2020 Cyprus Country Report

We are
currently experiencing
a disastrous
year
for world
tourism, yet in view of the
very effective and quick response
of Cyprus in response
to Covid-19, which provides a
sense of safety to international
patients, we are looking
forward to positive developments
during 2021. We
expect these developments
will be especially focused on
outdoor activities that our
members are engaged in,
such as agrotourism, hiking,
biking, diving, gastronomy
and wine tours, cultural and
religious tours and organisation
of outdoor events which
are becoming more and
more popular in Cyprus.
George Michaelides
President
Cyprus Association of
Cultural and Special
Interest Tourism
plemented its winter 2020 plans for homeporting
from Limassol Port to 13 destinations, a factor
which has contributed to the boost of tourism
numbers. Although many of the cruises follow
the familiar Mediterranean formula, more exotic
routes were also launched such as a sail from
Barbados to Limassol. To strengthen Cyprus’
maritime tourism, a new passenger terminal was
inaugurated in 2018 by port operator DP World
Limassol, with plans to increase passenger traffic
of the port by 35%. Naturally, the coronavirus
pandemic has grounded cruise liner traffic to a
halt and expectations are that cruise visits will
not resume before 2021. Of the 123 cruise ship
arrivals that were expected in 2020 to the Ports
of Limassol, Paphos and Larnaca, more than half
have been cancelled or rescheduled for the end
of the year.
Despite the current difficulties in the cruise
sector, the decision of a leading international
cruise company to anchor its liners in Cyprus
has come as a welcome boost. Six advanced
passenger ships of cruise operator Carnival are
laying up with crew on board in Moni anchorage,
east of Limassol, for the duration of the
Covid-19 imposed restrictions that have halted
cruises worldwide. The ships include Bahamasflagged
Seabourn Encore and the brand-new Sky
Princess flying the Bermuda flag. This followed
an official announcement by the Cyprus shipping
authorities in May offering facilities for cruise
ships to dock in its ports for refuelling, with
operators and shipowners also allowed to bring
their vessels to the island for a ‘hot lay-up’, which
means the vessel is idle but can be mobilised
back into service at short notice. The decision by
Carnival presents significant financial benefits for
the country, and other cruise operators have also
expressed an interest to follow suit.
FOCUS ON THE FUTURE
Cyprus is actively targeting new markets and
reassessing existing ones with a sharp focus on
creating a richer holiday experience emphasising
culture, nature and indigenous heritage. The
country has honed a high-quality hospitality
industry which has been reinforced by the fact
that for decades tourism has consistently been
one of the most formidable economic sectors.
Current efforts to upgrade the country’s image
and further develop various niche areas, such
as rural, health and wellbeing, maritime, cultural,
conference, sports and wedding tourism,
are paving the way towards a more sustainable
future. And these efforts have not gone unnoticed
beyond its borders. FDI has been pouring
in over the last five years with foreign investors
closing multimillion-euro deals – cementing the
fact that tourism-related real estate and infrastructure
continues to be one of the most attractive
investment opportunities in Cyprus. Due to
the interest, the country’s investment promotion
authority Invest Cyprus has set up a dedicated
and specialised unit, TourInvest, to promote investment
opportunities in the tourism and hospitality
sector. In cooperation with the Deputy
Ministry of Tourism and other stakeholders, the
unit focuses on attracting multi-million investment
into large-scale infrastructure projects that
exist in diversified thematic areas.
Cyprus’ vision is to reposition itself in the
global holiday market to provide a more diversified
and ultimately more sustainable product.
The new 2030 National Strategy for Tourism
– which represents the most comprehensive restructuring
of the sector since 1960 – is certain
to bring profound results in diversification and
to keep the sector on its growth trajectory for the
next decades. The goal is to reach 5.15 million
visitor arrivals and 4.4 billion euros revenue
from tourism (including domestic tourism).
Additionally, the strategy aims to improve seasonality
and the regional distribution of tourists,
with the objective of reaching 39% of overnights
during November-April and tripling overnights
in rural areas, by 2030. As the current global
pandemic crisis has revealed, external shocks
can cause severe delays in plans, but Cyprus has
proven its resilience and ability to adapt and
is well placed to achieve its targets and turn its
vision into a reality. n
Sector Profile
Discover more at www.cyprusprofile.com
Country Report CYPRUS 2020 141