02/07/2024 16:17
President Nikos Christodoulides announced a €10 million increase in the 2025 budget for the Deputy Ministry of Tourism, aimed at promoting Cyprus internationally. Speaking at the General Assembly of the Cyprus Hotel Association (CHA), the President also unveiled a five-year plan designed to mitigate seasonality in the tourism sector.
Addressing the challenges faced by the hotel industry, including geopolitical instability in the Middle East, the ongoing war in Ukraine, economic recessions in major European economies, and the crisis in the aviation sector, President Christodoulides expressed confidence in the industry's resilience. He assured that the government was continuously monitoring developments affecting the sector and is attentive to the concerns expressed by industry stakeholders.
The President emphasized the completion of a long-term five-year plan, to train workers in partially or fully suspended hotel units. This initiative aims to increase the number of year-round operating hotels, thus creating more stable jobs and extending the tourist season.
In his address, President Christodoulides highlighted the country's tourism sector will benefit from a rebranding campaign aimed at restoring Cyprus' international reputation and credibility.
He also underscored the positive prospects stemming from the establishment of a Strategic Dialogue between Cyprus and the United States, which places Cyprus in a category of 30 countries maintaining regular and structured cooperation with the US. This dialogue, as he said, which extends beyond energy and trade, also offers promising collaboration opportunities in tourism.
"An airline representative from the US is currently in Cyprus discussing direct flights. While I cannot disclose more details at this stage, this effort is ongoing," the President revealed.
President Christodoulides mentioned his recent visit to Poland, a significant tourism market for Cyprus, and announced the opening of a Diplomatic Mission in Kazakhstan in 2024, aiming to attract tourists from the region. A diplomatic mission in Armenia is also set to be established in 2024.
HORTEC conference in Cyprus ahead of Cypriot Presidency
Alexandros Vassilikos, President of the European Association of Hotels, Restaurants, Bars, and Cafés (HORTEC) and the Hellenic Chamber of Hotels, highlighted the critical discussions at the European level concerning the future of tourism.
Vassilikos announced that HORTEC's General Assembly will take place in Cyprus in October 2025, bringing national organiσations and European officials to the island.
“This presents an excellent opportunity to lay the groundwork for tourism policy during Cyprus's EU Presidency,” he said.
Hoteliers President says that 2023 was not a successful year
In his address, CHA President Thanos Michaelides said that 2023 cannot be deemed a successful year based on hotel profitability. Despite good revenue performances, profitability was lower due to increased operational costs from energy prices, labour, and supplies. High borrowing levels in the hotel industry, coupled with rising interest rates, further impacted profitability.
Michaelides pointed to the challenges for 2024, predicting lower annual occupancy rates compared to 2023. He referred to the Middle East crisis, the war in Ukraine, the UK economic slowdown, and reduced flights to Cyprus as significant concerns. The bankruptcy of Germany's third-largest tour operator, causing an estimated €25 million loss to Cypriot tourism, was also highlighted.
Finally, he stressed the urgent need for a roadmap to implement actions that will modernise Cyprus's tourism product.