President calls for responsible management of climate change to boost tourism

If we want to view the country's tourism future with optimism, the State must manage the issue of climate change responsibly, President of the Republic Nikos Christodoulides said in his speech at the General Assembly of the Association of Cyprus Tourist Enterprises (ACTE).

The event was held in Nicosia on 11 February.

He added that addressing the issue of climate change is closely related to the shared objective of making the tourism industry more resilient and competitive.

This, he said, is achieved when all participants in the country's tourism ecosystem are aligned and share the same ambitions and visions.

The President of the Republic further noted that tourism is one of the most important pillars of the country's economy and in this context, it is approached by the Government as a high priority sector.

In 2024, he said, historic records of arrivals and revenues have been achieved and despite the multiple challenges faced, the industry has for the first time surpassed the 4 million visitors benchmark, while a new record of revenues was achieved, exceeding 3 billion euros for the first time.

He added that over a two-year horizon, the percentage change in both arrivals and revenues exceeded 25%, which, he said, confirms the resilience of Cypriot tourism, while at the same time, it also demonstrates the hard work done primarily by the private sector, which, he noted, is leading the effort in the tourism industry and showing the way to success.

"The tourism sector, as a key pillar of the economy's development, can continue its upward trend with the drafting and implementation of horizontal policies and actions, focusing, of course, on sustainable development," President Christodoulides said, adding that for tourism to remain competitive, considering what is happening in neighbouring countries or in other destinations that compete with Cyprus, the supporting infrastructure should be constantly improved.

He also said that at the same time, investments towards green and digital transition, which the government is also taking into account in the tax reform that will be presented at the end of February, should be at the centre of any action, along with continuous investments in the field of tourism education and special forms of tourism.

He added that issues such as the need to upgrade public infrastructure, the resolution of labour issues, the need to strengthen the tourism product and the need for a stronger promotion of the country are "crucial" issues that have preoccupied the Government since the first day it took office, taking substantial initiatives to find permanent solutions.

He also referred to the Government's decision to increase the budget of the Deputy Ministry of Tourism, in order to promote the country more strongly abroad, adding that the recent launch of the country's international promotion campaign, aimed at restoring its reputation and credibility, and promoting it as an ideal business and investment destination, is also part of the same framework.

“As a government, we believe that 2024 marks the end of a cycle for tourism with the recovery of lost ground. Our responsibility from now on, and reading the signs of the times, international trends and local data, is to provide practical, targeted support to the sector, in order to continue its growth path, operating in a new context, in a sustainable and socially responsible environment, while enhancing the high competitiveness of the sector," he added.

"It goes without saying, therefore, that if we want to look at the future of tourism in our country with optimism, we, as a State and as a Government, must tackle the issue of climate change responsibly. And dealing with it, I repeat, is inextricably linked to the shared goal of enhancing the resilience, the competitiveness of our tourism product, which is achieved when all participants in the country's tourism ecosystem share the same vision”, he concluded.

In his speech, the Chairman of ACTE’s Board of Directors, Akis Vavlitis, said that Cyprus tourism, despite the challenges and geopolitical turbulence, has shown its resilience, and thanks to the collective efforts of the stakeholders of the sector, the Deputy Ministry of Tourism, the State and Local Authorities, in 2024 visitors broke the 4 million barrier and reached 4.040 million, with revenues expected to reach 3.2 billion euros, contributing around 13% to GDP.

He noted, however, that of the 4 million visitors, around 35%, or 1.4 million, did not stay in licensed hotels, and ended up either in illegal accommodation or short-term rentals, or went on holiday to the occupied territories or stayed with relatives and friends, while he noted that in 2014, the average length of stay of visitors in tourist accommodation in Cyprus was 10.7 days compared to 8.6 days in 2024, a decrease of 24%.

On the countries of origin of tourism to Cyprus, he said that in 2024 visitors from the UK represented 35% of all inbound tourism, 10% from the second market of Israel and other countries with much smaller percentages, and suggested a targeted and well thought out approach to Saudi Arabia and especially the Indian market, to attract quality tourists but also to spread the risk.

Regarding the shortage of staff in tourism, he said that it will continue to become more acute from year to year as the Cypriot economy, as well as the hospitality sector, are expected to continue to record high growth rates.

On the phenomenon of short-term rentals, he said that estimates suggest that there are about 80 to 90 thousand beds in operation in Cyprus, "about as many as the legal hotel industry has", of which, he noted, only about one third are registered as they should be, in the register of the Deputy Ministry of Tourism.

"The state must, in terms of equality towards the hotel industry, immediately establish a strict regulatory framework for their operation, with safety standards, but also an effective mechanism for compliance with the regulations to be established," he stressed.

Concluding, he called for all factors required for a holistic management of the tourism product to be taken into account, "to make Cyprus an all-time quality destination, more resilient, more environmentally friendly, digitally smart and without burdening the social environment, for the benefit of local communities, workers and businesses in the sector".

On his part, the Executive Advisor of the Greek Tourism Confederation (SETE), Alexandros Thanos, said that Greece and Cyprus are important tourist destinations for European - and not only - markets, while the institutional issues that concern the two countries are common and timeless, the most critical one being spatial planning, while he also referred to the lack of human resources and the issue of short-term rentals and the phenomena of "overtourism".

He also acknowledged the need to repair the damage caused by the natural disasters that have hit and will continue to hit countries as a consequence of climate change, but noted that the financing of these costs cannot be the responsibility of only one sector of the economy and that any money collected from climate crisis response fees should be channeled into upgrading infrastructure and the operation of destinations.

(Source: CNA)