South Rethymno: Booking Freeze and 19 Damaged Buildings

Business owners in southern Rethymno describe a freeze in new bookings and open questions about compensation following the major fire. The burned area is estimated at approximately 55,000 hectares, and building inspections are complete, providing the first official picture of damage in an area in the middle of the tourism season and dependent on it.

According to data from the Directorate for Recovery from Natural Disasters, 55 building inspections were completed in Rethymno. Of these, 24 buildings were classified as green (suitable for use), 12 as yellow (restricted or requiring further inspection), and 19 as red (unsuitable for use). The number of red buildings represents more than one-third of those inspected.

Michalis Christoforakis, member of the Rethymno Hoteliers Association and entrepreneur in Agia Galini, describes how new bookings have stopped almost entirely since the fire. Agia Galini was evacuated during the fire, with guests leaving accommodations in mid-season, and how interrupted stays are handled financially remains unresolved for businesses.

Evacuating a coastal settlement in August has a double effect: immediate occupancy loss and medium-term damage to the destination’s image. Images from the fire fronts travel instantly to the markets from which visitors come, even when accommodation infrastructure remains untouched, beaches operate, and access roads are open.

For small units on the southern axis, the season is concentrated in a few peak weeks and cannot be recovered. Red buildings mean families displaced and businesses closed, while yellow buildings require repairs before reopening. The local labor market, heavily dependent on seasonal work, is directly affected by every week accommodations remain idle.

No compensation framework has been announced for visitors who interrupted their stays, nor has it been clarified who bears the cost when departure follows an evacuation order. Additionally, the estimate of 55,000 hectares for burned area differs from detailed satellite surveys circulating about individual fire fronts, as measurements are conducted with different methodology and at different times.

The coming period depends on the speed at which support procedures for affected buildings are completed and whether September bookings can be partially recovered. Business owners are calling for clear communication to foreign markets that the destination operates normally. Meanwhile, owners of red buildings await guidance on the next steps of reconstruction.