Factors of Authenticity: Exploring Santorini’s Heritage Hotels

Abstract

The purpose of this article is to investigate the factors that influence the authenticity of heritage hotels in popular tourist destinations. Using the Greek island of Santorini as a case study, the following three (3) factors, which have not been systematically studied so far, are examined and appear to have a significant impact on authenticity in the conversion of a heritage architectural building into a heritage hotel: (a) its structural characteristics, (b) the influence of the star classification system and (c) the extent to which each business promotes authenticity elements and heritage identity. For the purposes of this study, a threefold methodological approach was conducted, which includes archival research in the registry of the Hellenic Chamber of Hotels for all the heritage hotels in Santorini (69 units), research in the accounting data of the island’s heritage hotels certified with the national star ranking system for their services and amenities and research analysis of the information regarding the promotion of the heritage hotels through their official websites. Additionally, a cartographic representation of the locations of these hotels was created and their positioning was compared to the boundaries of traditional or non-traditional settlements. The results validated the basic finding of the literature review, that the authenticity of a heritage hotel is a construction under constant negotiation, influenced by a multitude of factors. The conversion of a historic building into a heritage hotel is a multidimensional process that requires a delicate balance between preserving cultural value and adapting to the needs of modern tourism, as well as a continuous evaluation and review of the policies in place.

1. Introduction

Heritage is now recognized as a valuable anthropogenic tourism resource, whose sustainable management requires a balance between protection and active participation in tourism development [1]. Many tourism destinations and tourism businesses are leveraging their unique heritage to enhance their competitive advantage [2]. A heritage hotel is an accommodation that is directly linked to the area’s heritage, whether cultural, historical, architectural, or all three. This type of accommodation can be housed in buildings either originally constructed as hotels that have gained historical value over time, or those that were created for other uses and subsequently converted into hotels, while retaining their cultural and historical character [3].

Maintaining authenticity and promoting historical and cultural heritage through these hotels helps preserve and revive local traditions and enhance the cultural identity of destinations. Additionally, the introduction of tourism uses in heritage buildings simultaneously supports several sustainable development objectives, such as the preservation of local heritage, the diversification of the dominant tourism development pattern, and the rational spatial and temporal dispersion of tourism development [4].

Authenticity is crucial for heritage hotels, as it directly shapes tourists’ perceptions of the cultural and historical identity of a place and satisfies their needs and desires by offering unique experiences. Authenticity is closely linked to the sense of genuineness that visitors seek, creating a strong emotional connection with the place and its history [5]. It encompasses both the cultural and historical value of the buildings and the management and promotion of the final heritage product. For this reason, heritage hotels are perhaps among the most challenging types of tourism accommodation, as they must meet the requirements of heritage preservation while providing quality tourism experiences in an integrated heritage tourism product.

However, despite the important role that heritage hotels play in tourism, the existing literature on the subject is sparse and often lacks a systematic framework [3,6,7,8,9]. This study seeks to fill this gap by exploring the authenticity management of heritage hotels and identifying key influencing factors. Specifically, it examines these hotels’ structural characteristics (such as size, business profile and location), the impact of the star rating system on their offerings and the extent to which each hotel promotes authenticity and heritage identity.

This study aims to investigate the factors that influence the authenticity of heritage hotels in the context of a popular tourist destination. The structure of the study consists of two parts:

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The first part examines the concept of authenticity in tourism, with a particular focus on heritage hotels, through a review of the international literature. It also analyses the institutional framework of heritage hotels internationally and specifically in Greece. Greece was chosen for the study because it has a rich architectural heritage and a comprehensive institutional framework for heritage hotels.

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The second part of the research focuses on the case study of Santorini. A complex methodological analysis of secondary material from different sources is applied. The case of Santorini constitutes a privileged field of research for specific reasons detailed in Section 3.1. It possesses a unique architectural heritage, and since the 1970s, policies have been implemented to develop heritage hotels on the island. Its reputation as a mega-destination provides opportunities for quick returns on investments like the conversion of heritage buildings into hotels.

2. Literature Review

2.1. The Complex Concept of Authenticity in Heritage Hotels

MacCannell [6] introduced the concept of cultural authenticity in tourism studies in order to analyze the tourist experience in historic sites. Since then, authenticity has been one of the most debated concepts in tourism research [7,8]. A significant number of academic articles have proposed a range of different conceptual approaches to the question of authenticity. From the outset, there has been a debate about the question whether authenticity is an objectively identifiable characteristic of objects and cultures or a subjective perception constructed socially and individually [9].

