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Tourist arrivals in Cyprus increased by 2.8% year-on-year in January, from 40,675 to 41,799, with Israeli and German tourists taking the lead, but steady streams from the U.K., Greece and Russia were on the decline, with the Tourism Minister talking of challenges ahead in 2015.
According to data released by the statistical service Cystat, tourist arrivals from Israel grew by 65.8%, from 1,653 in January 2014 to 2,741 in January 2015. German tourists also increased by 50%, from 1,152 to 1,728.
In contrast, arrivals from the UK decreased by 5.6%, from 13,063 in January 2014 to 12,334 in January 2015 and declining numbers were also recorded in arrivals from Greece, by 5.7% and Russia by 0.8%.
This year will be difficult, full of challenges, Tourism Minister George Lakkotrypis said in a speech at the 37th annual Hoteliers Association meeting in Nicosia.
Keynote speakers discussed topics such as the prospects of air links between Cyprus and other countries, the situation in the Russian economy and its impact on Cypriot tourism, challenges and strategies for the hotel industry and its contribution to the local economy.
In his speech, Lakkotrypis said that the Russian market presents uncertainty and the country’s tour operators are considering whether and to what extent they will take risks, while on the other hand, he said, "there are encouraging signs from other major markets, such as the UK and Germany but also smaller markets of central Europe and the Arab Gulf ".
The vote of confidence in the country, such as the recent announcement for a major investment in Ayia Napa, expanding Cyprus’s air links and upgrading partnerships with tour operators abroad, leaves room for optimism, he said.
Referring to the Russian market, Lakkotrypis said 16-month collaboration projects with Russian tour operators have been decided.
He added that major infrastructure projects are being implemented such as a casino resort and new golf courses while work continues to promote and develop sports tourism, congress and cultural tourism.
Referring to 2014, Lakkotrypis said the first half was satisfactory both in terms of arrivals and in terms of revenue with a 6% increase in arrivals and 12% in revenue. In the second half, he said, things changed, proof of how vulnerable the tourism sector is.
Hoteliers’ Association President Haris Loizides said 2014 ended with a slight increase of 1.5% in arrivals, which was much lower than original estimates. Income was down by 3% compared to 2013, adding that developments in the political and economic front as far as Russia is concerned do not leave much room for optimism in 2015.
He said there was a decrease in arrivals from Russia in October of 29.3%, in November 25.2% and in December 12.5%. These trends, he added, are expected to continue in 2015.
Last week, the Cyprus Tourism Organisation said that summer bookings from the U.K., traditionally the biggest market for tourism, are expected to be about 10-15% higher, according to travel agents, with airline capacity also increased by 33,000 seats from last year.
The CTO said after its participation at the ‘Destinations Holiday and Travel Show’ held in London and Manchester, that “there was increased interest in summer packages”.
Tourist arrivals from the U.K. totaled 871,000 in 2014, accounting for about 36% of all holidaymakers to the island, but far short of the more-than-million tourists that Cyprus used to attract from Britain a decade ago.
High accommodation and food costs are often considered as the main obstacles to attracting more tourists, who prefer other Mediterranean destinations such as Greece, Spain, Egypt, Turkey and Tunisia.
Cystat said that for the 11-month period January-November 2014 revenue from tourism is estimated at EUR 1.98 bln, compared to 2.04 bln in the corresponding period of 2013, recording a decrease of 3.2%.
