Cyprus-Forum.com

[AndreasP]

‘Presidential Palace Involved in Discussions With Russian Channel’

IN A BID to tap into the Russian tourist market, the Cyprus Tourism Organisation (CTO), the Ministry of Commerce, Industry and Tourism and even the Presidential Palace have been negotiating with Russian Channel One to host a talent show on the island.

The deal would cost Cyprus a whopping €8 million that even the CTO described as a ‘disproportionately high’ amount.

The proposal was reportedly presented to the authorities by a Cypriot intermediary company on May 11. Interestingly, the presentation was held at the Presidential Palace, a move that authorities justified on the grounds that the deal would have political bearing.

“The meeting was held at the Presidential Palace because it is a proposal that involves political issues. They invited us because they had some insight and proposals so they held a wide meeting where several ministries took part,” said Phoebe Katsouri, CTO General Director.

“Someone must coordinate the various stakeholders. Just like the Ministry of Commerce and the CTO we also participated. The commercial representation of the Russian embassy was also present and I do not see what is wrong,” added Titos Christofides, Under Secretary to the President.

The proposal has been compiled as a draft proposal to the Council of Ministers and will reportedly be submitted by the Ministry of Commerce. It provides that the Star Factory talent show will be organized in Cyprus for a period of three months from September to November 2009.

The programme will be broadcast live from Cyprus by Channel One.

The proposal’s stated benefits for Cyprus will include advertising and promotion of the island as an ideal destination by the most popular Russian TV channel, 3,650 minutes of features on Cyprus during peak hours, and wide coverage of the event by the Russian Media.

In return, Cyprus will have to pay €8 million, 1.0 per cent of which must be provide when the contract is signed and the remaining amount must be paid within one month. Despite the high cost of the deal, authorities argue that hosting the TV show would be worth the cost as it would promote Cyprus as a tourist destination for Russians.

Due to the large amount of money involved, and the reported inability of the CTO to come up with the amount, the CTO proposed that the €8 million is paid in five equal monthly installments of €1.6 million, starting from the time the program goes on air.

This move, however, was not included in the CTO’s 2009 budget that has already been boosted with €17 million to deal with the effects of the international financial crisis. The €8 million would therefore have to come from a ‘supplementary budget’.

“The Minister of Commerce will call the Council of Ministers to approve a supplementary budget for the CTO for the total amount of €8 million, so that the cooperation and multiple promotion of Cyprus in Russia and other ex-Soviet states and the unquestionable improvement of demand for tourist flow to Cyprus becomes possible,” read the draft proposal prepared by the CTO.

Star Factory is an extremely popular music talent show in Russia that has run for seven consecutive seasons in Russia. It is estimated that 140 million people in Russia watch the show, as well as an additional 110 Russian speakers living in other countries.

Copyright © Cyprus Mail 2009

[cyprusgeoff]

If they go ahead with this it will be a complete and utter waste of money but then, when have brains been the main requirement in any government department in Cyprus?

If they have that sort of money to chuck away then they should be spending some of it to make sure Limmasol has water next year and the year after that.

[Raymanoff]

cyprusgeoff, you are underestimating the amount of arrivals this show will bring at the end of the summer season... this is not a FAME STORY in Greece, this is a massive talent show watched by 100.000.000 russian speaking people worldwide.

[cyprusgeoff]

Raymanoff, I understand what you say and I understand the thinking behind the belief that spending this money will bring countless millions of visitors to Cyprus.

What I can't see is that this will actually happen. I have watched an almighty lot of American films, chat shows and talent competitions yet I have never had any desire to visit America.

Quite the opposite in fact, from what I see of our friends across the water the less I want to go there.

I do hope you're right and swarms of Russian people visit Cyprus, spend a lot of money here and enjoy their stay.

[bruce]

yes, "c.t.o" you have to spend money to attract tourists,
they are not going to throw their money at you for no reason.
good thing you just realized that.

[BOF]

So how much will the CTO be spending on the bid to regain the British tourist market? Which at 50 percent of all tourism is the biggest market by far.
Its either extremely stupid or extremely clever to be able to walk away and ignore such a large clientbase, something no business man would like to risk..
It woud be nice to see the scheme succeed and the British market return but its a hell of a gamble.
No doubt there will be those who will shout "we dont need them"! but tell that to the tradespeople and businesses that rely on tourism for a living - sadly i think quite a few may not be here for next season.
BOF

[sniper]

Cyprus can't pay 8 million euros to host a Cypriot talent show??

[ByteHunter]

I think it would be waste of money. That money could be used on many more things.