Famagusta District: Economic disaster in tourism sectors

Car rentals, taxis, water sports and small and medium-sized businesses in Ayia Napa and Protaras are in danger of extinction

1 InraW7S.original Coronavirus, exclusive, stores

By Marinos Pavlikas *

As summer draws to a close and a fortnight before the start of autumn, the pandemic has left its mark on Cypriot tourism for the worst time in four decades. The unfortunate absence of tourists during this year's tourist season has finally happened, with businessmen and industry workers sounding the alarm bell, not only for the prevailing situation, but also for how they and the people will manage to survive. their families financially next winter.

The situation in hotels is dramatic. Despite the hopes of hoteliers at the beginning of the tourist season, for a possible positive categorization of the United Kingdom, or even inclusion in the categorizations of Russia, the developments and the continuous fluctuation of the cases have thrown in the freezer the attraction of tourism. Ayia Napa and Protaras have suffered the most damage, as these two tourist resorts are 90% dependent on foreign tourism. Hundreds of thousands of tourists were on vacation throughout the summer, while only last summer, the reports on tourism during such a period, spoke of overcrowding and the need to increase the number of beds, but also more and better infrastructure for tourism.

In the province of Famagusta, at this time, according to the President of the local PASYXE, Doros Takka, only 30% of the hotel units remain open. The picture, of course, becomes more tragic when faced with large and important hotel units, which remain closed in 2020, due to the non-attraction of their traditional markets, while the picture on weekends does not look like the picture on other days of the week, since, now, this year, "injection" in the economy of the region is offered almost exclusively by the local tourism.

According to the President of PASYXE Famagusta, the first ten days of August moved, approximately, like July, with occupancy during the week ranging from 25-30% and on weekends to 60%, while during the leave period of August 35 it is estimated that occupancy will increase to 40-60% and on weekends about XNUMX%.

Branches with extinction are in danger

The effects of the pandemic have affected certain industries, which are mostly dependent on foreign tourists. Taxi services, water sports, car rentals and much of the catering and leisure centers as well as gift and clothing stores are facing huge financial problems due to the small number of customers, while many businesses remain closed.

Perhaps the biggest hit has been the car rental sector, which operates only with the support of foreign tourists. As Nikos Stylianou, president of the Association of Car Rental Professionals (ENEMOTO POVEK Famagusta), told "S", the situation is tragic with more than half of the businessmen being open, almost all of whom work without staff, as they can not they do not even make a living. He stressed that the operating costs and the cost of renting the main boulevards of the tourist areas in some cases exceed two thousand euros per month, while the daily income is very little to non-existent. As he mentioned, an important problem facing the industry is the issue of the vehicle insurance period, which amounts to five months, with the result that many of the entrepreneurs rent only a small number of vehicles this year, in order to reduce costs. their. On the other hand, he appealed to both the insurance companies and the Government to support the industry.

The water sports sector also has a big problem. According to the President of the Pancyprian Association of Water Sports - Recreation Owners, more than three hundred families of water sports owners and employees are at risk of losing their jobs forever, as almost all entrepreneurs this year work without a hire. The issue has prompted members of the association last week to go outside the Ministries of Finance and Interior, demanding a reduction in VAT, a refund of the Fuel Consumption Tax and protesting against the issue of beach management and in particular the prevailing anarchy and for " the apparent implementation of a policy by Municipal and Community Authorities ”.

Struggle for the rescue of small and medium-sized businesses

On the 28th of last July, the representatives of the small and medium enterprises of the province of Famagusta sent a resolution to the President of the Republic on the rescue of small and medium enterprises in the tourist areas of the province. The resolution states, among other things, that the Associations of Shopkeepers of Ayia Napa and Protaras, ENEMOTO of Famagusta, Owners of Medium Water Sports of Famagusta, in cooperation with the associations of PASIKA Famagusta and SIKA Famagusta, took part in the race . This decision, it is reported, led to the vertical decline of tourism, on which the tourist areas of Ayia Napa and Protaras depend entirely, in combination with the huge operating costs, with rents occupying the first place, while warning that most small and medium enterprises lead, with mathematical precision, to bankruptcy and final closure.

Among other things, the requested measures are to declare Ayia Napa and Protaras as affected areas, reduce rents by law, suspend evictions for three years to give businesses time to reorganize, and provide a comprehensive support package, and rescue of small and medium-sized enterprises in tourist areas.

The resolution is signed by Nikos Stamatis, Secretary General of the General Assembly. POVEK Larnaca-Famagusta, Maria Chatzichristou, President Association of Shopkeepers Ayia Napa, Lefteris skull, Representative Association Shopkeepers Protaras Stylianou Nicos, President Association ENEMOTO Famagusta Evangelos Kyriacou, Association Media Water Sports Famagusta, Harry Alexander, President PASIKA Famagusta and Vassos vinegar, President of SIKA Famagusta.

*The article was published in the newspaper "Simerini" (15/8/2020)