The Cyprus Chamber of Commerce & Industry (CCCI) Tourism Committee convened to assess the geopolitical developments in the wider Middle East region and their impact on the Cypriot economy and the tourism sector.
Following the meeting, the Committee noted that despite the recent temporary ceasefire, there is no room for complacency, as ongoing uncertainty continues to affect market confidence and tourist flows to Cyprus.
The Committee warns that failure to take immediate action may inevitably lead to knock-on effects, curtailment of activities, losses of income and jobs, with wider social and economic consequences.
The picture that is emerging is particularly worrying. All available data converge on the fact that the month of May is also heading towards loss, depriving the market of a critical point of recovery. The continuation of this situation puts the viability of a large number of businesses at immediate risk.
The decline in tourism activity is not an isolated or temporary phenomenon; on the contrary, it has a knock-on effect on the entire tourism ecosystem and the broader market.
The impacts are recorded in all key and supporting links of the tourism chain. Specifically, travel agents, airlines and ferry companies, as well as land transport, are affected.
At the same time, car rental companies, hotels, catering and the broader HORECA sector are under significant pressure. Meetings and Exhibitions (MICE), Destination Management Centres (DMCs), trade, as well as supporting sectors - such as cleaning, procurement, logistics and technical support services - that directly support the operation of the tourism industry are also affected.
The data recorded is considered particularly worrying, with reduced completeness, increased operating costs, shrinking turnover and intense financial pressures, combined with increased - in several cases prohibitive - insurance premiums due to high perceived risk.
The findings of relevant scientifically documented studies confirm the significant losses already recorded in the sector and warn of further deterioration, with direct and indirect impacts on the entire tourism chain.
In this light, the Committee emphasises the need for the Government to effectively utilise the institutional and political role of the Republic of Cyprus, especially in view of the Presidency of the Council of Europe, by taking coordinated actions to strengthen and manage the country's international image.
Specifically, it recommends the immediate sending of official letters from the Ministry of Foreign Affairs to the Embassies of foreign countries based in Cyprus, as well as to international media and journalists, with clear and unified messages of security, stability and regularity.
At the same time, it is emphasised that ensuring the organisation of high-level international conferences and meetings, such as the Conference of Foreign Ministers scheduled for early May, is of crucial importance, as any cancellations would once again send negative messages and reinforce the image of concern for the country.
The need for effective and unified management of the issue of travel advisories, through coordinated and targeted actions, is considered particularly critical, in order to avoid further burdening the image of Cyprus as a tourist destination.
In this direction, it is considered necessary to adopt a unified policy and line of communication by the Deputy Ministry of Tourism, in close coordination with the Ministry of Foreign Affairs and other involved bodies, for the consistent, valid and reliable handling of questions and concerns expressed by visitors and foreign markets.
At the level of tourism policy and crisis management, the Committee considers it imperative for the Deputy Ministry of Tourism to immediately proceed with coordinated communication and consultation actions with all stakeholders in the tourism industry and directly related sectors.
Direct contact, mutual information and substantial coordination are deemed necessary so that the decisions made respond to the real needs of the market.
In this context, the Committee recommends the issuance of targeted financial support measures, tailored to the needs of individual sectors, as well as the provision of communication and promotional support to airlines, with the aim of ensuring and strengthening Cyprus's air connectivity.
At the same time, it is deemed necessary to immediately implement the 'Tourism Revival Plan of Action' by the Deputy Ministry of Tourism, without further delays, as well as to seriously consider extending the tourist season, as a measure to strengthen the resilience of the sector and partially offset losses.
The CCCI Tourism Committee calls on the Deputy Minister of Tourism and the co-responsible Ministries to directly contact and communicate with the Committee, with the aim of providing substantive information on the conditions prevailing in the tourism market and taking targeted support measures.
(Source: InBusinessNews)
