Why has the CTO and the government been talking up the tourism market when it has been blatantly obvious that this year is going to be the worst that Cyprus has ever encountered?
Does no one in government look at the experiences of other so-called victims of the global recession and realise that truth is a key factor in survival?
The building industry could have been better protected had planning departments reacted to the factual information available to them at the time and stopped the issue of permits to developers in order for them to complete the housing stock already on their books. Instead, we now have a landscape of uncompleted and unsold buildings which will deter the very few buyers not already discouraged by the title deeds fiasco.
The hotel industry could have begun encouraging the domestic market over the winter season, thereby providing the necessary buffer to keep the hotels ticking over. Instead they continued to charge vastly inflated prices and practiced the common Cyprus business plan of “if you have fewer customers you must charge them more”.
My wife and I visited a five-star hotel in Paphos to be greeted by three staff at the outside of the main entrance, six staff in and around the foyer, two receptionists and we saw four guests. Walking around the outside of the hotel, we counted four rooms occupied. On enquiring about their room rates they said the did not offer any special discounts and we would have to pay extra for a sea view room!
The rack rate quoted would have paid for an all inclusive five-day holiday in Sharm el Sheikh!
Instead, we went to an excellent hotel in Ayia Napa which we had booked for €70 per night through an English website. On asking the local charge for Cypriot residents at the hotel reception, we were told that it would be €130 per night. So much for encouraging the domestic market!
The assistant manager was genuinely shocked when we confronted him on this issue but proudly stated that he had just upgraded a young Cypriot lady who had made a last minute booking at €120 a night and she now had a sea view!
Given my travels and observations around the island, I believe that tourism is down by 40-50 per cent due to the greed of the industry who refused to discount their rates to the tour operators, the lack of action by the Government in reducing airport charges and lastly the strength of the euro.
The construction industry is now collapsing, the banking/financial industry will follow when they find they have a mass of repossessed properties on their portfolios. So who precisely is going to be able to afford to participate from the domestic market? I for one am hunkering down for a long hard recession despite the rosy government statistics.
(Name and address supplied)
