost local employment and high-end tourism and real estate sec- less of a tourist destination compared tourism dynamics, for which Kalamata tor in Greece. The complex comprises to other Greek destinations, significant is well-positioned, having many schools Navarino Dunes, Navarino Bay, Navarino developments in the sustainable luxury and higher educational institutions Waterfront, Navarino Hills, and Navarino segment have helped place the region geared towards and in active collab- Blue. Costa Navarino is marketed as the on the map. With significant tourism oration with top hotels in the area. prime, sustainable destination in the volume directed to the areas around Several vocational schools in Kalamata Mediterranean, offering beach yoga, Kalamata (in particular, Costa Navarino), as well as the School of Management watersports, hiking, biking, kayaking, 68 The €252 million expansion of the road linking Kalamata to the picturesque seaside village of Methoni via Rizomylos and Pylos is the biggest of three major infrastructure projects to the area, among which are also the upgrade of Kalamata airport and the construction of the biogas facility in Kalamata. 69 Kathimerini English Edition, 2022. PM heralds three major infrastructure projects for southwest Peloponnese. https://www.ekathimerini.com/news/1186878/pm-heralds-three-major-infrastructure-projects-for-southwest-peloponnese/ 70 IEK Orizon Kalamatas, 2024. ”Our Philosophy: IEK - KDVM Orizon.“ https://www.iek-orizon.gr/en/school/iiek-orizon 71 https://yougoculture.com/articles-virtual-tour/experience/kalamata 72 The TEMES’ impact on Messinia’s GDP amounts to 11 percent, while direct jobs exceed 2,500. Upon completion of all investments, direct jobs are expected to exceed 6,600 direct and 4,400 indirect (11,000 jobs in total). 73 Greek Travel Pages, 2023. Costa Navarino: Next Investments Focused on Alternative Tourism, Themed Hotels 23 Economic Profile: Municipality of Kalamata tennis, and rock- climbing, as well as four while bed capacity in Messinia grew from terest of the European Union enshrined award-winning golf courses. Navarino 9,440 in 2011 to 10,261 in 2017. in EU strategy.80 The Department of Dunes, opened in 2010, has become a Agricultural Technology of the University key point of attraction and has helped Agri-food and of the Peloponnese, based in Kalamata, promote Greece for the first time as a bioeconomy is responsible for the coordination of the serious golf destination.74 While most international RELIEF project for develop- of the Costa Navarino is located ap- The region boasts a ing curricula in bioeconomy in farming, proximately one hour from Kalamata, strong agricultural and bringing together a collection of HEI, VET the next investment phase concerns gastronomic profile and presents de- providers/farmer consultants, research Navarino Blue, a development 210 hect- velopment opportunities in agri-food institutes, social partners and farming ares in the area of Rizomylos, which is a tourism, agricultural technology and business partners with presence in rural 10-minute drive from Kalamata airport. bioeconomy. The region’s strategic lo- communities and farming.81 cation and agricultural profile make The upgrading of Kalamata’s airport it a desirable destination for olive oil Energy and surrounding roads are also expect- and wine tourism in particular. With ed to improve attractivity and traffic Kalamata olives being world-renowned Kalamata and its broad- to the area, including Kalamata itself. and PDO distinguished, tours of the ar- er region also demon- Kalamata’s airport aims to reach pas- ea’s olive groves provide Kalamata with strate considerable com- senger traffic of 500,000 by 2030.75 The a distinctive advantage in its tourism mitment and potential in renewable increased number of passengers – com- offering. The broader Peloponnese re- energy. The city has undertaken numer- bined with the private investments in the gion produces approximately 31% of ous initiatives including a Sustainable tourism sector and the improvement of wine production in Greece, spans 1208 Urban Mobility Plan, Sustainable Energy road infrastructure in the prefecture – is wine codes and has extensive wine and Climate Action Plans, Electric expected to have a multiplier effect on roads throughout.78 79 The Peloponnese Vehicle Charging Plan and a Local Waste the Prefecture of Messinia as well as the is home to the largest number of Greek Management Plan. Several projects have wider region served by the airport.76 As wine PDOs, boasting seven PDO-level already been implemented, such as solar of 2021, tourism contributed 4% to the appellations, while the Peloponnese energy production installations, geother- regional GDP of Laconia and Messinia, region possesses 17 regional appella- mal energy utilization and the conversion while the region in turn accounted for tions scattered across the whole area, of all streetlights to LEDs. The municipali- 2% of Greece’s tourism revenue.77 Hotel including Tegea, Arcadia, Corinth and ty has recently established its own Energy capacity of the Messinia Prefecture has the Slopes of Petroto. Community, with the goal of increasing increased in recent years, reaching 38.2% renewable energy production and ad- in 2017 compared to 32.4% in 2011. Local institutions within Kalamata are dressing energy poverty. In February The number of overnight stays in 2017 also paving the way forward on the top- 2024, a contract was signed for the im- reached 836,676 against 555,159 in 2011, ic of bioeconomy, a topic of strategic in- plementation of two photovoltaic parks 74 European Golf Design, 2023. Navarino Dunes. https://www.egd.com/?portfolio=navarino-dunes 75 Reuters, 2022. “Greece launches tender to lease regional airport.” https://www.reuters.com/business/aerospace-defense/greece-launches-tender-lease-regional-airport-2022-09-08/ 76 Growthfund, 2022. “Launch of the international concession tender for the development of Kalamata Airport.” https://growthfund.gr/en/ekkinisi-tou-diethnous-diagonismou-gia-tin-aksiopoiisi-tou-aerodromiou-kalamatas-meso-parachorisis/ 77 INSETE Intelligence, 2022. Tourism’s Contribution to the Greek Economy 2020-2021. https://insete.gr/wp-content/uploads/2022/09/2020-2021_EN.pdf 78 Greek Ministry of Agriculture. 