CYPRUS MAIL
Sunday, February 11, 2007
Cyprus hoteliers warned that seat only flights will contribute to their demise
BRITISH tour operators are warning that low-cost carriers to Cyprus will decimate the hotel industry and boost tourism to the north.
Three low-cost British airlines, Monarch, Flyglobespan and XL, plan to start operations this year between Cyprus and the UK following an increased demand for cheap flights.
Tourism Minister Antonis Michaelides has welcomed the move and indirectly berated hoteliers for painting a negative picture of tourism given that numbers were only slightly down last year while revenue was up.
However British tour operators, whose business is also affected by low-cost carriers as seat-only flights render package holidays a thing of the past, are joining the doom and gloom chorus.
“The common idea in Cyprus is that low-cost airlines will be a saviour when in fact they will desecrate the hotel industry and boom property alternatives,” Thomson Holidays representative Geoffrey Bezina warned Cypriot hoteliers at a conference in Nicosia.
“Low cost carriers are a threat to tourism everywhere,” said Angela Mazzey the overseas purchasing manager for First Choice. “From a tourism operators’ point of view we cannot compete.”
Noel Josephides, the president of the UK-based Association of Greek Cypriot Travel Agents (AGTA) went a step further, saying that more and more Turkish Cypriot travel agents, under pressure to boost numbers to the north, were using Larnaca as a more convenient and direct entry point to the island.
He said out of last year’s 2.4 million tourist arrivals to Cyprus, 34,000 went to stay in hotels in the north. This figure could rise to 100,000 this year, he said as the number of low-cost flights increases.
“This is going to be a growing trend,” said Josephides.
More worrying however was the decline in bookings for actual package holidays to Cyprus, which are the bread and butter of tour operators and hoteliers.
Josephides said that in 2000 his own company Sunvil was booking over 4,400 packages to Cyprus. Last year numbers fell to 1,405, and bookings for this year so far numbered only 382, some 20 per cent down for this time of year. Other Cypriot specialists were as much as 40 per cent down.
“Not a single operator for Cyprus is particularly optimistic,” said Josephides.
“We are seeing an enormous increase in demand for flights only while we are selling packages at ridiculous prices. Expats want cheap flights to Cyprus. There is no shortage of seats and as more flights come in, tour operators will cut back on their programmes to Cyprus and that will be a problem. The advantage of a tour operator is that he force feeds clients to your properties. No seat-only operation will ever do that,” he warned the hoteliers.
Josephides said low-cost carriers were also not necessarily cheaper.
“Everyone likes to knock Cyprus Airways but the reality at the moment is that it’s just as cheap as the others,” he said.
He said Monarch fares for August were the same as Cyprus Airways, while Flyglobespan were some £20 cheaper for the same month. He also said people should bear in mind that Cyprus Airways travels to Heathrow while the others did not.
Josephides also said tourism authorities needed to stop website advertising by people who own properties in Cyprus. “Approximately 20,000 British citizens own homes in the south. Their own visits and those of their friends and relatives to stay in their properties are destroying hotel occupancy rates.”
He said the Cyprus Tourism Organisation (CTO) must have the power and resources to tax individuals marketing their properties on the web and enforce minimum standards and heavy fines if these individuals were operating without a licence.
“Tour operators just cannot compete any more, and this is affecting hotel occupancy, and it will continue. This is not the same Cyprus it was 15 or 20 years ago. The fact is some of us will go out of business and tour operators will no longer be a force in expanding tourism to Cyprus.”
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