You are here

Rough times for tourism

30/07/2009 07:03
The island’s hotel industry goes through rough times; the hotel owners announced that they will proceed with dismissals while hotels in areas such as Polis Chrysohous remain closed in July. The market circles warn for worse days to come, since many hotels will close for the winter season. They believe that expensiveness is the biggest problem.

The representatives of the hotel employees are in alert due to indications for mass dismissals. Problems are more intense in Paphos and deliberations with the hotel owners are already in progress.

General Secretary of PEO Hotel Employees Trade Union, Lefteris Georgiades said that two hoteliers have already sent letters of dismissal to the staff. One of them supports that dismissals are attributable to the drop in his income from tourism.

General Secretary of SEK Hotel Employees Trade Union, Pericles Pericleous sounded the alarm on the future of the hotel employees during winter since the hotel owners threat that they will close almost all hotels.

The representatives of the employees insist that the crisis will not be faced with staff dismissals. They have scheduled certain meetings with the Labour and Commerce Ministers to find support.

On the other hand, the tourist circles talks about a drop in tourist arrivals and revenues in July and expect unemployment to rise.

Chairman of the Association of European Tour Operators, Akis Kelepesiis said that according to indications, the drop in tourist arrivals in July will stand at 15%. He also anticipates that things won’t change in August and September, while revenues of more than €300 million will be lost this year.

The impacts on economy from the crisis in the hotel industry will be chain, Chairman of Tourist Agents’ Association, Victor Mantovanis stated. “The forecasts for July show that this year will be difficult for the tourist industry and the economy in general”, he said.

“The decline in British arrivals will be of 20% and in Russian of 10-12%”, he added.

Mr. Mantovamis noted that this slump is linked not only to the crisis but also to the fact that Cyprus is no longer an attractive destination due to its high prices. “Everything is more expensive; the flights, the airports, the hotels, the restaurants, the taxis, water, coffee. The government should have given incentives to the hotels in order to remain open during winter”, he said.

Similarly, PASYXE General Manager, Zacharias Ioannides talked about a drop in tourist arrivals and revenues of 15% and 24% respectively in July.

Mr. Ioannides appealed for cooperation between the private and public sector to deal with the socio-economic impacts from the crisis.

He also urged the government to bring back the measures for the support of the tourist industry in 201q0 too.

“The hopes for last-minute reservations have been scattered because those tourists select cheap destinations and Cyprus is not among them”, he concluded.