79 Metaxas, Theodore and Karagiannis, Dimitris (2015). Peloponnesus: a unique example of unorthodox regional development: Can the gas- tronomic tradition show the right path? MPRA Paper No. 66829, posted 23 Sep 2015. https://mpra.ub.uni-muenchen.de/66829/1/MPRA_paper_66829.pdf 80 European Commission, 2018. „A sustainable bioeconomy for Europe - Strengthening the connection between economy, society and the environment: updated bioeconomy strategy“. DOI: 10.2777/792130. https://op.europa.eu/en/publication-detail/-/publication/edace3e3- e189-11e8-b690-01aa75ed71a1/language-en/format-PDF/source-149755478 81 RELIEF - EuRopean Bio-Economy ALliancE In Farming, 2023. Home. https://relief.uop.gr/ 24 Economic Profile: Municipality of Kalamata to offset the energy costs of its water and wastewater management facilities. Correspondingly, private sector activity in the renewable energy sector has also been gaining traction, helping facili- tate the energy transition of the region. Kalamata-based companies have realized significant renewable energy projects throughout the Peloponnese and con- tinue to drive energy sector transforma- tion across public and private spheres.82 For example, Andrianos provides mod- ern energy solutions across a spectrum of product solutions (solar thermal, LPG – natural gas, heating, cooling, smart home solutions, water savings measures, and more), with large projects realized throughout the region of Messenia and Arcadia. It product solutions have found application in industrial sectors (cement industry, paper recycling, tobacco) as well as tourism and residential sectors, having concluded numerous collabora- tions for the development and upgrade of luxury hotels and residential build- ings. Based in Kalamata, Solarway has realized 400 photovoltaic projects since 2009. Among them are photovoltaics in residences, schools, commercial en- terprises, hotels, olive mills, and more.83 Meanwhile, as part of the activities of the Integrated Waste Management of the Region of Peloponnese, on behalf of Terna Energy, Hitachi Zosen Inova (HZI), a Swiss cleantech company, is building its second biogas plant in the region in Kalamata which will process the biogenic waste of the region and convert the bio- gas generated into renewable electric- ity.84 The region presents considerable renewable energy capacity, particularly in solar and wind energy production.85 82 Andrianos, 2024. Latest news. https://www.andrianos.gr/en/news/latest-news 83 Solarway, 2024. News. https://solarway.gr/en/news/ 84 Bioenergy International, 2024. Hitachi Zosen Inova doubles up with second Kompogas plant in Peloponnese. https://bioenergyinternational.com/hitachi-zosen-inova-doubles-up-with-second-kompogas-plant-in-peloponnese/ 85 Enterprise Greece. Peloponnese Region – Investment Profile. https://www.enterprisegreece.gov.gr/images/public/pdf-files/synergassia/Peloponnisos_investment_profile.pdf 25 Economic Profile: Municipality of Kalamata Key Take-aways Tourism is a significant contributor to Kalamata’s in the municipality over 2015-2020. The cultivation of economy, and significant investments are underway Kalamata olives accounts for 75 percent of the region’s in the luxury tourism segment in the broader area. agri-food production, and food exports comprise 9.2% The accommodation and food services sector account- of the Region of Peloponnese exports as of 2021, after ed for the largest sector in terms of employment (15%) petroleum products. The broader region surrounding and the second largest in terms of turnover (8.5%) in Kalamata boasts a strong agricultural and gastronom- the municipality over 2015 to 2020. It accounted for 6% ic profile and presents development opportunities in of all registered enterprises as of 2020 and increased agri-food tourism, agricultural technology and bioeco- slightly in number over 2015-2019. Total firm turnovers nomy. also increased by 23% over the same period, and aver- age firm turnover in accommodation and food services The city and its broader region demonstrate con- increased by 5%. While the COVID-19 pandemic took siderable commitment and potential in renewable a significant toll on registered enterprises, employ- energy. Correspondingly, private sector activity in ment, and turnovers, the sector has been increasingly the renewable energy sector has also been gaining attracting domestic and foreign investors in more re- traction, helping facilitate the energy transition of cent years, with significant touristic real estate devel- the region. Kalamata-based companies have realized opment in the broader area since 2020. The upgrading significant renewable energy projects throughout of Kalamata’s airport and surrounding roads are also the Peloponnese and continue to drive energy sector expected to improve attractivity and traffic to the area, transformation across public and private spheres. including Kalamata itself. The wholesale retail and trade sector presents the largest share of total turnovers in the municipality, accounting for 60% of total turnovers over 2015- 2020. It accounted for 14.2% of registered enteprises as of 2020. Over 2015 to 2019, the number of persons employed in wholesale and retail trade increased by 36%, increasing its share of employment from 14.3% to 20.1%. The sector also generates the highest amoung of turnover on a per-firm basis, and has steadily in- creased over 2015 to 2019. Agriculture, forestry and fisheries is a small sector in terms of its contribution to total turnovers, but a vibrant part of the local economy. It functions with a large number of very small enterprises (in terms of turnover), accounting for 45% of registered firms. Agriculture is the third-highest sector of employment in the municipality, generating 15% of employment, though it accounted for just 2.9% of total turnovers 26 Economic Profile: Municipality of Kalamata Kalamata Contact Information Municipality of Kalamata xxxx Email: xxx 27 Economic Profile: Municipality of Kalamata Funded by the European Union 28