Objective authenticity [10] refers to the authenticity of the original. Objectivists argue that the authenticity of the object can be determined by absolute and objective criteria or by evaluating it according to certain standards. Since tourists often lack expertise, objective authenticity is usually judged by experts [11,12]. On the supply side, several other researchers relate authenticity to the intrinsic values (or uniqueness) and the characteristics of the place or resource [13].

On the contrary, constructivists consider authenticity to be a dynamic and even negotiable concept [14]. Constructivists point out that the construction of authenticity is an inherent characteristic of tourism. It is inherent in tourism planning, either at the enterprise and product level, or in regional and national strategies [15]. MacCannell [6] first introduced the concept of staged authenticity to describe a place or experience created for the purpose of tourist enjoyment with the intention of giving the image and sense of an expected authenticity. Quite close to this concept, Cohen (1988) formulated the concept of emergent authenticity, noting that tourists’ experiences can be authentic even when they are perfectly aware that the setting has been fabricated. For such a conception of authenticity, Wang [10] used the term constructive (or symbolic) authenticity.

Finally, the postmodernism approach deconstructs the notion of originality and blurs the line between the fake and the real [16]. According to this approach, postmodern tourists do not really seek authenticity. They even accept limitations or simulations created by modern technology and convincing presentations can make everything look and sound real [10,17].

2.2. Authenticity Factors in Historic Hotels

Despite the considerable literature on the issue of heritage authenticity in tourism, research specifically on authenticity in heritage hotels is significantly limited [3]. The review of the literature shows that authenticity in heritage hotels is in a continuous process of negotiation, involving various factors on both the demand and supply side.

The preservation of original architectural features, the use of traditional materials and techniques and the quality/authentic decoration enhance the sense of genuineness, offering an authentic accommodation experience [18]. This sense of authenticity is further supported by the institutional framework which shapes the standards for the preservation and restoration of historic buildings [19]. Internationally, incentive policies for converting listed buildings into heritage hotels focus on protecting and revitalizing historic buildings while promoting tourism and the local economy. These policies typically include financial incentives such as tax relief and grants, regulatory alleviations, urban planning privileges and state control structures to ensure that the building conversions respect their heritage and history [20,21,22]. Some countries have extensive experience in implementing specific programs that result from the collaboration between governments, local authorities, the private sector and other stakeholders to encourage sustainable development and heritage protection. Examples of such practices are the Spanish state-owned luxury heritage hotel chain Paradores de Turismo de España [23]. Pousadas de Portugal, a chain of luxury historic hotels in Portugal and a member of Historic Hotels of Europe [24], and the ‘dispersed hotel’ concept, ‘Albergo Diffuso’, created in the 1980s in Italy [25,26]. Wahab et al. [27] point out the need to have rules for both the restoration of buildings and the introduction of tourism use in their reuse. National systems that classify heritage hotels into quality categories seem to play a crucial role in the process of co-creating the final heritage product and forming a heritage hotel’s identity [28].

A heritage hotel is also the outcome of involvement from various stakeholders [29]. A significant number of scholars, mainly from the fields of sociology and marketing, are investigating how guests’ perceptions and involvement positively influence the heritage experience in a heritage hotel [30,31,32,33,34,35]. In contrast, the perspective of heritage hotel managers has been studied very little. In her studies, Chhabra [4] views the constructed authenticity of the heritage hotel as the final tourism product, which results from both the integration of tourism use into the historic building and the narrative and overall concept of the heritage hotel. In their research, Xie & Shi, ref. [28], demonstrate the importance of co-creation and the role of entrepreneurs in shaping a new identity for a heritage site. Marghany et al. [36] delve into staff attitudes, and through their research they examine how employees in heritage hotels see themselves as local cultural managers and storytellers of heritage experiences. Customer experience is also affected by the quality of physical and interactive services [37]. According to Hastjarjo et al. [38], the management strategy in heritage hotels should include staff training and integration of systems to create authentic experiences. Hussein and Hapsari [19] emphasize that effectively presenting heritage through storytelling and the design of related services enhances the authenticity and appeal of heritage hotels. Additionally, the way heritage is presented on websites can either strengthen or diminish the perception of authenticity [39].

The local context is also found to impact the authenticity of heritage hotels. The reuse of historic buildings is increasingly promoted as a sustainable and practical approach to revitalizing historic city areas and traditional settlements. This strategy supports conservation efforts, while also delivering social, economic, and environmental benefits to the local community [30]. Historic hotels enhance the attractiveness and the identity of their destinations by promoting local arts and crafts, music, and local agri-food [40]. Therefore, heritage hotels should embrace the local culture and traditions as well. However, the level of authenticity depends on the cultural codes of the host community, the identity of the destination and the conditions surrounding the “sale” of the tourist use [4,31]. Henderson [41] further argues that heritage hotels should be examined from both theoretical and practical perspectives, as stakeholders play a key role in verifying the identity, the heritage, and the collective memory of a destination.

