According to a CYSTAT study released on Monday, tourist revenues are largely dissociated from tourist arrivals in Cyprus. Specifically, tourist revenues in March 2004 showed an increase of 11% to £42 million compared to £37.8 million in the corresponding period of 2003. This increase is lower than the corresponding variation of tourist arrivals, which amounted to 22%. The total revenues of the first quarter (£89.3mln) have shrunk compared to the corresponding quarter of 2003 (£94.9mln). Despite the fact that tourist arrivals for the first quarter of 2004 increased by 6%, tourist revenues fell 6% compared to the corresponding period of 2003.

It is noted that the first quarter of 2003 was marked by the war in Iraq. General Manager of the Tourist Companies Association, Fedias Karris told StockWatch that due to the Iraqi war we cannot compare the first quarter of 2004 with the corresponding period of 2003. Mr. Karris expressed his disappointment on the recovery of the tourist revenues and arrivals so far.

Who is to blame?

The subdued increase in tourist revenues in relation to the recovery of the tourist arrivals is a result of the high priced tourist packages in Cyprus, the lack of a Cyprus image and the seasonality, Louis Cruise Lines officer, Giorgos Michaelides told StockWatch. “The only thing we can expect now is delayed reservations in early summer. Our hopes have now turned to 2005 and 2006”.

Similarly, permanent General Secretary of the Tour Operators Association, Thanos Katsourides said that there is an acute demand to put into effect the CTO Strategic Plan in the construction of tourist infrastructure projects.

Impacts of ‘no vote’

According to StockWatch sources, the latest developments on the Cyprus issue and the possible impacts of the Cyprus tourism from the associations of the sector will soon be an issue of discussion.