HOTELIERS have given the thumbs-up to a move by a Cyprus-based group of businessmen to bring the Russian talent show Star Factory to Cyprus.
Zacharias Ioannides, the Director General of the Cyprus Hotels Association (PASYXE) said when the first presentation was made in April, it had left him and his colleagues open-mouthed.
Since news of the possibility that the popular show, broadcast by Russia’s Channel One, might be hosted in Cyprus, the €8 million cost has been the subject of some controversy. However proponents believe it would bring much-needed publicity and increase the number of Russian tourists to the island.
SB Exclusive, the company representing Channel One in Cyprus yesterday held a detailed presentation in Nicosia on the project. Business Development Director of the company, Anastasia Bibikova said Channel One was the largest and most successful television broadcaster in Russia, where it is the leading channel of choice for its population of 140 million, as well as a further 70 million from the former Soviet republics and 40 million in Europe, America and Australia combined.
It was also responsible for organising this year’s Eurovision song contest. The popularity of the Star Factory contests is unquestionable, with the channel having staged seven so far, all of which have been huge hits across the Russian-speaking world.
Bibikova did not linger for too long on the intricacies of the show itself, cutting straight to the point with: “Alright, now let’s talk about money.”
As things stand, roughly 180,000 Russian tourists visit Cyprus each year, compared to a million who go to Turkey and two million who choose Egypt.
Bibikova used the case study of a similar yet less popular Russian TV show which was staged in Antalya in Turkey in 2005. According to her, Comedy Club TV’s use of the Turkish resort town as a venue led to an “increase of 25 per cent of Russians holidaying in Turkey.”
“Even with the most pessimistic estimate of a 15 per cent influx of tourists who, as studies have shown, do not spend less than €600 each on holiday, this equates to a revenue of roughly €16 million,” she said.
PASYXE’s Ioannides added that Russian tourists had been shown to spend significantly more than the average visitor, which means that the potential for a significant financial return immediately flowing into the economy while the event is ongoing is almost total certainty.
The ability for the show to lure the predicted throng of tourists will be further enhanced by “tour operators being able to provide package tours specifically designed to incorporate the events into the holiday” and that the series of concerts, competitions and parties will all be free for tourists to attend, he said.
The event would also take place in the latter part of the year, which would “extend the tourist season for a minimum of two months”, which is one of the longest-running goals of the CTO.
As well as the immediate economic benefits, the amount of advertising and promotion which Channel One is offering to the host country is immense in scale and unprecedented in the world of commercial advertising. As part of the €8-million deal, Cyprus will be granted three months of direct advertising, equating to 3,650 minutes for delivering 25-minute highlights on prime-time Russian TV as supplements to the Star Factory broadcasts.
If bought separately, this amount of exposure would, according to Bibikova, in theory “cost €126 million, but would not be allowed anyway because of advertising regulations.”
It was also mentioned in the press conference that if the show does go ahead in Cyprus, then Channel One will likely also stage other events such as an extreme sports festival and other music shows that will again take place in the off-peak tourist season and ultimately generate much more publicity and revenue for the island’s economy.
The government is expected to give their answer to the proposed deal next week.
