Moderate optimism that things in Cyprus' tourism will improve due to the decision by the US and Britain to return Cyprus to the lowest level of travel guidance (level 1), was expressed by the President of the Cyprus Tourism Enterprises Association (STEK), Akis Vavlitis, stating that in the next two to three weeks it will become clear how this development will affect.
In statements to CNA, the President of STEK said that this development has pleased the tourism industry and added that "it will be seen in two to three weeks how positively this change in travel guidelines has affected it."
He mentioned that in addition to Great Britain being our largest market, this development is purely a psychological issue for both European countries and Middle Eastern countries.
"There is a moderate optimism that things will improve due to the US and UK decision, but it will be seen in the next two to three weeks how positively it will affect," he said.
If booking flows increase, it means that this was a factor affecting bookings, he added.
Regarding Great Britain, Mr. Vavlitis said that "we have been saying for years that we are wrong to rely only on one market" and ways must be found to differentiate the situation.
He noted that the first tourist market for Cyprus, which is Britain, has a huge difference from the second, which is Israel.
He mentioned that in the past, before the war in Ukraine, we had the counterweight of the Russian market and added that "in recent years, normality has been the exception, meaning crises come more often and are unpredictable and larger."
Mr. Vavlitis said that in a proposal he made to the authorities and the Former Republic, based on a study by a large international firm, the next major tourism market will be India.
"It's not an easy task as you have to find the product that the Indian tourist wants and make deals," he said, adding that "we have to find a way not to rely on just one market."
In relation to the start of the year in tourist arrivals, Mr. Vavlitis said that the year began with positive developments in January and February and all reservations for the entire tourist year were increased compared to last year's tourist year.
He added, however, that the events surrounding the war in Iran overturned all reservations and predictions.
"Today the booking situation has improved, meaning more bookings are coming in than they were a month ago," he added.
However, the President of STEK said that "no one knows with the current data how this year will end and how many losses we will have in revenue for both hotel units and the economy in general."
He mentioned that several reductions have been given to tour operators and this is affecting the profitability of businesses.
Increased costs, contact with banks, salary increases
Furthermore, Mr. Vavlitis told CNA that hotel businesses have increased costs due to increases in energy prices and the supply chain in general, as well as increases in workforce salaries that were provided for by collective agreements in April.
"To her credit, the entire hotel industry has given the increases without even thinking about asking the unions or the state to postpone the increases" due to the developments, she added.
He also said that STEK has been in contact at the highest level with commercial banks and with the President of the Association of Commercial Banks "and we have their full support."
"For all businesses that have been consistent with the banks to date, we will have the support of the major banks in whatever the industry needs," he added.
He said that this gives the industry optimism that "there is at least some support from the banks, just as there was support from the state, even if only in April, and we expect to see what will happen in May and June."
Mr. Vavlitis said that despite the fact that costs have increased, accommodation price reductions have been given and added that his position, which he conveyed to the President of the Republic and to competent Ministers, is that fear - if this is the reason for the reduced reservations - "does not change because you will reduce the prices."
He noted that developments have also begun to affect the economies of the countries of origin of our tourism, such as Germany and England, while inflation has increased and interest rate increases are expected.
Furthermore, he mentioned that travel in general is no longer a luxury in recent years but a way of life and this helps the tourism industry recover relatively quickly from crises.
Reduction of staff from abroad
Mr. Vavlitis said that several hotel units have not brought in additional staff from abroad despite the approval they had from the Ministry of Labor, adding that there is interest from staff working abroad to work in Cyprus.
Source: KYPE
