CTO says tourism bookings down 20-30% this summer
THE CYPRUS Tourism Organisation (CTO) is basing its hopes on last minute bookings, after statistics showed there has been a 20 to 30 per cent reduction in bookings for the summer.
The information came to light during yesterday’s House Finance Committee meeting, which discussed the CTO’s 2009 budget.
According to the organisation’s Chairman, Panos Englezos, the situation is currently looking bleak.
Bookings, he said, were reduced by 20 to 30 per cent compared to the corresponding period last year. But he said this was an international phenomenon due to the international financial crisis.
The biggest loss for Cyprus was the 30 per cent reduction in bookings from the UK, which is Cyprus’ biggest tourist market.
There was also a 14 to 16 per cent reduction in arrivals for the first two months of this year, despite a small boost of 15,000 tourists who recently arrived to watch Rally Cyprus.
Now the CTO is basing all its hopes on last minute bookings said Englezos, though he did praise the measures taken by the government to boost ailing tourism, which has resulted in considerable discounts for travel packages.
“The CTO, government and tourist industry are making every effort to maintain tourist arrivals on the same levels as last year, with the least possible losses,” said Englezos.
The CTO budget provides equal income and expenditures of €102 million; both increased by around €22 million compared to lat year.
Speaking to reporters after the meeting, Englezos said the same problem was being faced by the rest of the world’s tourist destinations.
“We don’t believe the reductions we have today will continue, but we do believe that they will increase later, at the last minute,” said Englezos. “This view is also shared by our associates abroad, the travel agents.”
Earlier this year, British tour operators issued a stark warning to Cypriot hoteliers: either cut room rates or they will cut capacity to the island from the recession-hit UK market where only value for money counts.
At the same time it was revealed that bookings to Cyprus for this summer are even worse than expected. From the 20 per cent drop hoteliers were predicting last November, reservations to Cyprus are in reality down between 25 per cent and 35 per cent, according to Noel Josephides a board member of the Association of British Travel Agents.
Cyprus Hotels Association Director General Zacharias Ioannides said he could confirm that these were also the latest figures the hoteliers had. He also confirmed that tour operators were pushing hard for discounts.
Little funds have been forthcoming from the state, which has so far allocated only €12 million to boost tourism, and this was given over to the CTO for advertising.
