Filenews 14 August 2022
Interview of Angelos Loizou by Adamos Adamou
Angelos Loizou, special advisor of the Association of Cyprus Tourism Enterprises (STEK), characterizes as a great challenge the dependence of tourism on only a few markets. In an interview with "F", Mr. Loizou, who was the last president of the CTO before the transformation of the Organization into a deputy ministry, notes that for the development of new markets, an increase in the funds of the Deputy Ministry of Tourism is required and also emphasizes that the word 'hospitality' will now be the main measure of comparison between competing countries at a time when tourists are being judged less and less organized.
Everything indicates that despite the loss of Russian and Ukrainian tourists, this year will be better in terms of arrivals and tourist results. Do you share these assessments?
Although in recent years we have learned to live with uncertainty, so far the data show that arrivals will be at a much better level than last year. We estimate around 75% of 2019 arrivals if something doesn't change dramatically. As the data show so far, arrivals are reduced by about 25% compared to the first months of 2019, while respectively revenues are reduced by 17%. We believe that part of the increase in revenues is related to the increase in expenditure to cover the sharp appreciation of some basic expenses and not necessarily to a net increase in tourism revenues.
How did hoteliers manage the loss of Russians? Are there any units that did not work? Has an attempt been made to attract new markets?
When you start the year in the hope that it will be the beginning of a new period after the pandemic, surely the loss of the second largest market and a smaller one, can be anything but a positive development. Especially for some hotel units that operated to a large extent with Russian tourists. The vast majority of hotel units in all provinces operated normally this year and efforts were made to attract tourists from other markets. However, it is not something that can be achieved overnight or without an organized and coordinated effort. To achieve the goal of increasing arrivals from existing and new markets in the coming years, brave decisions and bold reforms are needed. Only in this way will dependence on a few markets be reduced and the consequences in cases of unforeseen events, such as the war in Ukraine, to be more manageable.
Do you think that it is a thorn for tourism in general to be dependent on two or three markets? How can this image be improved?
Obviously it is a great challenge. We are currently seeing it with Russian tourists, we saw it, to a lesser extent, a few years ago with the British. First with the bankruptcies of Cypriana and Thomas Cook and then with the uncertainty that Brexit caused. The task is not easy nor is it achieved overnight. Certainly an increase in the budget of the Deputy Ministry of Tourism is required for promotion and the funds for incentives that will enhance air connectivity. There also needs to be a specialized study of the habits of travellers from the target markets so that we can meet their requirements through continuous adaptation of our own product. We should also take into account the changes that the pandemic has brought to the priorities of tourists. Such as increasing the percentage of those who arrange their vacation on their own instead of through some travel organizer. We believe that this year about 50% of the tourists who will come to Cyprus will be independent travellers. The vast majority of those who will travel to another country, seek quality, emphasize health and safety issues, pursue activities outside in nature. And, most importantly, tourists are now looking for new destinations and new experiences. The meaning of the word 'hospitality' becomes even more imperative and will be the main yardstick for comparison between competing countries.
STEL's long-standing position is that the State and tourist agencies must turn their attention not only to arrivals but also to the revenues and quality of the country's tourism product. Can you get more specific?
In 2001, tourist arrivals in Cyprus were 2.7 million and revenues of almost €2.2 billion. In 2019, when arrivals reached 3.9 million tourism revenues were only €2.6 billion. That is, arrivals increased by about 40% and revenue by just 22%. Cyprus can become a more qualitative destination if we make targeted and methodical use of the comparative advantages of our country. For STEK, quality tourism is not only tourists with large incomes, but primarily tourists with education, in its broadest sense, which will allow the visitor to respect, get to know, appreciate and enjoy our country without burdening the natural and social environment and at the same time to become another ambassador of the country abroad.
Staff shortages and salaries
Asked about the issue of the shortage of labour, Mr. Loizou confirms that it remains a problem, arguing that "STEK sounded the alarm even before the pandemic since then the problem was obvious". He argued that "a radical approach to the issue is needed with good practices and incentives to attract and train the appropriate staff. Both to increase productivity, but above all to improve the quality of service offered. This will further improve employee pay." Asked if the problem of staff shortages exists due to low salaries in the industry, he said among other things that "hotel professions are among the best regulated in Cyprus". "Unfortunately, however, for many years the stakeholders focused on the procedurals of collective agreements and not on the substance of labour issues. Thus, along the way, one of the foundation stones on which the plans for sustainable development of any sector are built was lost - human resources", he concluded.