It is important to note that the measurement of authenticity in heritage hotels varies significantly in the literature. Some studies, like those of Xie and Shi [8], utilize qualitative assessments, focusing on guest perceptions and narrative authenticity. Others, such as Cohen and Cohen [15], adopt more quantitative approaches, evaluating objective authenticity through measurable criteria. Despite these varied methodologies, there is a consensus on the complex, negotiated nature of authenticity. This study adds to the existing body of research by examining how structural characteristics, regulatory frameworks, and promotional strategies intersect to influence authenticity in heritage hotels, highlighting gaps and opportunities for further investigation.

2.3. International and National Institutional Framework for Heritage Hotels

Examining the classification of heritage accommodation at the international level reveals a variety of categorization and certification practices, as well as differing institutional frameworks and structures [42]. Two main approaches can therefore be distinguished:

A. Open classification systems that promote heritage hotels as a special category of accommodation distinct from other hotels. These are mainly found in countries with mandatory classification systems in Europe, such as Croatia, Italy, Spain, and in Asia, such as Turkey, India, Indonesia, and China. These countries have a specific legislative framework that categorizes certain structures and buildings as heritage tourism accommodation, exempting them from adhering to formal standards.

B. Closed classification systems that do not differentiate heritage hotels from standard hotel accommodation. These are mainly found in countries with voluntary classification systems, managed by professional associations such as the USA, Australia, and Canada. This category also includes countries like Poland and Greece (after 2018), which have mandatory classification systems that incorporate heritage properties into the standard classification system by allowing for certain derogations.

In Greece, the state’s concern for including architectural heritage buildings in tourist facilities was systematically addressed in the mid-1970s. In 1975, the Greek National Tourism Organization (GNTO), following the logic of the Spanish Paradores, implemented the Traditional Settlements Program (1975–1992). This was an ambitious large-scale public project, establishing the first link between tourism development and the modern architectural heritage in Greece. The program initially included six settlements throughout Greece, such as Oia in Santorini and individual buildings in other regions [43,44].

Presidential Decree (P.D.) 33/1979 introduced heritage hotels in Greece (originally named “traditional accommodations”). Unlike typical tourist accommodations, the 1979 system was “open” and did not impose specific standards but treated each historical hotel individually, providing only “basic modern amenities” where conditions allowed. Over the years, and with the support of state subsidies, the 1979 decree helped create a significant stock of architectural heritage accommodation throughout Greece.

In 2018, Law 4531/2018 radically changed the classification scheme for heritage hotels. The new law treats heritage hotels as standard hotel accommodation, with the obligation to comply with their specifications in order to be classified in star categories. The new framework, characterized as a “closed classification system”, emphasizes sleeping amenities, human-centered services, leisure and wellness services, digital marketing and special certifications [45].

As difficulties in adapting heritage hotels to rigid technical specifications quickly became apparent, provisions were made for regulations and deviations specifically for heritage hotels by the Decision of the Minister of Tourism No 17352/2018, such as:

• The deviation of heritage hotels from the minimum mandatory required dimensions applicable to public areas and rooms of hotels.
• The minimum number of points of the optional scoring criteria required for the classification of hotels in each star category was reduced.
• A number of mandatory amenities for 5- and 4-star hotels, such as restaurant, bar or room service, became optional criteria for heritage hotels.
• Heritage hotels were exempt from the provisions for the accessibility of disabled persons to hotel rooms.

From 2018 to date, only 118 heritage hotels out of the total of 739 hotels in operation (percentage 16%) have received a star classification certificate from the Hellenic Chamber of Hotels (HCH).

3. Materials and Methods

3.1. The Case of Santorini: Heritage Architecture, Tourism, and Applied Policies

The island of Santorini (or Thera) is located in the southern Aegean Sea, the southernmost of the Cycladic islands. Its area is 76.19 km² and its permanent population 15.480 people (2021 Census).

The spectacular landscape of Santorini is mainly the outcome of its tectonic history through the centuries. The volcanic landscape, combined with the unique architectural morphology and the inventive composition of settlement clusters, serves as evidence of an architectural history spanning centuries [46]:

(a)

“Mansions”, or “Captain’s houses”, are found in specific areas of the island and have Venetian influences, such as marble frames on the doors and windows and a marble pediment with the owner’s name. They belonged to the economically powerful community of the island, including captains and merchants.

(b)

The “caves” are the cave dwellings of Santorini which are dug into the soft volcanic soil on the slopes of the caldera, and consisted of two rooms with openings in the front for air and light.

(c)

The “kanaves” were the underground wine cellars or wineries.

