Minister of Commerce, Industry and Tourism, Giorgos Lillikas appeared on Tuesday less optimistic with regard to the prospects of the tourist industry for 2004. Although the Finance Ministry anticipates that tourist arrivals will increase 5% in 2004, reversing the negative condition of the past two months, Mr. Lillikas was rather conservative on Tuesday. Few weeks prior to the World Travel Market Fair, Mr. Lillikas said that “2004 will be a tough year” due to the negative international trends in tourism.

According to AC Nielsen latest figures, British reservations for winter 2003-2004 and summer 2004 have dropped compared to the corresponding periods of 2002. In late September British reservations for November 2003-March 2004 and April-October 2004 have dropped 16% and 36% respectively.

“It is too early to have a full picture for the next season. The situation will become clear after the World Travel Market report of London”, a CTO official told StockWatch.

Mr. Lillikas is expected to visit London to have meetings with high-ranking officials of tourist organizations to sign agreements with big tour operators before the commencement of the summer season.

It is noted that tourist arrivals fell 6.3% for September, while for January-September 2003 they suffered a decline of 6.6%. For January-August 2003, tourist revenues dropped 9.6% compared to the corresponding period of 2002.

Tourism constitutes 20% of the Cyprus GDP. In 2002, the hotel and restaurant sector was 8.7% of GDP against 9.7% in 2001.