A difficult and prolonged effort is expected to be required to reverse the negative trends currently affecting Cyprus’s tourism sector. Although more encouraging signals have emerged in recent days and a gradual improvement is being recorded, demand remains reduced and the sector continues to face significant pressure.
Representatives of tourism organisations conveyed their concerns following an expanded meeting held at the Deputy Ministry of Tourism on Monday, where the current situation and possible responses were discussed.
Need for continuous coordination
The Director General of the Cyprus Tourism Enterprises Association (STEK), Chrysaimili Psilogeni, said the meeting provided an opportunity to examine in depth the impact of the current crisis on the tourism sector, particularly the hotel industry.
“A shared conclusion was that, under the present circumstances, continuous and meaningful information exchange between the Deputy Ministry and tourism stakeholders is essential,” she said. Strengthening communication between the parties, she added, would allow for coordinated and timely responses to developments.
Psilogeni also noted that stakeholders requested updates on actions related to the promotion of Cyprus as a destination and the management of the country’s international reputation. They also raised the need to explore the possibility of targeted support from the European Union.
According to Psilogeni, Cyprus represents a particular case within the EU, as it is essentially the only member state whose tourism sector is so directly affected, with significant consequences for the country’s most important economic activity. The island’s connectivity, she added, depends almost entirely on air transport.
She also stressed the importance of continuing employment subsidy schemes for the hotel industry as a key measure to support hotel businesses and safeguard jobs.
EU support and promotion actions
Christos Angelides, Director General of the Cyprus Hotel Association (PASYXE), said the meeting analysed the latest data concerning tourism performance. The sector has already recorded losses for March and April, he noted, while further losses are expected in May.
“The coordination of all competent bodies is imperative,” he said.
Angelides added that Cyprus would increase its presence in international media channels as part of efforts to improve the country’s image. He also emphasised the need to accelerate the promotion of the winter tourism season in order to offset losses during the summer months.
At the same time, he noted that support from the European Union would be sought, as Cyprus is the only country directly affected in the tourism sector.
Promotion initiatives undertaken by the agency responsible for marketing Cyprus are already underway, he said. These include hosting journalists, tour operators and travel agents so they can see first-hand that Cyprus remains a safe destination.
“The current crisis is the most critical we have faced, as it concerns the improvement of our international image,” Angelides said, warning that reversing the negative perception surrounding Cyprus will be difficult and time-consuming.
Slow progress
The President of the Association of Cyprus Travel Agents (ACTA), Haris Papacharalambous, said there are signs of gradual improvement but progress remains slow.
“The sector will certainly face a difficult year,” he said, noting that in addition to the decline in bookings, a five per cent reduction in available airline seats is also expected.
“We will continue to fight. Gradually it is becoming established that Cyprus is a safe tourism destination, but everything will depend on developments in the Middle East,” he added.
Call for immediate communication
The Secretary General of the Cyprus Chamber of Commerce and Industry (KEVE), Philokypros Rousounides, stressed the need for immediate information sharing and coordination among stakeholders.
He also said the responsible minister should take a leading role in listening to the concerns of tourism entrepreneurs and understanding both the immediate and the longer-term consequences already emerging.
“Managing the news cycle is not enough,” he said. “There must be a clear understanding of the real economy and the pressures businesses across the tourism spectrum are already experiencing, from hotels to restaurants, retail, car rentals and related services. Action is required now.”
Aim to reverse the trend
According to a statement issued by the Deputy Ministry of Tourism regarding Monday’s meeting, participants exchanged views on the current situation and submitted proposals for the next steps required to reverse the current conditions in the tourism sector, which is experiencing reduced demand.
The Deputy Ministry noted that participants agreed the tourism sector is facing a particular set of circumstances. They also acknowledged that more positive signals have begun to emerge in recent weeks compared with earlier periods.
Participants further agreed on the need for steady communication and collective effort, strengthening cooperation in order to support the tourism sector and, by extension, the Cypriot economy.
Representatives of KEVE and the Cyprus Employers and Industrialists Federation (OEB), tourism organisations PASYXE, STEK, ACTA and PASYDIKE, as well as representatives of Hermes Airports, attended the meeting.
Six policy axes proposed
It is also noted that AKEL on Saturday presented six policy axes aimed at supporting the tourism industry, arguing that the measures announced by the government are insufficient and do not cover the majority of the country’s tourism sector.