Gastouri is a huge tourist village because of the Palace of Achillion located here. This magnificent Palace was built in 1890 for the former Empress of Austria, Elizabeth (Sissy). The building used to serve as her summer retreat. Unfortunately, the Empress passed away in a rather tragic manner when she was brutally assassinated in 1898 in Geneva and the palace was deserted until 1907 when it was bought by Kaiser Wilhelm II of Germany.

The palace is located in a place of mesmerizing beauty with the coast down below, which still has the jetty where the Kaiser would embark on his cruises.

The Palace is not only renowned for its classical features. The impeccable palace garden is absolutely top-class and makes for a picture-perfect setting. Legend has it that the Empress fell so much in love with Corfu, that she ultimately decided to build a residence that she could call her own. The palace is located at the spot where the manor of the renowned philosopher Petros Vrailas Armenis stood.

Empress Elisabeth was also captivated and awestruck by ancient Greek legends and mythology. Her favorite hero was Achilles on whose honor she dedicated the palace. The garden of the palace is replete with rather artistically sculpted statues of the pantheon of Greek Gods and Goddesses that makes for a truly mythical setting.

During the time when the palace was occupied by the Kaiser, he is said to have removed the magnificent statues of Achilles and additionally constructed the House of the Knights with the sole reason of housing his battalion on Corfu. Even the palace garden was relandscaped according to the whims and fancies of the Kaiser.
The palace was given the status of a Public building after World War II.

Visitors can marvel at the exquisite mural positioned right at the reception enclosure which rather artistically portrays Achilles carrying the dead body of Hector. The popularity of the Achillion Palace also comes from the fact that the famous James Bond movie For Your Eyes Only was shot at this magnificent place.

Regarding Gastouri, in the village there are some small hotels and guesthouses. There are a lot of souvenir shops and restaurants. Gastouri is located in a very nice green area with some beautiful churches.