The landscape of Santorini has been under state protection since the 1960s, as a landscape of special natural beauty, while in 1972 the entire island was declared historic site. Eighteen settlements of the island were characterized as “traditional” and were protected or upgraded by specific decrees with particular building regulations, institutionalized in 1978 and 1988. In the 1970s, tourism was boosted by a series of public infrastructure works, such as the airport (1972) and the cable car (1976). In 1976, the GNTO included the island’s notable residential areas in its program for the preservation and development of “traditional settlements”, restoring old building shells and converting them into guesthouses). After the 1980s, Santorini’s landscape transformed significantly, adapting to the conditions set by its new economic base: tourism. Initially, abandoned elements were restored within the old settlements (Fira, Firostephani, Oia, Imerovigli, Megalochori), preserving the authenticity of the built environment. During this period, the first modern and larger hotels—for the island’s size—were built, outside the traditional settlements [47].

Since the 1960s, Santorini has been one of Greece’s most popular, established, and emblematic cosmopolitan destinations. The airport of Thira is international and serves a large and constantly increasing number of travelers, both with domestic flights and with international flights (charters). Nevertheless, the largest number of passengers are transported from the port. From 2015 onwards, an “explosive” increase was recorded, with the total number of tourists exceeding 2.5 million arrivals [47]. It is a “mega-destination” of the sun and sea, which has been enriched with special tourism products, such as wedding tourism, wine tourism, and luxury tourism. Santorini is home to 21% of Greece’s 5-star hotels, with 69 out of 873 properties and 9% of the country’s heritage hotels, with 69 out of 739 properties [48]. Since the mid-1980s, the need to regulate tourism development has been recognized and, for the first time, measures have been taken to restrict the construction of hotel installations in the wider area of the caldera rim. The municipality of Oia and the entire caldera bay were declared “tourist saturated areas” and the construction of new hotel beds was banned. At the same time, the settlements of Kamari and Perissa were declared ‘areas of “controlled tourism development”, allowing only the construction of new upscale-category hotel beds. In the same vein, the Residential Control Zones were institutionalized in 1990 and 2012, establishing permitted uses, conditions and building restrictions for the entire island. The conversion of old buildings into heritage hotels was allowed even in saturated areas, which led to a greater impetus in the development of this type of accommodation on the island of Santorini [47].

3.2. Data Collection and Analysis

The purpose of this research is to investigate the factors that influence the authenticity of heritage hotels in popular tourist destinations. The Greek island of Santorini constitutes a privileged field of research due to its distinct architectural tradition, as analyzed in Section 3.1. Additionally, it is one of the Greek destinations with the highest number of heritage hotels [45], as national policies encouraging the development of this specific type of hotel have been implemented on the island since the 1970s. Moreover, as one of the world’s leading tourist destinations, Santorini offers significant opportunities for a quick return on investment in the development of heritage hotels.

For the purposes of our research, a multi-criteria system was developed to classify, analyze, and interpret the mechanisms and conditions involved in the establishment and transformation of heritage hotels. The research was conducted from January to May 2024. Specifically, three (3) parameters were examined as influencing the authenticity of converting a heritage architectural building into a heritage hotel: (a) structural characteristics, (b) the impact of the new regulatory framework on the authenticity of heritage hotels, (c) the extent to which each business projects elements of authenticity and heritage identity. In this context, a threefold methodological approach was employed (Figure 1).

• Conducting archival research in the register of the HCH for all heritage hotels in Santorini (69 hotels) to analyze their structural characteristics:

• RQ1. What are the (a) size, (b) legal form, and (c) star class characteristics of heritage hotels?
• RQ2. What are the (a) site characteristics, (b) spatial concentrations, and (c) seasonality of heritage hotels?

The archival material collected from the register of the HCH was converted into quantitative data to facilitate the analysis of the functional and spatial constitution of the heritage hotels on the island. In particular, the following data were analyzed and interpreted from this research:

• The evolution of heritage hotels based on their opening dates, categorized by star ratings (5 star–1 star) and their percentage distribution across three spatial levels: the whole country, the region (South Aegean, where the island belongs administratively) and the municipality.
• The average size of these hotels, as classified by the Research Institute for Tourism (2020): very small hotels (up to 20 rooms), small hotels (21–50 rooms) and medium hotels (51–100 rooms).
• The legal forms of heritage hotels, grouped into partnerships (including sole proprietorships, general and limited partnerships), limited liability companies, and various other forms of companies.
• The correlation between the development of heritage hotels and the overall hotel capacity on the island.
• The duration of their operation (year-round or seasonal) and its comparison with the seasonality of tourist demand (monthly air arrivals of tourists to the island for the period 2010–2013).
• The spatial distribution of heritage hotels according to altitude and location.

