Filenews 12 October 2022 - by Adamos Adamou
Despite the many challenges that tourism will face next year, spending on promotion will be slightly reduced, compared to this year's outlay. At least based on the appropriations budgeted for 2023 and recorded in the annual state budget of the following year, as it was submitted to the Parliament. Specifically, based on what was submitted to the Parliament, in 2023 appropriations have been budgeted for enlightenment campaigns amounting to € 17.1 million. In last year's budget, the same appropriations and this sub-group of expenditure amounted to €18.9 million. The total budget of the Deputy Ministry of Tourism, however, for 2023 appears slightly increased, as it provides for appropriations of €53.6 million compared to €52.9 million which was the revised budget of the Deputy Ministry for 2022.
For expenditure on publications and publicity and in the subgroup of expenditure on information campaigns, it is stated that the €17.1 million is not enough. These costs are intended to cover, among other things, cooperation with tourism partners abroad, including airlines. "The cooperation with tourism partners abroad is currently considered as one of the most efficient actions and offers the greatest immediate opportunities for the development of the tourist flow.
The joint actions with the organizers complement the advertising actions of the deputy ministry and have a more direct effect", states the memorandum accompanying the new state budget.
This budget will also cover the "more intensive advertising campaigns in priority markets'', as defined through the new business plan (electronic advertising means)", the "promotion actions of special forms of tourism, such as sports / diving / cultural tourism, rural conference tourism, wedding tourism, cruises, golf, etc.", the production of material for the implementation of the electronic advertising campaign (content) and in addition, among other things, various promotional actions for the promotion of tourism (organization of events, public relations, both at home and abroad in cooperation with bodies of the public or private sector).
As last year, the budget of the Deputy Ministry of Tourism also includes appropriations of €1.7 million for participation in various tourism exhibitions abroad.
Nights again
The budget also reveals the intention of the deputy ministry to repeat the plan to strengthen domestic tourism in the new year as well. It is not specified, however, what period will be covered by the plan that, as in the past, is estimated to subsidize overnight stays of residents of Cyprus in tourist accommodation in the country. The appropriations for various grants in general aimed at upgrading the tourism product are, however, increased in the new budget as they amount to €13.5 million compared to €11.6 million provided for in this year's budget.
The grants of €13.5 million are not enough. The funds are intended, as mentioned, to cover actions as well as financial support plans, for which a decision of the Council of Ministers is required. The plans and actions concern the promotion of all specific forms of tourism and through them will operate, inter alia, the sports tourism incentive schemes, the incentive scheme for the organization of international sports events in Cyprus, the conference tourism incentive schemes, the project to grant events related to the promotion of oenogastronomy and local products organized in Cyprus, the grant scheme to encourage projects for the qualitative and aesthetic upgrade of the beaches and the sponsorship scheme for Municipalities and communities as well as private sector entities for the development of special and alternative forms of tourism (creation or upgrade of services).
POINT OF VIEW
And yet, it is the main pillar
Government appropriations for tourism have always not reflected the sector's contribution to the economy. One would expect that with the creation of the Deputy Ministry of Tourism, things would change, but the budget of the deputy ministry is also at the level of the CTO. Therefore, the even small reduction in expenditure on promotion in 2023 is only surprising. Not only because the sector will have to face another difficult year but because it proved again this year that it is perhaps the main pillar of growth of the economy. In view of this, the presentation of the budget of the Deputy Ministry by the competent Deputy Minister to the Parliament is expected with great interest.
