The Deputy Ministry of Tourism sets the target for 2024 to maintain tourist arrivals at the same levels as last year, amidst geopolitical instability and other unpredictable factors such as aviation issues affecting flight schedules, stated Deputy Minister Costas Koumis.
Simultaneously, the Deputy Ministry aims to enhance the country’s tourism product through 16 subsidy schemes currently underway or scheduled for this year, contributing to the achievement of the tourism sector’s long-term strategic goals.
Despite the loss of the Russian tourist market due to the ongoing conflict in Ukraine and the crisis in Gaza affecting Israel, another significant tourist market in Cyprus, tourist arrivals in 2023 reached 3.85 million, marking the third-best historical performance with a 20% annual increase and only 3.3% less than the 2019 record.
According to Koumis, this demonstrates the filling of the gap left by the loss of the Russian market.
“In general, the target for 2024, given the current situation, is to achieve a performance equivalent to the previous year,” stated Koumis in a press conference today.
He expressed that whether the final number of arrivals is 30, 40, or 50 thousand more or less, in his opinion, is much less significant than maintaining high-performance levels.
He expressed optimism that they would achieve this despite challenges and adversities faced.
Additionally, he mentioned that tourism revenue approached €3 billion, reflecting a 22.6% increase nominally and 18.4% in real terms, excluding tourism. Based on the latest data from the World Travel & Tourism Council, the total contribution of tourism to the Cypriot GDP in 2023 is estimated at 12.8%, up from 12.2% in 2022.
Regarding maritime tourism, although 2023 started with promising signs indicating a new historical record, the conflict in neighboring Israel halted the upward trajectory, with Israel being used as a home port, closing with 322,000 visitors.
For 2024, passenger traffic is expected to decrease due to the significant loss of Israel as a source market.
Koumis highlighted the challenges facing Cypriot tourism, including ongoing conflict between Hamas and Israel, broader tensions in the Middle East, economic downturns in Germany and the UK, traditionally Cyprus’s largest tourist market, along with the aviation crisis due to engine issues affecting over 40 airlines.
Regarding air connectivity, the Deputy Minister mentioned that 55 airlines have scheduled flights to and from Cyprus this year, the same as in 2023.
Responding to questions about airline seats, the Deputy Minister stated they had no updates from an airline most affected by engine issues, but they concluded some agreements for new programs with other countries during the ITB exhibition in Berlin.
He noted that the initial estimate for 2024’s budget preparation was 450,000 additional seats, but there would be a reduction.
“We expect a slight decrease in airline seats; what’s more important for us is to preserve arrival levels.”
Regarding tourist market performance, Koumis anticipated an increase from Poland, a slight increase from Scandinavian countries, and significant contributions from Balkan countries, especially Romania and Serbia.
For the UK and Germany, he expected similar levels to last year once economic challenges in those countries are overcome.
Especially for the UK, he mentioned a decrease in April due to earlier Catholic Easter and a relative decline until mid-May, followed by a return to last year’s levels with a strong September and October, as tourists seem to prefer this period due to climate change rather than July-August.
Koumis emphasized the commitment to strengthen the country’s tourism product, essential for achieving tourism’s long-term goals, such as extending the tourist season.
“This is why we place great emphasis on the subject called the product because only with proper investment in the product and, of course, with the corresponding promotion, can we be optimistic,” he stressed.
In this context, he referred to the 16 subsidy schemes implemented by the Deputy Ministry, four of which relate to the Recovery and Resilience Plan, with a total provision for 2024 amounting to €11.24 million, of which €8.1 million comes from the Recovery Plan.
The largest expenditure plan concerns the Revival Plan for Rural, Mountainous, and Remote Areas, which is expected to be announced in a few weeks with a budget of €4 million, while last year, 82 local authorities benefited from a €1.28 million expenditure.
The second announcement of the Plan for the Upgrading of Catering or Traditional Product Sales Spaces in November 2023 saw increased funding, with €2.5 million compared to €1.09 million in the first announcement.
The plan to encourage foreign sports teams, clubs, associations, and federations for training and preparation in Cyprus was re-announced with modifications in 2024, and according to the data, 119 teams have chosen Cyprus compared to 92 last year.
In response to a question about tourists traveling to the occupied territories, the Deputy Minister of Tourism stated that this issue is longstanding and is a result of the Cyprus problem remaining unresolved, noting that “it is apparent that the problem is growing year by year, which is due to several factors.”
“In essence, we cannot do much,” he said, mentioning that the Deputy Ministry has worked on the matter by informing travel organizers promoting tourism to the occupied territories and by raising the issue in meetings with Ambassadors of specific countries.
“In some cases, tangible results seem to emerge. However, it is an issue for which we cannot do much, but it is an issue we are monitoring,” he added.
When asked for statistics, Koumis said that the Statistical Service has the data, which is confidential without giving a specific percentage. He noted that “the percentage, however, is not very high.”
Furthermore, Koumis referred to the efforts of the Deputy Ministry of Tourism to simplify and modernize the legislative framework for licensing and operating all types of tourism businesses, as well as legislative initiatives with bills to address any gaps in the hospitality sector and the operating hours of recreational centers.