The homogenization and processing of the above data were conducted using Excel 2016, with the results recorded in tables and plotted in graphs. Additionally, a cartographic representation of the spatial dispersion of the hotels was created. Using a cartographic background of Santorini downloaded from Google Maps, the contours of the traditional settlements were initially mapped as depicted in the register of the Ministry of Culture and on the websites gis.epoleodomia.gov.gr/v11/ and app.gisislands.gr. The accommodations were then identified by their coordinates. Each accommodation, depending on its location, was classified as either within the boundaries of a traditional settlement, within the boundaries of a non-traditional settlement or outside the boundaries of any settlement. The establishments were divided into four (4) categories based on their start of operation, each represented with a different color: until 1989, 1990–1999, 2000–2009 and 2010–2024.

ii.

Archival research on the accounts of heritage hotels certified under the new star classification system was conducted to investigate the impact of the new standards framework on the authenticity of Santorini’s heritage hotels. The new national ranking system is based on a set of mandatory criteria and graded optional criteria. A combination of a minimum number of these criteria, known as the “base”, is required for a hotel to be classified in the desired star category. The mandatory criteria mainly concern technical specifications, such as minimum room and public area dimensions, while the optional criteria cover a range of amenities and services.

During the period 2018–2024, 14.5% of Santorini’s heritage hotels (10 out of 69 hotels) were classified under the new national system. These hotels fall into the upscale categories of 5- star and 4- star. From the accounts of the certifications of these hotels, the operational criteria that they declared in order to achieve their star classification were identified. These criteria are associated with the provision of specific amenities and services to their customers.

In particular, the following questions were addressed:

• RQ3. Does the current classification system reward elements that enhance the authenticity of heritage hotels?
• RQ4. Does the current classification system compel heritage hotels to invest in areas or services that compromise their historical authenticity?

iii.

An analysis of the information presented on the websites of all 69 heritage hotels of Santorini was conducted. The analysis of the hotels’ websites was chosen because it is one of the most important tools available to hoteliers for establishing an online presence. Additionally, they reflect the hoteliers’ perspective on how to promote heritage hotels, which was one of the key research questions. The aim was to investigate the extent to which elements of authenticity and heritage identity are promoted. The following information was collected from the websites: brand name, verbal logos, references to and/or analysis of the building’s historical value, architectural design, a description of the process of converting the building into a hotel, a presentation of the features that highlight authenticity, an analysis of the facilities and services in the rooms and public areas, and special certifications.

The following questions were designed to capture the narrative each heritage hotel promotes:

• RQ5. How is the historicity of the hotel displayed on the website?
• RQ6. (a) What is the construction period of the hotel building, (b) what is the architectural style of the hotel building, (c) what was the previous use of the heritage hotel building?
• RQ7. (a) What type of accommodation is displayed on the website? (b) In which languages is the hotel’s website available for browsing?

The results of the information gathered from the official websites of the heritage hotels were grouped together to allow for a comparative analysis:

• RQ5: A simple choice scale was used where only one of the suggested answers is possible: (a) not at all: no mention of the historicity of the hotel, (b) moderately: provides some information about the historicity of the hotel, and (c) extremely: promotes heritage as a key concept for the hotel.
• RQ6: Information was grouped as follows: (a) construction period of the building by century, (b) type of architecture of the building, categorized as Local Folk Island Architecture, Neoclassical, and Venetian, and (c) previous conversion of heritage hotel buildings into caves, mansions/captain’s houses, kanaves, and other types of heritage buildings.
• RQ7: The material and information contained on the websites were evaluated and grouped into luxury suites, boutique hotel, heritage hotel, historic hotel and villas. Information was also collected on the browsing languages offered on the websites.

The results were recorded in Excel tables and plotted in graphs. The survey revealed that three heritage hotels have no website and two heritage hotels have permanently closed.

4. Results

4.1. The Structural Characteristics of Heritage Hotels

• RQ1. What are the (a) size, (b) legal form, and (c) star class characteristics of heritage hotels?

The heritage hotels in Santorini are predominantly very small independent units, with an average size of 12 rooms (or 22 beds). In these establishments, the owner or manager—often the same person—is primarily responsible for the organization and management of the accommodation. This is also evident from their legal form, as 54% of these hotels are partnerships, which include 19% sole proprietorships and 35% limited partnerships. Essentially, from an entrepreneurial perspective, it can be observed that heritage hotels are family-run businesses with strong, enduring connections over time. Even 23% of heritage hotels, structured as limited liability companies (LLCs), significantly include converted family businesses, to ensure their long-term institutional sustainability (typically with a 50-year limit). This trend, also noted in Nazou’s research (2003), helps secure a legally guaranteed lifespan of at least two generations, providing a sense of stability and continuity.

