The rejection of the Annan Plan on the 24th April referendum has put the G/C tourist industry at a disadvantage, former Commerce, Industry and Tourism Minister, Nicos Rolandis said on Tuesday. On his statements to StockWatch, Mr. Rolandis said that the negative condition in which the Cyprus hotel industry has fallen after the ‘no vote’ is attributable to the following factors:

- The non-adoption of the Annan Plan allows the T/C hoteliers to be more competitive in relation to the G/C, since they have no capital cost for the hotels in the occupied territories. The adoption of the Annan Plan would enforce the T/C hoteliers to buy their hotel from the Property Council.
- With the non Cyprus settlement, the economic gap between the two communities remains. The labour cost for the T/C hotel industry is therefore lower. The adoption of the UN peace plan would allow a better operation between the two communities and would contribute to the increase in the T/C labour and operation cost.
- The EU and US stance has created a psychological climate that favours the T/C side. This is positive for the T/C companies and their cooperation with European companies.

On the question whether he agrees with the present Commerce Minister, Giorgos Lillikas that the adoption of the Annan Plan and the lack of a federal tourism organization would threaten the G/C tourist industry, Mr. Rolandis said that the Annan Plan provided many opportunities for cooperation with the T/C in the tourist sector. There are many federal states that have not necessarily a federal tourism organization. Belgium, for example, has more than one organization, Mr. Rolandis concluded.