"One way to unite the Municipality of Ayia Napa, Sotira and the community of Liopetri"
Guarantee for the future the creation of a strong new municipality, according to a documented study by the trusted company Ernst & Young Cyprus, says the Municipality of Ayia Napa
An in-depth multi-page study of the prestigious technocratic house Ernst & Young Cyprus documents with a positive sign the proposal of Ayia Napa for unification with the Municipality of Sotira and the community of Liopetri, according to a press release of the Municipality of Ayia Napa.
As mentioned, according to the study of the well-known house Ernst & Young Cyprus that was done on behalf of the Municipality of Ayia Napa, the parameters and the path that the Municipality of Ayia Napa must follow that will help ensure the name that the city built all these years and led her to create a strong brand name.
At the same time, answers are given regarding the reform promoted by the Government in the context of local self-government and how it leads the Municipality of Ayia Napa to its decision to merge with the Municipality of Sotiras and the community of Liopetri.
The Municipality of Ayia Napa, guided by the National Strategy for Tourism, which was prepared in 2017 by the Ministry of Energy, Trade, Industry and Tourism, which set the goal that Ayia Napa by 2030 should, according to the announcement, be among in the three best tourist destinations in Europe by 2030, called for the implementation of this study following the Government's proposal for local government reform that provides, inter alia, a merger of Municipalities-Communities.
In general, according to the Press Release of the Municipality of Ayia Napa, the study indicates that the choice of merger with the Municipality of Sotiras and the community of Liopetri allows Ayia Napa to effectively deal with the forthcoming changes. First of all, merging at both operational and administrative level poses great challenges. Specifically, the new Municipality that will be created will be called upon to face various operational challenges.
Ayia Napa's ineffective response to operational and administrative challenges that may arise may pose risks which, if not addressed in a timely manner, may lead to adverse outcomes.
Dangers and challenges
The downgrading of the business capacity of the new entity, which will negatively affect the quality of services provided to citizens and visitors. As mentioned above at present, the active population (consisting of citizens and visitors) of the Municipality of Ayia Napa is estimated at about 40.000 inhabitants, while during the peak period, the active population amounts to about 60.000
The negative impact on the quality of services provided to visitors (tourists) is likely to degrade the tourism product. This event will have a negative impact on the reputation (brand name) of Ayia Napa as a reliable tourist destination. It will also negatively affect the National Tourism Strategy set as a goal for Ayia Napa to be among the three (3) best tourist destinations in Europe by 2030.
Possible downgrade of Ayia Napa's tourism product will negatively affect tourism revenues, currently estimated at € 800m. It will also negatively affect the prospects for a significant increase in tourism revenues by 2030. As mentioned above according to According to the National Tourism Strategy, the number of foreign visitors will increase by 66% (or 300.000 visitors) from 2015 to 2030, which is also expected to lead to a significant increase in tourism revenue.
The possible negative effects of the possible downgrade of the tourism product will also affect the prospects for investments from the private sector, which relate to the construction of new and upgraded existing hotel units and tourist accommodation and the creation of infrastructure for the further upgrading of the tourism product.
Defining the methodology for prioritizing the needs of the new entity, which will also determine the selection of utility projects to be carried out. In the case of Ayia Napa, the priorities are set on the basis of achieving the national goal of promoting it among the three best tourist destinations in Europe by 2030. Based on this goal, projects worth € 50m are planned to be implemented. by 2022, including projects related to the upgrading of existing and the creation of new theme parks, the upgrading of cultural infrastructure and historical monuments, the redevelopment of the road network and the redevelopment of the coastal front. If the new entity does not define the criteria that will preserve that similar projects will be implemented after 2022, the national target may be adversely affected as mentioned above as the appropriate infrastructure will not be created which will contribute to the upgrading of the tourism product. .
Ayia Napa's representation in the new entity may not be representative based on its contribution to the country's GDP and active population. Non-representative representation is likely to lead to negative results in future decisions for the development of the wider region.
The positive signs of union
The Municipality of Ayia Napa, after evaluating the study, proceeded with the suggestion that Ayia Napa be merged with the Municipality of Sotiras and the Community of Liopetri because:
The Ayia Napa brand name will be maintained and strengthened due to the growth prospects, which are analyzed by the documented study of Ernst & Young Cyprus.
The development prospects of the merged entities are excellent mainly in terms of tourism since the merged entities have a single coastal front which with the appropriate infrastructure projects, but also investments from the private sector can be developed and contribute to the upgrading of the tourism product. This development will bring significant economic benefits to the merging entities.
Achieving the goals of the reform offer the possibility of transferring new responsibilities to the new entities that will emerge which will result in better and faster service to citizens for critical services currently offered by the Central State.
Effective addressing of business and administrative challenges as analyzed in the study: Due to the know-how of the Municipality of Ayia Napa through the provision of services to 40.000 active population will help other entities to upgrade their services to citizens. The Municipality of Ayia Napa also has know-how for the preparation of proposals concerning complex infrastructure projects and have the possibility to be financed from European funds. This event will contribute to the preparation of proposals and the raising of European funds for the new entity, a fact that will give impetus to the development of the region. In addition, the representation of Ayia Napa, although it will not be representative of its contribution to the consolidated budget of the new entity and its active population, will be significant, as it will hold at least 35% of the seats in the new Municipal Council.