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News Headlines - December 2007
 

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Cyprus Tourism on the Decline

Tourism in Cyprus is a vital force to its economy and the CTO are under pressure to recognise that their main economy needs serious addressing to stay alive. With a sense of urgency now prevailing, CTO Director Phoebe Katsouri states "it is essential that we move forward in a positive direction to meet targets."

In October arrivals fell by 2.8% compared to the same month last year, with 275,103 arriving compared to 283,046 in October 2006. Competitors are making huge investments in tourist infrastructure compared to Cyprus. During a workshop in Nicosia, Katsouri addressed key members of the tourist industry communicating a revised strategy in tourism development with a scope of implementations until 2010.

Hoteliers are being driven out of business due to the industry's decline, with plans to convert their premises into apartment blocks for long-term rents or sale. With an increase in availability in this type of accommodation, rents and sale prices will be highly competitive and result in less holiday accommodation to attract tourists. Chloe Ryan, an ex-patriate in Cyprus for six years says; "I first rented my apartment in 1994 when my rent was £375 per month on a long-term annual contract. After two years I noticed an increase in available accommodation to rent and sourced a comparable apartment for less. When I spoke to my Landlady, she insisted I stayed and immediately reduced my rent to £300. She informed me that to have a regular amount each month from a reliable tenant offered security and peace-of-mind." Ryan's case is one of many, with more and more properties available to rent, long-term rental rates are being slashed.

Zacharias Ioannides of the Cyprus Hotel Association claims that in dozens of smaller hotels and hotel apartments, the total of beds has reduced from 98,000 to 93,000 due to a change in status. Tourism is declining at a rapid rate in Cyprus due to a greater choice in other destinations, a delay in plans for the new Marina and golf courses, slow renovation in hotels and cultural centres, hotel closures, no rubbish clearance plans, to name a few. A staggering 42% of holiday accommodation owners are complaining of low occupancy and staff cuts as a result and are now looking to invest in property ownership development.

The CTO has claimed to proceed with plans to allow conversion of holiday accommodation representing 20,000 beds to apartment blocks. The plan is to allow for holiday home ownership investment. Hoteliers will be given incentives to upgrade and refurbish their establishments with a sum of 13 million euros being allocated. Panos Englezos, CTO Chairman says "an effort from all parties concerned is imperative to make a difference on a large scale." The reality is that the CTO has always made an attempt to increase tourism through corporate planning and lengthy discussion, alas pro-active action has been slow, if at all. What point is there having a great restaurant with an inexperienced Chef? Or for that matter a highly skilled team of Directors with no workforce or mentality to implement plans. The best domestic products will remain on the supermarket shelf if they are not promoted for sale. We are not dealing with rocket science, create your strategy and see it through to the bitter end, planning for interventions and resolution contingency.

Cyprus tourism officials are evading some of the real issues. No strategy plans are in place to clear the rubbish that litters beaches causing danger and disgrace. Major refurbishment programmes are taking place during seasonal highs with the Paphos Harbour looking like a building site preventing tourists from strolling. The increasing sight of building works, dumped washing machines, sofas, domestic refuse, and even broken-down vehicles is simply not attractive to tourists or ex-pats who feed the Cypriot economical growth.

Taxis are in abundance in Cyprus but costs are still high with charges from Larnaca airport to Paphos often being higher than a last minute flight booking from the UK. Complaints have been reported from visitors who describe beaches and certain areas as an eyesore with rubbish dumps destroying attractive scenery. Most visitors now stay in their holiday accommodation with little interest to venture out to see the Cyprus image portrayed in their glossy holiday brochure, feeling deceived. With an unmotivated team of staff who now service the tourist industry in restaurants, hospitality has reduced, with increasing complaints that foreign staff are unfamiliar with Cyprus displaying no knowledge of the Island or prime tourist attractions of ancient ruins and monuments.

Lefkos Phylactides, head of CTO tourist services predicts that 2007 would end with a 1% increase in arrivals from the UK, reaching 2.5 million with tourism generating a revenue base of CYP1 billion, representing a 7% increase over last year. The new revised plan aims for 1.4m tourists from the UK in 2010, assuming the plans will be implemented or will stay at infantile at discussion point. A suggestion of the new plan is to elect a Ministerial Committee who will meet every six months to assess progress and aim to cut all the red tape that halts Cyprus from development and progression. The public remain sceptical and only time will see results.
 

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