According to CYSTAT data released on Monday, tourist revenues for September shed 15% or £23 million to £134 million (2002: £157mln) belying expectations for a gradual recovery of the Cyprus tourist industry.

For January-September, tourist revenues recorded a drop of 10.5% or £96 million compared to -9.6% in August.

For August 2003, tourist arrivals and revenues increased by 7.8% and 7.5% respectively, creating expectations that tourist industry has entered a recovery stage.

PASYXE: August was an exceptional case

Pancyprian Hoteliers Association (PASYXE) Chairman, Haris Loizides told StockWatch on Monday that the latest CYSTAT figures confirm its forecasts for the irreversible downward trend in tourist arrivals.

“The August figures were exceptional for the Cyprus tourism, due to the comparatively reduced tourist arrivals in August 2002 and the mass arrivals of the UK-based Cypriots, who stayed in self-owned houses”, Mr. Loizides noted.

As regards to the full year 2003, PASYXE anticipates that tourist arrivals will drop 5-10%, while the Finance Ministry in the Pre-Accession Economic Program estimates that tourist arrivals and revenues will decline by 5% and 10% respectively by the end of the year.

Tourism is one fifth of the Cyprus economy. In 2002, the hotel and restaurant sector was at 8.7% of the GDP against 9.7% in 2001.