Rhodes Mayor Rejects ETAD’s Beach Exploitation Terms
Rhodes, May 5 – Mayor Alexandros Koliadis of Rhodes has taken a firm stand against the Public Property Company (ETAD), refusing to sign a new programmatic agreement for the exploitation of the island’s beaches. The mayor’s decision comes after six months of negotiations, during which ETAD reportedly demanded price increases of 50% to 60% per square meter for beach concessions.
The previous three-year agreement with ETAD expired in March, and since then, the municipal authority has been in discussions to establish new terms. Mayor Koliadis has consistently stated that any new agreement must include conditions more beneficial to the municipality and, by extension, to the users of the beaches.
Unacceptable Price Hikes and Unresolved Issues
According to sources, Mayor Koliadis recently sent a letter to ETAD, informing them that he would not sign the new agreement under the proposed terms. The mayor highlighted several outstanding issues between the two parties. Specifically, he expressed difficulty in understanding ETAD’s demand for the municipality to complete a protocol for receiving public beaches, citing the long time elapsed since ETAD received the handover protocol and the lack of a proper inspection or handover protocol when the previous agreement commenced in May 2023.
“It is impossible to respond to your absurd demand,” the mayor stated, referring to ETAD’s request for the municipality to confirm the presence or absence of defects, illegal constructions, or legal issues on the beaches. He further questioned the methodology used by ETAD to calculate the “unrealistic concession prices” for simple use rights, stating that despite their efforts and goodwill, they cannot confirm the validity of these calculations.
Demands for Fairer Terms and Local Benefit
The municipality of Rhodes has put forward several key demands during the negotiations to ensure a fairer deal. These include:
- A request for the municipality to receive 20% of the revenue from both auctioned leases and direct leases with adjacent businesses.
- The allocation of a section of Tsambika beach to meet the needs of the local population, ensuring free access and use for the island’s residents.
- The conduct and completion of tenders by the Municipality of Rhodes.
- ETAD to bear the cost of lifeguard coverage for the beaches it leases.
Mayor Koliadis emphasized that these are crucial issues for the smooth operation of the coastal areas. “Due to these major issues, which are essential for us for the smooth operation of the coastal areas, we believe that, at least with the current data, our cooperation is impossible,” he concluded in his letter.
Impact on Tourism and Local Economy
The mayor and his associates believe that the proposed price increases would have a significant negative impact on Rhodes’ tourism product, as they would likely be passed on to beachgoers through higher prices for sunbeds and other services. This concern underscores the municipality’s commitment to protecting the interests of both residents and tourists.
As electronic auctions for beach concessions are anticipated, the ongoing dispute highlights the challenges in balancing commercial interests with the public good and sustainable tourism development.
