THE CYPRUS Tourism Organisation (CTO) yesterday sought to refute claims that EU is planning to sanction the body for subsidising foreign tour operators in ways that breach free market and competition principles.
In a harshly worded statement issued yesterday, the CTO blasted what it described as “inaccuracies” in an article that appeared in Alithia newspaper.
“Never and under no circumstances has any law or EU regulation been violated and on this issue the CTO is categorical. Our organisation has an excellent and transparent co-operation with all tour operators abroad and supports them, but always within the framework of the law and the rules of the EU and after acquiring all the approvals from the bodies it is obliged to turn to,” the CTO’s reply read.
According to Alithia, the CTO compiled and enforced a secret plan aimed at subsidising and financially supporting some foreign tour operators in exchange for a promise to increase tourist arrivals in Cyprus.
As a result, the report continued, the EU is officially preparing to ask for an explanation from the government and may even impose a fine, which the taxpayer will be asked to cover.
Aside from its inherent falsehoods, the CTO also alleged that the timing of the Alithia article’s publication was designed to serve particular interests, the statement said.
“Questions are raised by the fact that the specific article, which includes numerous inaccuracies, was published on the eve of the change boards of semi-governmental organisations,” the CTO’s announcement read.
Alithia’s report also claimed that the process of selecting associates in other countries was not transparent, giving the example of a specific travel agency in Russia, which reportedly claimed a share of the CTO funding, although it does offer packages to Cyprus.
“In relation to what was written about the Russian travel agency, where it is challenged if it is an agent, questions are raised on why this story is published again and two days before the changes in the SGO, as it has already been addressed in the past.
The European Commission Representation in Cyprus was yesterday unable to comment on the issue, as the office had made enquiries on the matter to DG Competition in Brussels and is expecting a briefing.
