Tourism sector of Cyrus is expected to record less tourist arrivals in 2009 due to global financial meltdown, which has severely affected the island’s leading tourism markets.
According to the industry officials, now is the turn of Cyprus to feel the impact of global crisis as the country is expected to see a 15-20% decline in bookings this year, as reported by Forbes.
With a population of barely one million, annual tourist arrival to the island is more than two million. So it should not be astonishing to know that tourism accounts for nearly 11% of the island’s GDP. The vitality of tourism sector in the national economy of Cyprus can be realized by the fact that during Jan-Oct 2008, a mere drop of 0.6% in tourist arrivals to the island resulted in a fall of 4% in revenue.
This fall in tourist arrivals is a direct result of global economic crisis as the leading markets for the island’s tourism sector – America, Israel and Britain – have slipped into negative territory due to this crisis.
Also, Cyprus is struggling hard to establish its supremacy over other competing tourist destinations that are offering relatively less expensive services to the visitors. Resultantly, the island experienced adverse effects such as fall in tourist arrivals and revenues in 2008.
In an attempt to support the tourism industry, the Cypriot government has recently announced a cash injection package of 12 Million Euro for promoting its tourism sector. To lessen the impacts of financial crunch on the tourism sector, Cyprus Airways is also cooperating with the government and tourism organization. However, the tourism industry is also seeking financial assistance to refurbish and upgrade the ongoing projects.
According to a Research Analyst at RNCOS, “Cyprus tourism sector is projected to see decline in 2009 as a result of weak economic conditions. But reduction in airport tariffs and increased assistance to airlines (of the island) can to bringing more tourists can help the tourism sector. Reduction in electricity cost, preferential VAT rates and increased government support will spur the development of new tourism products like conference centers, theme parks, museums and health tourism. This will not only help to diversify and boost the island’s tourism, but also to upgrade and modernize the current tourist accommodation facilities.”
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