ACTTA President Charis Papacharalambous on how Cyprus can become a year-round destination

The President of the Association of Cyprus Travel & Tourism Agents (ACTTA), Charis Papacharalambous has emphasised the need for all stakeholders involved in tourism - including the state and sector professionals - to understand that investments are required to change Cyprus' tourism product and achieve the goal of transforming the country into a year-round tourist destination.

He also noted that it will take a few years for the results to be seen.

As Papacharalambous specifically states in an interview with InBusinessNews, "it is clear that we must first make the decision to invest in the winter tourism sector and at the same time develop specialised forms of tourism, which, in most cases, operate during the winter months and the months adjacent to them."

At the same time, he clarifies that "we must realise that we cannot develop everything and certainly not at the same time, and therefore a choice must be made based on where we can have a competitive advantage and invest substantially in a small number of such forms of tourism and, once we reach a certain point with them, slowly move on to others."

Regarding the ambitious goal of attracting tourists from the USA and India, Papacharalambous expresses the opinion that "I am not sure if these markets should be among our priorities, as we are not a first or even second choice destination for them," underlining at the same time that "neither the Americans, nor the Indians, nor the Chinese, have Cyprus among their priorities when it comes to their travels."

As travel agents, you are certainly a very important cog in the chain of our country's tourism industry. We would first like your general reading of things in relation to the image of the sector today? How do you evaluate the tourism product of Cyprus?

Travel agents are extremely important when it comes to tourism in Cyprus, and also in any country, especially when it comes to island destinations, such as our country.

As a destination, we have high rates of tourism from foreign tour operators. A recent survey by the Association puts the number at almost 75% of visitors who come for recreation.

Therefore, the role of the travel agent is extremely important, in the sense that it is the connecting link between the services offered in Cyprus - hotels, excursions, transportation, etc. - and the organisers and constitutes their right hand.

Regarding the Cyprus product, in general I have the feeling that it is very good. When we talk about product, we cannot focus only on hotel units, but we must consider the whole product, that is, what else it can offer and what the visitor can do and make us of, such as infrastructure, transportation, beaches, entertainment and recreation areas, etc.

At the same time, we must admit that there are weaknesses, for example in some infrastructures, which concern more specialised tourism, as well as in general issues that touch many of our culture, such as cleanliness, noise pollution, visual pollution, infrastructure maintenance, but also weaknesses at the level of urban planning framework.

All of this clearly affects the image of Cyprus, which also lags in terms of character as for years we did not invest in our tradition.

In recent years, this has begun to change, as the industry has realised that tourists are looking for the authentic local experience.

Chronic problems and how they can be solved

During the last general assembly of your Association, last December, you asked for the intervention of all those involved in tourism, in order to resolve the long-standing problems in the sector. What are these problems and what are ACTTA's suggestions for resolving them?

I have already mentioned some of the similar problems, such as cleanliness, pollution, etc., in which we unfortunately lag behind in compared to several other destinations, even though there are laws that are either not implemented or withgaps in them, resulting in a relative anarchy or unevenness.

The good news, however, is that we see areas, such as Paphos, that have, with a lot of effort, changed their image significantly for the better in recent years. In other areas, the image has changed as well, but not to such an extent.

Having said this, you understand that although the philosophy when the competent Deputy Ministry was created was that it would have horizontal jurisdictions, in reality the legislation has not been differentiated accordingly and many things remain in the hands of local authorities and other Ministries, resulting in things moving at a slow pace.

Beyond that, the most important problems facing the industry are to some extent interrelated and related to seasonality and connectivity, which are our two biggest issues and which unfortunately are timeless despite the partial progress that has been achieved at least in connectivity during the summer season.

The third issue concerns personnel, and especially trained personnel. Although some solutions have been provided, all three of these issues together - two definitely, the third partially - are interrelated.

If we offer more "product" during the winter season by supporting employment instead of unemployment, we will certainly see more interest from airlines and tour operators.

We will never achieve our goals (which cannot be anythinganthing other than 12-month tourism) if we do not do something different from what we have done so far and if we do not involve all industry stakeholders through a medium and long-term strategic plan.

The Association has repeatedly proposed the creation of specific committees consisting of a small number of individuals who know the subject with instructions to submit very specific plans including incentives and other suggestions on how we can develop and manage these issues.

As I mentioned before, for things to change, we have to do something different from what we've been doing so far. Continuing to do the same thing, or almost the same, is not going to change the situation, and that's a given.

In order for changes to be made, all stakeholders involved in tourism and our tourism product must contribute and realise that it will take a few years of investment until we see results.

When we see destinations like the Canary Islands being, or considered, mainly winter destinations, or an island like Malta being a twelve months a year destination with all services and all hotels open and full, it's hard for anyone to convince me that we can't achieve it too.

It's a matter of what you offer, and that's where we come to the product, specifically a specialised product that you can develop for the winter season, because clearly the winter tourist is very different from the summer tourist.