The development of heritage hotels in Santorini is closely linked to the state policies implemented over time. Specifically, the increase in heritage hotels on the island during the period 1980–2009 is associated with the favorable institutional framework of Presidential Decree 33/1979, as well as with subsidies and spatial privileges for this category of accommodations. In contrast, in the last decade, heritage hotels have not followed the significant growth of general hotels on the island, a fact that can be attributed to changes in the classification framework (Figure 2).

Over the past 14 years (2010–2024), Santorini has experienced significant investment in establishing high class units, particularly luxury hotels. During this period, 49 five-star hotels with a capacity of 3800 beds have been created (see Figure 3). As a result, the luxury category now represents 21% of the island’s hotel capacity. In contrast, in Greece as a whole, this hotel category accounts for only 4% of the total hotel capacity. This shift indicates a trend towards luxury tourism in Santorini’s tourism offerings.

• RQ2. What are the (a) site characteristics, (b) spatial concentrations, and what is the (c) seasonality of heritage hotels?

The heritage hotels of Greece, based on their altitude and location, are primarily developed in coastal and lowland areas. They can be categorized into heritage city hotels and heritage resort hotels [45]. In the case of heritage resort hotels, they have predominantly developed over time in the South Aegean region, representing 20% of these units nationwide. Santorini shows the highest concentration of heritage hotels both nationally (9.3%) and regionally (48.2%). Additionally, heritage hotels account for a significant portion of Santorini’s total hotel capacity (17.4%). The vast majority of heritage hotels in Santorini are seasonal (87%), operating from April to the end of October. However, the seasonality in Santorini is extensive compared to other destinations in Greece. The evolution of monthly total air arrivals to the island between 2010 and 2023 indicates that seasonality has been significantly mitigated (see Figure 4).

Based on the mapping of the heritage hotels of Santorini (see Scheme 1a), it is evident that 80% of these hotels are situated within the boundaries of the island’s settlements and only 20% are located outside settlement boundaries (primarily conversions of buildings from 2000 onwards). Notably, the vast majority (78%) are concentrated within the boundaries of the traditional settlements on the Caldera side of the island, specifically in Fira, Oia and Imerovigli (see Scheme 1a–d). The remaining 22% are found in traditional settlements in the island’s interior. This distribution reinforces the spatial concentration of hotel capital, but does not entirely align with it, as no heritage hotels are present in the newer tourist areas of the island such as Kamari and Perissa, which currently host 21% and 11% of the classic-type hotels, respectively.

4.2. Investigation of the Impact of the New National Star Rating System on the Authenticity of Santorini’s Historic Hotels

• RQ3. Does the current classification system reward elements that enhance the authenticity of heritage hotels?

Based on the classification of the heritage hotels under the new national star rating system in star categories from 2018 to 2024, the following results have s emerged:

The ranking system indeed supports the comparative advantages of heritage hotels, particularly regarding their location and the distinctiveness of their buildings. All hotels that achieved classification met the following two optional criteria, receiving high scores (100–300 points):

• Located in a designated traditional settlement or an area of outstanding natural beauty.
• Operating within architectural heritage buildings.

Additionally, the ranking system rewards features that contribute positively to the destinations, such as quality management, sustainability and endogenous development certifications. Specifically:

• All classified hotels have developed a customer complaint management system, earning 100 points each, while three of them received an additional 200 points for being certified with the boutique hotel quality label of the HCH.
• Eight (8) out of the ten (10) hotels are associated with local cuisine and products, earning between 200–450 points for certifications like the Greek Breakfast label from HCH and/or the special Greek Cuisine quality label of the Ministry of Tourism.
• Four (4) out of ten (10) hotels received high scores (150–500 points) for adhering to international environmental management standards [such as ECOLABEL [49], Green Key [50]), and/or for developing organic agriculture or using organic products.
• Four (4) out of ten (10) hotels were also highly scored (150–500 points) for following international corporate social responsibility standards [ISO 2600:2010 on Social Responsibility International Organization for Standardization [51]).

• RQ4. Does the current classification system compel heritage hotels to invest in areas or services that compromise their historical authenticity ?

The current classification system requires heritage hotels to adapt their interiors to specific technical and operational standards. Within this framework, Santorini’s historic hotels that have been classified as luxury (5-star and 4-star) have developed facilities and services that make them indistinguishable from typical luxury hotels. Specifically:

• All hotels are required to have an adequate breakfast room and dedicated space for reception and rooms/apartments.
• All hotels are required to have 28-inch or larger televisions in their rooms.
• Seven (7) out of ten (10) hotels have a catering outlet and a leisure outlet (canteen or bar), which are requirements that receive 500 and 250 points, respectively.
• Seven (7) out of ten (10) hotels have communal swimming pools of up to 150 m², with four of these hotels also featuring whirlpool and massage pools.
• Two (2) out of ten (10) hotels also have private swimming pools in 50% of their rooms, earning 300 points.

