The Mayor of Ayia Napa, Giannis Karousou:
The drop in tourist arrivals from Russia is now confirmed. The most recent estimates speak of a reduction of more than 32% of this market, while the reduction of other countries of origin, ranging from -2 to -7%, appears smaller. This development is certainly not a thunderbolt, as both external factors and domestic weaknesses make tourism in Cyprus less competitive.
Equally important to consider is the so-called "spending", especially per Russian tourist. As the hoteliers and agents themselves confirm, this is constantly decreasing, draining the income from tourism.
As for the external factors, which I initially noted, one could not ignore the dynamic openings of Turkey and Egypt to the international tourism market. With their national currencies offering significantly cheaper prices to tourists, these two countries seem to be going through a "tourist spring". Hundreds of thousands of visitors this year choose one of these two countries as a summer destination.
All of the above should be just the starting point of our thinking, followed by taking specific initiatives to address the phenomenon. Unfortunately, instead, in public discourse we are still debating whether or not the reduction in arrivals is real.
For my part, I will choose not to dwell on the self-evidence, which the data of the experts show. I choose to contribute in a concrete and tangible way, proposals for the opposition of this downward course, by first defending the number of seats and flights to Cyprus. But at the same time, travel agents need to be motivated to fill these flights. Especially for the Russian market, if there is no guarantee of the number of seats (and not just the flights) the result for next year can be disastrous.
At the same time, all parties involved in tourism (state, business, institutions) must work methodically to reverse this dangerous development. Initially, hoteliers themselves will have to adjust their prices - which is already the case - in order to provide competitive services. The number of beds has increased and there are many players in the market. So not much is left at this level for the supply and demand rule to work properly.
At the same time, it is necessary to give financial incentives to travel agents in Russia, but also in other countries. A relevant forecast was in force until May and concerned winter tourism, with its results being considered very positive. So even with a lower subsidy, if appropriate, the measure should be extended to the summer months.
Incentives, however, should also be provided by the airports themselves, with the aim of maintaining flights and seats from abroad. There is no one active in the tourism industry who does not know how difficult it is for an airline to return if it is cut. If such developments are not prevented, the consequences will follow us not only for 2019, but also for the coming years.
The Ministry of Tourism, or the CTO, must at the same time fulfill the purpose of their existence. Promoting our tourism product with "smart campaigns" at European and international level, are certainly part of their responsibilities. It is necessary to highlight the natural and cultural heritage of Cyprus. It is equally necessary to promote the unique elements of our place, such as the fact that we have 3 of the best beaches in Europe and one of the best in the world. In the same context of their responsibilities, they should prepare an contingency plan which will be activated when the plans for our tourism product are out of target. Such a plan, with the release of the corresponding funds for specific actions, can only be the roadmap for any such case in the future.
Our goal, at national level, must be to secure our tourism product. For this to happen, however, we must rely more on our strengths (ie the competitiveness of our product) and less on geopolitical developments.
In previous years it "rained" tourists. The next ones, like this year, will definitely not be like 2016 and 2017. So everyone should understand that tourism is a national priority, before it is too late. The time has come to dare innovative and effective methods that will bring Cypriot tourism to the place it deserves.
Giannis Karousos
Mayor of Ayia Napa