One in four hotels in the country estimates that the country's tourism will resume in July, according to a survey conducted by EV. However, a feature of the uncertainty is the fact that more than half of the survey participants stated that they are considering in their options the scenarios either not to open at all or only to open a small number of units in 2020. Most hoteliers are working out cost reduction scenarios, while the majority are considering layoffs.
Already, more than 70% of respondents have suspended all marketing campaigns, while about 30% of respondents have already frozen or delayed payments to suppliers until the uncertainty is removed.
The vast majority of participants expect an overall reduction of at least 50% of revenue for 2020 compared to 2019. They also predict a reduction of more than 50% in the average fullness of the year compared to the previous year.
Hoteliers unanimously state that all bookings until the end of May 2020 were either canceled or postponed. They also report that bookings for June 2020 are currently low and may also be canceled.
The majority of participants estimate that there is a significant risk of losing the rest of the season. Only 25% of participants say they are optimistic about the resumption of activities in July 2020.
At the same time, the hotels state that they will turn to domestic tourism and are considering the possibility of reducing prices by up to 30%. They also estimate that the recovery will occur in 2022.
Evaluation of government measures:
. Participants say they are neutral on government support measures, awaiting further action and clarification.
. Half of the participants state that they were not positive about the state financial support channeled through the Cypriot banks, as they believe that the banks will be slow to release the funds due to bureaucratic procedures.
. Some participants expressed the position that they are still considering their participation in the workforce support programs, as they believe that there are still gray areas that need to be resolved.
. Some participants emphasize that the Government should invest more in promoting Cyprus as a tourist destination and strengthening communication with key market players.
. The reduction of VAT and the postponement of payments was considered positive.
Measures to be further taken into consideration:
. Increased efforts to promote our tourism product and build trust in the market. Targeted campaigns are suggested to both individual holidaymakers and travel agents.
► Employment support measures. In addition to grants, there should be plans aimed at maintaining employment even in flexible / part-time employment.
. Attracting the domestic tourist by introducing packages addressed to them, subsidized by the Government where possible.
Φο More tax incentives and other forms of government support: extension / increase of VAT reductions, tax incentives / grants for infrastructure upgrades / extensions (and for technological / digital upgrades), direct support for a company's liquidity through specific tax channels, funding channels / charges of the Municipalities, further postponement of the payments of the Social Insurance.
Source: philenews