The upgrading of the Cyprus tourist product needs a generous contribution by the state, Chairman of the Hoteliers’ Association PASYXE, Haris Loizides said on Wednesday, speaking at a CyBC program.

“In Greece, hoteliers were granted subsidies for the upgrading of their hotel units. Tourist product will be upgraded only with a substantial economic subsidy. There must be incentives for the development of the conference and sports tourism, while hoteliers currently proceed to investments of millions of pounds to support the industry”, Mr. Loizides noted.

Commenting on the new CTO Strategic Plan for the withdrawal of the existing old hotel units and the construction of new, Mr. Loizides said that although certain old hotel units do not satisfy the needs of the foreign visitors, their withdrawal requires incentives.

‘There has been a delay, however, in the announcement of withdrawal measures, since we are already in the winter period and most hotels have already started their renovations ahead of the summer season”, he added.

Mr. Loizides expressed his concern on the prospects of the Cyprus tourist industry for 2004 – according to first indications the results will be “slightly better” and will not be a “year of recovery” as expected – and expressed his reservations for the tourist revenues reported in the Strategic Plan (£2.4 billion until 2010).