AC Nielsen data for British reservations in Cyprus are fairly depressing for this summer season. According to StockWatch sources, the total number of reservations for June 2004 dropped 30% compared to the corresponding period of 2003. As a result, total reservations for Cyprus in January – June 2004 recorded a drop of 13%. In the British market, 10% less tourist packages were sold for June, and 8% less for January – June 2004.

Reservations drop

Latest figures for Cyprus have showed that May and April reservations for the summer season dropped 18% and 14% respectively.

This trend was an issue of great concern since early 2004. Its impacts on the effectiveness of the tourist sector for the island’s economy, however, cannot be calculated at the current stage, permanent secretary of the Tourist Agents Association, Thasos Katsourides said. “I do not believe that the latest figures are reliable for the future prospects of the tourist arrivals in Cyprus”, he noted.

Cheaper destinations

Latest data have showed that several cheap tourist destinations have boosted their position in the sector. Specifically, reservations for Turkey and Egypt in June 2004 increased by 4% and 80% respectively. On the other hand, reservations for Greece, Spain and Italy recorded a drop of 26%, 17% and 65 respectively.

For January – June 2004, total reservations for the summer season in Egypt soared 180% and in Turkey by 9%. British reservations in Italy declined by 2%, in Greece by 19% and in Spain by 20%.

Finance Ministry: We keep up with the developments

On the question whether the prospects of tourism back up the Convergence Program, which is based on the condition that the growth rate will reach 3.5% this year, a Finance Ministry representative told StockWatch that the Ministry keeps up with the developments on the Cyprus economy and will examine alternative measures of fiscal policy if this is deemed necessary.