According to CYSTAT data released on Monday, tourist revenues for 2003 have recorded a drop of 10.4% or £117 million compared to 2002, making 2003 one of the worst years in the history of Cyprus’ tourism.
The shrinkage of the tourist revenues has raised the total losses since 2001 to 20% or £257 million, while it is the first time since 1980 that the island’s tourist industry shrinks for the second consecutive year.
15% of GDP
According to CYSTAT, tourist revenues in 2003 stood at £1,015 million (2002: £1,132mln), dropping to 15% of the Cyprus GDP. In 2001, tourism was 22% of the GDP.
The shrinkage in revenues for 2003 is fully in line with the forecasts of the Finance Ministry and is almost double the corresponding drop in arrivals (4.8%). Tourist arrivals for 2003 reached 2.3 million against 2.4 million in 2002.
Tourist revenues for December have showed a decline of 8% from £36mln to £33mln, despite an increase of 8% in tourist arrivals.
PASYXE: Latest data confirm our estimates
“The latest data confirm our estimates that the drop in revenues would be larger than that in tourist arrivals. We have to be on alert to solve the problems of the tourist industry”, PASYXE General Manager, Zacharias Ioannides told StockWatch.
With regard to seasonability, Mr. Ioannides said that Cyprus must enter the peak period of reservations so that the tourist industry recovers.
Forecasts for 2003
The Finance Ministry and the CTO estimate that tourist industry for 2004 will slightly recover, with tourist arrivals increasing by 5%. It is estimated that in 2006 Cyprus will return to the levels recorded in 2000-2001.
As far as the tourist revenues are concerned, the competent authorities anticipate that they will show an increase of 7% in 2004.
Hoteliers, on the other hand, see these forecasts with skepticism: “We are not aware where these estimates are based upon. So far, there is no sign of recovery for the tourist arrivals”, Mr. Ioannides noted.
The shrinkage of the tourist revenues has raised the total losses since 2001 to 20% or £257 million, while it is the first time since 1980 that the island’s tourist industry shrinks for the second consecutive year.
15% of GDP
According to CYSTAT, tourist revenues in 2003 stood at £1,015 million (2002: £1,132mln), dropping to 15% of the Cyprus GDP. In 2001, tourism was 22% of the GDP.
The shrinkage in revenues for 2003 is fully in line with the forecasts of the Finance Ministry and is almost double the corresponding drop in arrivals (4.8%). Tourist arrivals for 2003 reached 2.3 million against 2.4 million in 2002.
Tourist revenues for December have showed a decline of 8% from £36mln to £33mln, despite an increase of 8% in tourist arrivals.
PASYXE: Latest data confirm our estimates
“The latest data confirm our estimates that the drop in revenues would be larger than that in tourist arrivals. We have to be on alert to solve the problems of the tourist industry”, PASYXE General Manager, Zacharias Ioannides told StockWatch.
With regard to seasonability, Mr. Ioannides said that Cyprus must enter the peak period of reservations so that the tourist industry recovers.
Forecasts for 2003
The Finance Ministry and the CTO estimate that tourist industry for 2004 will slightly recover, with tourist arrivals increasing by 5%. It is estimated that in 2006 Cyprus will return to the levels recorded in 2000-2001.
As far as the tourist revenues are concerned, the competent authorities anticipate that they will show an increase of 7% in 2004.
Hoteliers, on the other hand, see these forecasts with skepticism: “We are not aware where these estimates are based upon. So far, there is no sign of recovery for the tourist arrivals”, Mr. Ioannides noted.
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