What to do about falling tourism numbers?

Hoteliers make their case to officials

GERMAN tourists complain twice as much about their holidays in Cyprus than they do about their visits to Greece and Turkey, chairman of the Cyprus Tourism Organisation (CTO), Panos Englezos, said yesterday.

Englezos was one of the speakers addressing the annual general meeting of the Cyprus Hoteliers Association (PASYXE) where hotel owners aired their grievances to an audience that included President Tassos Papadopoulos.

In his address, Englezos said a recent report by Germany’s biggest tour operator TUI, said its tourists had a lower level of satisfaction with hotels in Cyprus compared to the three of the island’s biggest competitors, Greece, Turkey and Egypt.

“Weaknesses were found n the level of service, the quality and the variety of menus, entertainment in the hotels and in the facilities in the hotel rooms,: said Englezos.

He said complaints about hotels in Greece and Turkey stood at around seven and eight per cent among TUI’s customers but for Cyprus the level was 14.5 per cent.

“It is obvious that there is great scope for improvement in the hotel industry and its engagement to quality and this should be acted on,” Englezos said.

The CTO chief said on top of that Cyprus was not a comparatively cheap destination for package holidays due to the high cost of the air fare included in the holiday price, which made it imperative to improve quality and standards.

“But we need a dynamic contribution from the hotel industry,” he said.

However hoteliers have their own side of the story. They say the government is not doing enough to help them upgrade.

PASYXE chairman Haris Loizides said he wanted to make clear that for the hotel industry, the issue of arrival numbers was no longer an indicator for them but he didn’t want to engage in the blame game, he said.

“For hoteliers, arrivals are one thing and overnight stays are another because three in every ten arrivals to Cyprus do not stay in legal tourist accommodation,” he said.

Loizides said that average hotel occupancy had fallen from an already low 43 per cent in 2005 to 41 per cent last year. He also said that since 2001 £250 million in revenue had been lost.

So far this year arrivals are down four per cent and in April they were down eight per cent. The two biggest markets. Britain and Germany, are the ones with the most noticeable fall.
Loizides said hoteliers were not making any demands on the government – just asking for some assistance that could be given as it is in other countries. He said in Greece for instance airport charges had been cut in half for the winter period to bring in more tourists.

“Our winter tourism industry is in danger of being wiped off the map,” said Loizides, adding that in 1996 winter tourism constituted 24 per cent of all tourism. Last year it contributed only 16 per cent.

“We are not making demands – as is mistakenly thought at times,” he said.

“As the private sector we realise that we cannot get everything from the state but this does not preclude the state from leading the way. The state owes to the industry to undertake a dynamic, creative and tourism friendly policy.”
Loizides said the government needed to look at what competing destinations were doing to help their tourism industries.

He said at least to boost winter tourism, the government could look at reducing the cost of heating fuel for hoteliers to the lowest possible level allowed under EU regulations, they could reduce electricity costs and lower VAT. These measures are taken in other EU countries, Loizides said. Boosting winter tourism would also keep more hotel workers employed all-year round, he said.

In his address, Papadopoulos said the government remained committed to the tourism industry saying it was a priority for the economy.

He said competitiveness was a challenge and needed to be faced with modernisation and the adapting to new conditions. Papadopoulos said he was aware of the challenges for hoteliers and called for a collective effort from everyone in the industry.
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