The inclusion of heritage hotels in a closed system that uses strict, objective criteria forces these hotels into a homogenization with typical hotels. This process overlooks the unique nature of these buildings, whose primary goals should be preserving historical memory and enhancing architectural value, while also incorporating modern amenities as much as possible.

4.3. The Promotion of Authenticity and Heritage Identity by the Hotels

The key insights derived from analyzing the data on the official websites of heritage hotels in Santorini are summarized below:

• RQ5. How is the historicity of the hotel displayed on its website?

Only 31% of the heritage hotel websites provide information about the history and former uses of the building. Within this group, only 9% actively promote the cultural value of the properties (refer to Figure 5). A recurring theme among these Santorini hotels is the significance they place on repurposing the buildings for tourism, considering their previously dilapidated state. This necessitates a systematic methodological approach to both exterior and interior restoration and revitalization.

• RQ6. (a) What is the construction period of the hotel building, (b) what is the architectural style of the hotel building, (c) what was the previous use of the heritage hotel building?

The majority of the historic hotels in Santorini are located in buildings constructed between the 18th and 19th centuries and early 20th century (see Figure 6). It is also observed that their building shells almost exclusively (over 90%) adhere to the patterns of the local vernacular island architecture and their historic context. It is important to note, however, that only 28% of these heritage hotels provide information on the specific periods when their buildings were constructed.

It should be emphasized that the heritage hotels in Santorini encompass all categories of local architectural heritage buildings. These hotels primarily originate from various traditional structures such as caves (the cave dwellings used by crews), captains’ mansions, kanaves (cave wine storehouses or cellars) and other types of heritage buildings (see Figure 7).

• RQ7. (a) What is the type of accommodation displayed on the website? (b) In which languages is the hotel’s website available for browsing?

According to RQ7, heritage hotels in Santorini are divided into two groups (see Figure 8):

The first group comprises an impressive 80% of the sample that, though licensed as heritage hotels, promotes different aspects of the hotel product. Specifically, 46% market themselves as luxury suites, 25% as boutique hotels and 9% as villas. The imagery and information contained on their websites align with this identity, showcasing luxury amenities, personalized services, and design elements typical of 5-star hotels. This is particularly notable in the caldera area, which features slopes incorporating swimming pools, whirlpools, and private pools, both outdoor and indoor. Interestingly, of the thirty-one heritage hotels listed as luxury in the official hotel register, only three hold a 5-star rating; the majority, seventeen, are 4-star establishments, with the remaining eleven rated as 3-star and 2-star hotels. Moreover, of the seventeen heritage hotels that claim boutique hotel status, only two are officially certified as a boutique hotel by the HCH.

The second group comprises only 20% of heritage hotels, which are marketed explicitly as heritage and historic establishments. The websites for these hotels feature detailed accounts of each building’s restoration process, focusing on preserving original architectural elements and employing traditional materials and techniques. Within the public areas and guest rooms, there is a strong emphasis on authentic décor, including furnishings and artworks by local artisans, traditional styles, and fabrics, all enhancing the sense of authenticity. These hotels strive to deliver an authentic accommodation experience, weaving a narrative about the building’s history and its locale that permeates all aspects of the property. This group leverages the hotel’s location and emphasizes local heritage to forge a distinctive, authentic identity that is challenging to replicate. In most cases, Aegean architecture is presented scenographically, utilizing various design strategies to amplify the emotional impact of the experiences offered by the hotel in relation to its environment the landscape itself.

Finally, the survey revealed that all hotel websites sites provide information primarily for potential foreign tourists, with English being the default language. Notably, 44% of these sites do not offer the option to browse in Greek, underscoring that Santorini mainly caters to international rather than domestic tourists. This language choice highlights the destination’s strategic focus on attracting visitors from abroad.

5. Discussion

Authenticity in heritage hotels was examined in this research from the supply side by adopting a basic dichotomous approach: the objective authenticity of the historic heritage of the building, which can be certified with measurable criteria by experts, and its constructed authenticity as a final tourism product, resulting from how the tourist use is integrated into the historic building and how the overall concept of the heritage hotel is promoted. The study enriches the existing literature by providing a comprehensive framework that addresses both the tangible and intangible aspects of authenticity in heritage hotels, thereby offering significant theoretical insights into heritage tourism.

