High currency rates are not expected to affect tourist arrivals in Cyprus, market experts told StockWatch, commenting on the three-year increase of the Cyprus pound against the dollar and the sterling (1.96 and 1.22 respectively).

Hoteliers’ Union (PASIXE): Impacts will not be significant

PASIXE Chairman, Christos Koitazos told StockWatch that Tour Operators book their tourist packages one year in advance. As a result, this year’s tourist packages have been acquired at 1.05 and not 1.22 (Cyprus exchange rate against the British sterling), excluding, of course, each person’s pocket money.

Mr. Koitazos noted that the difference in exchange rates plays an important role in tourist arrivals, especially when the exchange rate of the Cyprus pound against the other currencies is negative.

PASIXE Chairman stressed that Cyprus is the most expensive Mediterranean destination. The island is 40% more expensive compared to Turkey, 10%-20% to Egypt and Morocco and 10%-20% to Spain, Italy and Greece.

CB: Positive and negative impacts

Central Bank officials told “SW” that the fluctuations of the exchange rate have both positive and negative impacts, affecting competitiveness and tourism on the one hand, and inflationary pressures on the other.

Same sources revealed that the high exchange rate of the Cyprus pound affects not only the tourist arrivals in Cyprus but also the other Mediterranean destinations.