This is where we also need to focus on forms of tourism that "fit" Cyprus and where we could create comparative advantages. The word "focus" is key and only by studying the prospects and markets can they emerge.

We would like to focus a little more on the issue of connectivity, but also seasonality. We see that the relevant ministries are taking steps to address them and these moves are largely bringing results. Do you think they are moving in the right direction and how satisfied are they with them?

In order to consider the results as satisfactory, we need to analyse them a little.

The data, at least for seasonality over the last twenty years, shows that the percentage of tourists coming from November to March has essentially not changed. The numbers have changed in absolute terms, but proportionally they remain at the same levels.

Therefore, I believe that we still have a long way to go.

Connectivity has clearly improved, especially during the summer season. Therefore, we have a lot of work to do in this area as well.

Personally, I am of the opinion that in order to develop these two key issues, firstly we should aim for year-round tourism and not simply at extending the summer season, secondly we should have a very specific plan with specific measures - incentives and commitments from all stakeholders that the product will exist.

If the product doesn't exist first, we can't expect foreigners to take on all the risk and in the end, for example, there won't be the hotels available for the places they are offering.

It is clear that we must first make the decision to invest in the winter tourism sector and at the same time develop specialised forms of tourism, which in most cases operate during the winter months and the months adjacent to them.

At the same time (although logical) I believe that the benchmark should not be the previous year or the best performance in arrivals so far, but the goal and benchmark should be our real potential and perspective. It should not escape us that intense seasonality creates additional environmental pressures in a period where environmental issues are becoming increasingly important for the industry and travellers.

What specialised forms of tourism do you believe Cyprus should or could invest in in the coming years?

There are many sectors in which Cyprus could invest, such as sports, medical, conference, etc.

On this point, however, I must say, we must realise that we cannot develop them all and certainly not at the same time, and therefore a choice must be made based on whether we can have a competitive advantage and invest substantially in a small number of such forms of tourism and, once we reach a certain point with them, slowly move on to others.

It certainly needs focus and we need to see, I repeat, where we have the advantages, but at the same time what size of investment is needed, either from the private sector, or from the state, or jointly, both in infrastructure and in the size of the market itself.

That is, if we say that we will move to attract sports tourism, football is one thing, track and field is another, as are the sizes they can offer.

Also, cycling tourism is very different, because cycling is not only a professional type of pursuit. In this direction, we should slowly take care to hold some events or sponsor some competitions of well-known names in some sports or have a presence at concerts where some names attract a lot of people.

Essentially, we now need to invest and aim high enough, because this will also offer us recognition and advertising.

The goal of attracting tourists from the US and India

How feasible do you consider the goal of attracting tourists from major markets, such as the US and India?

As with the issue of attracting alternative forms of tourism, so too with attracting new markets, targeting is definitely needed, and this clearly must also have prioritisation based on what investment is needed and what the potential benefits are expected to be.

I think when we talk about the US, we are talking about a huge market. The same goes for India. I am not sure if these markets should be our priorities, as we are not a first or even second choice destination for them. If we were, there would be flights, as when there is “natural” demand, there will be, mathematically speaking, supply.

In developing markets, we must be realistic and not get carried away by catchy names, we must understand what we are (tourism-wise) and how these markets see us. i.e. what our brand is and how widespread it is.

Neither Americans, nor Indians, nor Chinese have Cyprus among their travel priorities. Most of them don't know us, while sun and sea are not what they usually look for when they visit Europe, with a few exceptions, and they will visit destinations that have built a strong brand over the years.

Americans, for example, may visit Mykonos and Santorini, but these destinations have, through the years and because of their character (which they take great care of) created a unique brand. Most of them will certainly visit, when they come to Europe, more than one destination as part of a European tour of two, three or even more countries.

In conclusion, I have the feeling that there are other markets, much closer to us, which we have not developed enough yet, where we could have much better performance with much smaller investments.

Despite any problems and difficulties, in 2024 Cyprus recorded a double record in tourism, both in terms of arrivals and revenues. What do you think is the reason for this success?

Tourism across Europe has recorded a large increase. Cyprus, if we look at statistics with some other Mediterranean countries, may not have had the best performance compared to 2019.

The numbers are certainly satisfactory, taking into account the large gap we had with the Russian market, which was disproportionately large compared to other Mediterranean countries. At the same time, we are the sixth country in the EU in terms of the contribution of tourism to the country's GDP, and of the five that precede us - Croatia, Portugal, Spain, Greece and Malta - we were the only one that in 2023 had not yet surpassed the arrivals of 2019.

So, in reality, the result can be considered positive, taking into account the gap that the Russians had left. On the other hand, I will repeat that the goal and measure of comparison should be our real capabilities and not the previous best performance.

As for these revenues, they reflect the increase in arrivals, the average length of stay, inflationary trends, and the mix of our current tourism.

A huge void that emerged in recent years was that of the loss of the Russian market. Would you say that it has now been filled and how is it no longer a "black hole" in the tourism industry of our island?

