Dire consequences for local industry unless we form an action plan
CYPRUS can not currently compete on price in the tourism sector and even if numbers go up, revenue will continue to decline, CTO Director of Tourism Lefkos Phylactides said yesterday.
Phylactides, who was addressing an international conference on tourism organised by the Hoteliers Association (PASYXE), said that since 2001 tourism had dropped 12.5 per cent and revenue 23 per cent.
Conference participants included Martin Brackenbury, president of the International Federation of Tour Operators, David Schelp of German operator TUI, and Richard Simmons from the British Olympics Association.
“Cyprus can not compete on price,” Phylactides told delegates. “Through market support we can achieve modest growth in numbers, but tourism revenues will continue to decline.”
Phylactides said negative trend that would affect the Cyprus market in 2005 were prices, the uncertainty of the flight schedules of Cyprus Airways and the slow response of local authorities and the private sector to the strategic plan for tourism, which the CTO began implementing 15 months ago. External factors this year, he said was the political situation in the Middle East regarding Syria.
Phylactides said the only way out was “commitment to improving the product, competitiveness, value and quality” of the Cyprus tourist product. He forecast an increase around five per cent in arrivals for 2005.
Brackenbury forecast a five per cent overall increase in global tourism for 2005 as external shocks to the industry such as September 11, fade and air traffic rebounds and consumer confidence returns.
He said the biggest problem facing Cyprus tourism was lack of competitiveness but also the “speed of response” to the changing face global tourism trends. Brackenbury said Cyprus needed to re-affirm its strategic goals and improve price issues. It should also focus on standard of accommodation, food quality, entertainment, excursions and more diversification of the product. Carrying out research on consumer perceptions would also be useful, he said.
PASYXE chairman Haris Loizides said the downturn of tourism in the last three years had driven the hotel industry into “major difficulties and dilemmas”.
“The first signs for the current year, especially in terms of the declining income from tourism in January 2005 and the drop in bookings from the UK,” he said.
Tourism Minster George Lillikas, who also addressed the conference stressed the importance of hospitality, and the hotels` role in the overall tourist experience.
He said nowadays tourists were better informed, had access to comparative destinations and had changing requirements.
“We have to safeguard and strengthen the hospitality and warmth that Cyprus is famous for,” said Lillikas.
Lillikas did warn the private sector that it was lagging behind in the implementation of part of the strategic plan while the CTO was racing ahead with its recommendations.
