Economic Profile: Municipality of Heraklion

Investment Rating - The report does not explicitly provide an investment rating for the Municipality of Heraklion Core Insights - The Municipality of Heraklion has experienced significant economic growth, with total firm turnover increasing from €2.38 billion to €4.1 billion between 2015 and 2019, indicating a robust economic performance [12] - Tourism is a key driver of the local economy, contributing approximately 33% to the GDP of the region of Crete, with annual visitor numbers reaching around 1 to 2 million for Heraklion and 5 million for Crete [12] - The region is recognized for its strong human capital, supported by prominent educational institutions and research centers, which enhances its attractiveness for foreign technology companies [12] Quick Facts on Region and Municipal Area - Heraklion is the fourth largest city in Greece and serves as the administrative capital of Crete, with a population of 179,302 as of 2021, reflecting a growth of 3.1% from 2011 [11][14] - The city is home to significant cultural and historical sites, including the Archaeological Site of Knossos, which attracted over 920,000 visitors in 2023 [11] Demographics - The active population in Heraklion is approximately 79,369, with a labor force participation rate of 73.2% [17][20] - Educational attainment shows that 21.3% of the active population holds university degrees, while 3.8% have completed postgraduate studies [18] Structural Composition of the Economy - As of 2020, there were 36,792 registered enterprises in Heraklion, marking a 27% increase from 2015 [27] - The agriculture, forestry, and fisheries sector accounts for 54% of registered enterprises, while wholesale trade represents 12% [27][31] Sectoral Analysis - Employment is concentrated in wholesale and retail trade (18%), agriculture, forestry, and fisheries (16%), and education (13%) [33] - The number of registered enterprises increased across nearly all sectors from 2015 to 2020, with notable growth in agriculture and real estate management [28][30] Economic Performance - The total turnover of firms in Heraklion grew significantly, with wholesale and retail trade generating the highest average turnover per firm [12] - Employment in medium and high-skilled jobs accounted for 84% of the workforce as of 2022, indicating a shift towards higher skill levels in the labor market [22] Investment Opportunities - Key sectors for potential growth include tourism, ICT, and biotechnology, supported by strategic infrastructure projects [12] - The hospitality sector has attracted significant domestic and foreign investment, with numerous hotel acquisitions and developments since 2020 [12]