The gap has certainly been filled, and this is also evident from the data on tourist arrivals in 2024, which were more than in 2019, which was one of the best years for the Russian market in Cyprus.

At the same time, it was also a painful lesson for many of us. And I say lesson because yes, it was covered over a period of two years, but this was done as the need arose to cover it and unfortunately not because we strategically tried to reduce dependence on our two largest markets, something that has also been a goal for many years.

Dependence either on markets or on any of the stakeholders involved, such as airlines, organisers, etc., is never good for the bigger picture or for the risk you take. Where you have dependencies, you have more risk and only with strategic decisions can this be limited - which often means lower returns, at least in the short term.

Approaching the tourism sector in its broader dimension, what are the other major challenges it faces? What are the major issues that affect it, in addition to those you mentioned above?

Another important challenge has to do with the environment, namely climate change, and the change in the attitude of consumers (tourists) and especially Europeans, who are our main market, who are now looking for destinations that are sensitive and have a developed philosophy of sustainable tourism.

This is something we are already seeing and will see much more of in the near future and which unfortunately we have significant ground to cover.

In view of the new tourist season that we are entering, what prospects do you foresee? How optimistic are the messages you are receiving, based on both your contacts and of course the reservations?

The indications are that in terms of arrivals, we will have an increase compared to last year. This increase, however, will almost certainly be limited to a single digit number, which is logical because occupancy rates during the summer period were high and the number of places has increased, but - from what I know - to a limited extent.

In order to have significant increases, we will now have to either create more units that can accommodate more people during the summer season, or focus on developing our tourism during the months of November-March, which will be much more beneficial for both the state and the industry more broadly.

The travel profile of Cypriots

To talk a little about outbound tourism, how would you describe the travel profile of Cypriots at this time of writing? Do they travel, how much, and which destinations are high on their list of choices?

The number of trips as a whole - not only for leisure purposes - has increased significantly, resulting in both 2023 and 2024 being consecutive record years. Consequently, Cypriots travel, and quite a lot, and this is pleasing.

Regarding the destinations chosen by Cypriots, the top two destinations are Greece with about a third and the United Kingdom with about 11-12%. But here too we have noticed that, due to better connectivity, Cypriots are now also traveling to other destinations, especially those served by direct flights.

At the same time, of course, longer trips to more distant destinations have also returned, something that until 2022 and due to coronavirus had been limited to very low numbers. In 2023, but also in 2024, we saw a significant increase in this type of travel and I have a feeling that this trend will continue.

Have you noticed an increase in the number of travelers now choosing to travel through travel agents? And if so, what is the reason for this shift?

We have seen a return to travel agents to some extent and I have a feeling that the reason is mainly the fact that during covid, where various problems arose, people realised that utilising the specialised knowledge and services of a professional is clearly worth it, in addition to the fact that in many cases it is cheaper because agents buy "wholesale" and as a result have better opportunities.

On the other hand, because many people travel, either for business or leisure purposes, to neighbouring or nearby countries that are served by direct flights, there are certainly many who make their own arrangements and assume their own risks.

Finally, what are the biggest ongoing issues for travel and tourism agents in Cyprus and what actions is the Association taking to address them?

There are several issues. Some have to do with the institutional framework, which often presents distortions and weaknesses or deficiencies, such as in transportation.

The implementation of many laws, such as the legislation concerning the operation of Travel Agencies and the provision of tourist services, is problematic as there are obvious weaknesses in implementation and punishment of illegal activities, although unfortunately this is a broader issue and not purely touristic.

Social media has given people a platform to advertise products and/or services, to organise excursions and trips abroad, without the necessary licenses, without the necessary know-how and without the necessary coverage.

Sometimes we adopt European directives, as they are, despite the fact that the data on which these directives are based is not consistent with the realities of a small state such as Cyprus. This applies to both inbound and outbound tourism.

It is very different, for example, to talk about a travel organiser operating in Cyprus and very different to have in mind huge organisations, tour operators in Europe that often have their own airlines or charter thousands of flights themselves.

Also, issues related to -for example- transport. Adopting a legislation concerning professional drivers, which is clearly based on European sizes and distances, without taking into account the real data of the country and how these can affect it, creates some gaps and some imbalances in the market. These are issues that we should look at more closely and try to find solutions for so as not to punish our own industries.

As far as inbound tourism is concerned, the challenges beyond "domestic" issues also have to do with climate change and our level of sustainable tourism.

It also has to do with the cost of fuel and the targets set by Europe which will cause additional costs. I fully recognise the importance of all these things in terms of the environment and its protection.

On the other hand, however, when it comes to competitiveness - not only of Cyprus, but also of Europe - very high goals create additional costs, which puts us all at a competitive disadvantage.

Technology is also a very important and large asset. Our industry is changing day by day and if we are not ready as companies to invest in technology, I think it will be very difficult for us to survive in the long term.

(Source: InBusinessNews)