Cyprus-Forum.com

[Numbers]

Below is the press release for another report about the (positive) impact on business of reunification. Huge proportions of tourist enterprises interviewed on each side saw reunification as a win win. It is published by the Management Center and authored by too many people to list!
This follows the co-authored PRIO report published a few weeks ago http://www.prio.no/page/Publication_det ... 50923.html

19, March 2008
THE FUTURE OF THE TOURISM INDUSTRY IN CYPRUS:
DIVIDED OR REUNITED?

PRESS RELEASE

The tourism industry in both parts of Cyprus expects expanded business in the event of a settlement of the Cyprus problem. There will be Efficiency Gains (or Peace Dividend) as a result of increased demand, greater competition, economies of scale and lower operating costs.

This will benefit both sides resulting to a win-win situation. A United Cyprus will become a single tourism product, a more attractive destination and there will be greater cooperation in marketing and tourism development.

At the same time, tourism professionals of the two sides believe that the continuation of the current political situation results in lost business opportunities, and is perceived as a lose situation, at least for their side. This is the main conclusion of a bi-communal empirical study coordinated by the Management Centre and funded by the British High Commission in Cyprus.

The research team found that although the industry appears to be on a rising revenue trend overall, this trend is not considered stable and sustainable; the study suggests that a united tourism strategy based on special interest tourism would be a more sustainable and profitable way forward rather than keeping two separate tourism industries on the island dependent mainly on mass tourism.
*98% of the Turkish Cypriot respondents and 79% of the Greek Cypriot respondents see a win-win situation with a joint tourism industry.
*A settlement improves turnover expectations considerably: More than 50% of the TC sees a 20-30% percent increase in their turnover in two years and more than 50% of the GC sees more than 10% increase in their turnover in three years in the event of a settlement.
*The econometric analysis looking at demand sensitivity suggests that high income groups who are attracted to special interest tourism will be more suitable for a joint tourism industry on the island

The econometric model has further highlighted the importance of "country specific" marketing and promotion in major tourist sending countries (e.g. Britain, Germany, Turkey). Accordingly, Cypriot tourist industry stakeholders need to carefully fine-tune holiday packages to suit specific income and cost of living preferences of potential foreign tourists choosing to come to Cyprus.

The team concluded that a settlement acceptable to both sides would expand the tourism market and increase competition among airlines, hotels, restaurants and transport providers. This would lead to more efficiency in the provision of tourism services and better value for money for tourists in Cyprus.

[Nurgary]

Would be nice if it happened - but the quality of product in RoC i.e value for money needs to be addressed there. As tourists can't just be expected to come as you have sun and sea. Tourist numbers are on the decline.

I can see tourist resorts getting more tourist numbers a currently they offer good value for money. Once all the fully inclusive resorts come online at Bafra I can see them taking a big market share as they are truely something speacial.

What is required is cheap flights into Cyprus.

Punters want a good holiday on the cheap and there are many other places they can get it.

[Numbers]

Dear Nurgary
Although cheap flights would help I think they will soon be a thing of the past in this environmentally conscious age, so we shouldn't rely on them. And to survive we need to move up the value chain, not down.
The report also looked at what influences demand on both sides of the island. It found, roughly translated into layman's terms, that Germans like cheap and cheerful (which we can't really offer any more on either side) but the Turks and Britons coming to the south are prepared to pay for quality. (Britons like cheap and cheerful in the north if I remember right). So that is what we need to work on. Where are those marinas, golf courses (and how will we water them)?

[jazz]

Hi Numbers, the newest golf course in the North (Esentepe) maintains itself with it's own desalination unit. (The grass is a special variety from America). There is also a new marina being built in the same area on the coast. I agree that neither side is geared up for cheap holidays, but high value tourists are often disapointed with high costs but low quality and a general "run down" feel to the areas with building works, huge trucks belching black smoke, and of the course the obligatory holes in the roads!!! I do believe however that in a few years all this will be put right and its a case riding it out till then.
Jazz

[Nurgary]

Not sure you can't offer cheap and chearful as i am sure you could if there was a will.

Take Turkey for instance around Antalya - fantastic hotels that offer fully inclusive at offer the punters great value for money with fantastic facilities. They also have great occupancy rates. Now in the North the new hotels in Bafra will offer the same. They offer what the tourist wants at a price they can afford.

Unless the quality and service levels rise not only in the South but even Girne how can they compete. The key to good business is little but often not just lets make what we can now.

[Numbers]

Dear Nurgary What you said about Girne. I think that this is one of the reasons (as well as the political ones) why GCs don't cross so much any more. The first thing the GC TV stations said in April 2003 was that you could get a fish meze in Kyrenia for CYP 5. Best advert in the world! Now it's the same or more than the best places in the south, so you have more hassle (ID, insurance etc) to get the same thing.

[Nurgary]

I travel across the border a lot and the North is still far cheaper out of town. You can still get a good sea bass for under 20YTL and even a great T Bone with all the trimmings.

But I do take onboard what you saying - some have got gready and work for quick high profits now. They are the first to moan and cry when people stop coming. Look at Ezic in Girne - they are full all the time as they offer great selection of quality foods at a good price.

mark up on drinks is other issue - think governments should set a maximum price.

[Numbers]

What's the address of that 20YTL sea bass? I love the stuff.

[Nurgary]

Ezic on hill above Girne - Great place you would be impressed at menu and prices. Or go out towards lapta there are a few places out West that do also.

[Numbers]

Thanks )