Cyprus Tourism Today: What Must Be Done

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By Thassos Katsourides

General Manager,

Association of Cyprus Travel Agents (ACTA)

 

The problems faced by Cyprus Tourism are well known to all as a result of the frequent references to such problems in the media. Problems in this sector also affect all the other sectors of the economy since tourism contributed 12.40% to the Gross Domestic Product in 2006, while in 2001 that contribution was 20.53%. This fall may be due to the rapid growth of the other sectors of the economy and mainly the tertiary sectors but at the same time it does not necessarily mean that tourism has been on a downward course the last few years. Arrivals in 2001 were 2.7 mln while in 2006 they were 2.4 mln. Income from long stay tourist arrivals in 2001 was 1,271.6 mln pounds while in 2006 it fell to 1,027.3 mln.

At a time when world tourism is on the rise, Cyprus tourism is continuously slipping and this is not only due to political trouble in our region and/or to various other external factors. We are also to blame.

So, what must be done? If we believe in tourism and its contribution to the wellbeing of the whole of our society, we need to seriously study the problems and we should all reach daring decisions in order to reposition our tourism on a firm upward course.

 

WHAT MUST BE DONE:

1.                  Establishment of an Independent Ministry of Tourism – the constitutional problem can be solved through grouping of Ministries.

2.                  Participation in the Board of Directors of the CTO and the state-owned Air carriers (Cyprus Airways, Eurocypria) should include persons with deep knowledge of tourism who come from the ranks of the professional associations.

3.                  The CTO board must be given “super powers” in order to have effective intervention within Ministries and state authorities for better planning, monitoring and implementation of action plans.

4.                  A marked improvement in our competitiveness can be achieved through serious incentives to be given to foreign tour operators (who supply 65% of all incoming tourism. Airport charges must be removed or subsidized by the state, while state-owned air carriers should also reduce their prices to attract for package tourism. There is also a need to securing sufficient national and/or community funds for projects that will enhance the attractiveness of Cyprus, while VAT must also be reduced for catering and generally for the tourist industry as happens in other European countries.

5.                  Marketing must be intensified to acquire a special identity, so that Cyprus will be different from similar destinations, either through strengthening the new CTO campaign “Love Cyprus” but made simpler, or by increasing available funds, such as the amounts spent by competitive destinations.

6.                  The most urgent need is to prepare and put into force a Plan of Action for amelioration of seasonality which during the winter period 2006-2007 showed a regretful deterioration. One way is the reduction in the operational cost of licensed tourist establishments during the winter months through subsidized fuel prices, electricity, etc., and at the same time increased events for elderly tourists. There should also be a rule of “obligatory” operation as far as possible of a number of hotels during the winter months, as well as of catering and entertainment facilities. A reduced cost for guiding tourists during winter months is possible, as is the need for intensified targeted marketing to attract tourism during low traffic months.

7.                  Alternative forms of tourism must be promoted in view of the resounding failure to develop sports tourism (due to insufficient infrastructure/weakness for managing reservations, etc), while there must be a plan upgrade all sports grounds and for the construction of new ones for the training of teams and coordination between the Cyprus Sports Organization (KOA) and the CTO for the efficient and electronic management of reservations of the sports grounds.

8.                  Due to reduced profit and/or considerable losses, renovation is avoided and the services which are offered are downgraded due to savings. An indispensable precondition is the immediate introduction of incentives or subsidies both for the renovation of hotels and to turn some of them into boutique or club hotels. The subsidy plan announced recently was insufficient.

9.                  Work to improve archeological sites should be speeded up and a separate marketing plan is required.

10.             Until the completion of the new airports at Larnaca and Paphos it is imperative to proceed with further improvements at the existing airports mainly at peak periods when considerable problems arise.

11.             Without ignoring the importance of attracting tourism from the U.K., which contributes more than 56% of arrivals, plans must get underway to attract German speaking, French, Italian and other tourists.

12.             Cleanliness, conservation of the environment and a “tourist conscience” should not be limited to campaigns but must also be under constant check by the competent authorities. The cultivation of a tourism conscience will not only help the cleanliness but also that of behaviour and mentality and will put an end to profiteering.

13.             The inspection of the hospitality/foreign workforce is insufficient due to poor staffing. The ongoing training of all persons employed in tourism is vital and will result in the immediate “revival” of the traditional Cyprus hospitality, while caution is required in areas where a foreign workforce is used.

14.             In view of the unattractive appearance of some of our tourist areas (notices, advertisements, rubbish, etc.) it is imperative to immediately apply a plan to improve these areas, possibly utilizing European funds.

15.             Tourist Police is an immediate necessity that will include officers speaking foreign languages.

16.             Ways must be found for efficient and affordable road transport from the airports to the tourist areas, with a possibility of subsidies/incentives as happens with urban buses.

17.             We need more tour guides and to promote their training in languages which are not covered sufficiently. Licenses should be given only to guides who are truly employed, while the School of Tourist Guides must be operated every two years.

To conclude, there is a need to resolve the issue of seasonality and to implement the strategic plan which is under revision and to introduce such plans that can be implemented.

Major projects (golf courses, marinas, casino, etc.) will undoubtedly give added value to our tourist product that will help to attract tourists from specific markets.

Finally, the institution of the monthly meetings of the major players of the tourism sector with CTO must continue as this is regarded as a highly positive practice which may lead to very good results.