Terrifying scenarios on tourism
Terrifying scenarios on tourism
5/12/2008 15:04
Talks in Parliament focused on the possible decline in tourist arrivals by 15% or even 25% on Friday, boosting concerns on the course of the island’s economy in 2009. The tourist factors talk about a shrinkage of the industry and demand additional measures to support the second biggest sector of economy. The CTO admits that the British cancellations make the targets for the winter tourism unfeasible, while the opposition said that the announcement of the additional item of €12 million by the government is an accounting trick.

Speaking before the House Commerce Committee, which examined the course of tourism, DISY MP, Lefteris Christoforou said that they way that the government announced support measures of €12 million is an accounting trick since the sum was previously cut by the CTO budget (€110 million).

Mr. Christoforou also expressed his concerns on the fact that there is no coordination committee to deal with issues that have to do with the tourist product in an effort to stop the impacts of the crisis.

CTO Chairman, Panos Egglezos, on the other hand, referred to the Organization’s effort to attract new markets with the opening of new embassies, the simplification of the visa procedures for the non-Europeans and the strengthening of Cyprus’s advertising campaigns and its promotion to new markets.

Within the framework of the extraordinary strategic plan, the CTO will have a meeting with Cyprus Airways and Eurocypria next week to see which destinations can the two airlines cover so as to propose to other airlines to cover the gap that will emerge. As for winter tourism, Mr. Egglezos expressed his doubt on whether the target of 60 thousand in 2009 can be achieved.

Meanwhile, PASYXE Chairman, Haris Loizides stated that the government’s measures are insufficient and no-one will be exempted from the repercussions of the world economic crisis.

Mr. Loizides clarified that the hotel industry cannot be burdened the cost of the crisis and the pressures exercised by the tourist agents for the cut of the hotel prices. “The measures must be taken immediately because in two months it will be too late to reverse the negative course of tourism. Among the measures that PASYXE recommended is the VAT cut for the tourist businesses from 8% to 5% during the crisis. Other measures are the reduction of the airport duties, the granting of urban planning incentives to the hoteliers and the inclusion of the tourist industry in EAC’s tariffs.

Chairman of Travel Agents Association, Victor Mantovanis referred to a drop of 15-25% in the new summer season. “The biggest tour operator announced a drop of 25% in the tourist product to Cyprus”, he stressed.

AKEL MP, Stavros Evagorou said that the drop in the CTO budget by €12 million is attributable to a policy adopted by all governments. “The government is ready to deal with the crisis and if needed to add €100 million for the enforcement of its development projects”, he said.

EDEK MP, Giorgos Varnava said that the question is how the CTO disposes the sums to attract new tourists.

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