The review of existing literature shows that authenticity in heritage hotels is in a continuous process of negotiation, involving various factors on both the demand and supply side. This study adds to the existing body of research. The theoretical contribution of the study lies in examining the interaction of three supply-side factors that have not been studied in combination in the existing literature. These factors include (a) the structural characteristics of each hotel that reflect the unique conditions of the local tourist offer, (b) the new institutional framework governing heritage hotels in Greece, and (c) the extent to which each heritage hotel projects its authenticity and heritage identity through its website, using the island of Santorini as a case study. This approach provides a holistic view that can guide both future research applications in the field.

The practical implications of this study offer significant insights into the factors contributing to the authenticity of heritage hotels in Greece, particularly in Santorini. It was found that the institutional framework governing heritage hotels is a critical element that can either enhance or detract from the authenticity experience for visitors. Specifically, the Greek national star classification system is criticized for being rigid and closed, with specific technical and operational standards requiring adaptations for Santorini’s heritage hotels, which may compromise their authenticity.

This research examined how the interaction of three selected supply-side factors influences the authenticity of heritage hotels in the case of Santorini. Future research could explore the same factors in different destinations to provide comparative results. Additionally, investigating demand-side factors, such as tourists’ perceptions, which were not considered in this study, could offer a more comprehensive understanding of authenticity in heritage hotels across various contexts.

6. Conclusions

In order to carry out this study, a threefold methodological approach was adopted, including archival research in the register of all the heritage hotels of Santorini (69 units), the recording of their star classification data and the analysis of the information promoted on their official websites. In addition, a cartographic representation of their location within or outside the traditional settlements of the island was made. The results confirmed that the authenticity of a heritage hotel is a construct under constant negotiation, significantly influenced by supply-side factors.

Santorini’s heritage hotels are mostly small, family-run units, enhancing authenticity and offering a unique, home-like experience with warm hospitality. Most are located in traditional settlements, providing an authentic residential environment. These hotels occupy buildings that showcase the full range of local architecture, including mansions, caves, and kanaves, highlighting tourism’s role in protecting and promoting architectural diversity.

It emerges that the institutional framework plays a crucial role in preserving the authenticity of heritage hotels. Architectural heritage protection policies and incentives for the renovation of historic buildings contribute to maintaining their traditional characteristics. Specifically in Santorini, a series of government policies, such as the implementation of the traditional settlements program in the settlement of Oia (1975–1990), laid the foundations for linking tourism with the local architectural heritage as early as the 1970s. Additionally, various regulatory policies that exempted heritage hotels (saturated areas, Housing Control Zones) appear to have further encouraged the conversion of traditional buildings into historic accommodation. However, the current closed classification system sets standards which are proving to be quite inflexible for old buildings. This may explain the low implementation of the new classification framework in Santorini’s heritage hotels (14% have been classified), as well as the overall decrease in the addition of new heritage hotels on the island in general. In addition, encouraging—through optional criteria—the provision of modern amenities and facilities that are not in keeping with the historic character of the buildings (such as large televisions, modern breakfast rooms and swimming pools) is forcing changes that threaten authenticity. Overall, our research highlights the need to move towards a flexible classification system that rewards the authentic elements of heritage buildings and the provision of unique services that consistently support the historic narrative.

A key factor in perceived authenticity is how heritage hotels present themselves on their websites. Websites that emphasise the historical and cultural value of hotels by providing detailed historical information and images can enhance this sense of authenticity. However, in the case of Santorini, only 31% of heritage hotel websites provide information on the history and previous use of the building, and only 9% actively promote its cultural value. This finding highlights both entrepreneurs’ perceptions and the dominant orientation of the destination. The development of luxury tourism has been a dominant trend in Santorini over the past decade. An analysis of websites revealed that 80% of heritage hotels are promoted as “luxury suites” and “boutique hotels”, with only a small percentage marketed as “historic hotels”. This emphasis on homogenized luxury over authenticity and historical experiences could diminish the uniqueness of the accommodations and the destination compared to competitors. The lack of information or the presentation of inaccuracies leads to a loss of visitor trust and reduces the perception of authenticity. Since converting heritage buildings into hotels is a profitable and successful investment [52], subsidized by the state, clear guidelines could be provided to benefiting entrepreneurs to adequately highlight the authentic elements of architectural heritage.

This study confirms that balancing historical preservation, contemporary needs and perceptions in heritage hotels is critical [53]. Converting a historic building into a heritage hotel is a multifaceted process, requiring careful balance between preserving cultural value and adapting to modern tourism needs, along with an ongoing evaluation and revision of policies. The research results validated the main conclusion of the literature review, namely that the authenticity of a heritage hotel is a construct under constant negotiation influenced by numerous factors. The nature of the hotel product is redefined as a result of the negotiation between supply-related and demand-related factors within the context of a changing tourism consumption process [54].