The withdrawal of lower quality tourist rooms is already a fact. The Cyprus Tourist Organization has already proceeded to invitation to tenders for a study on a “preparation of incentives” for the upgrading and/or withdrawal of low quality tourist rooms. A CTO official told StockWatch that the main aim of the Organization is a completed study by October or November so as to grant the necessary incentives by March 2005.

Low quality rooms are usually situated on old buildings with “multiple owners”. The incentives could provide for the change of use of the buildings or even their demolition, so long as they are “realistic”. They must also be in line with the EU legislation.

The CTO Strategic Plan also provides for the upgrading of the low quality rooms. The CTO is currently changing the existing quality criteria on the hotels, which should be seriously taken into account by the bidders. The incentives must be “substantial” and must take into account the economic condition of the Cyprus tourist industry.

PASYXE: Delay in announcement of measures

PASYXE General Manager, Zacharias Ioannides told StockWatch that the Association expected the announcement of the CTO measures in the first half of 2004, so that they could be adopted in winter.