The prospects for the Cyprus tourism in 2006 will largely depend on the international economic environment, especially that of the European countries, which is the largest source of tourists for Cyprus and the enforcement of the strategic plan, a CTO explanatory memo for the budget 2006 reported. According to the memo, the other factors that will contribute to the increase in tourism are the policy to be followed by Turkey, Egypt and Greece and the political stability in Eastern Mediterranean and Middle East.

The developments on the Cyprus issue together with the T/C efforts to achieve direct flights to the occupied territories and the planning of the air seats capacity of the most popular tour operators will also play an important role.

As for the CTO budget for 2006, it will be financed by the 3% rate for CTO and other sources (£22 million). It is also necessary that the state grant the amount of £22.5 million, which is justifiable due to the importance of tourism in the island’s economy.