Paphos People

Wednesday, April 16, 2008

EUROPEAN tourist destinations, including Cyprus, are facing an uphill struggle in the wake of a plunging housing market and a strong euro in their efforts to entice British holidaymakers to their shores.

“This is a problem that is not exclusive to Cyprus but a problem shared by a number of European countries,” Cyprus Tourism Organisation (CTO) general director Phoivi Katsouri said.

The CTO chief said Britons’ hesitation to travel to Europe was one which concerned the organisation as it strived to retain its UK arrivals numbers.

“It’s easier for them to fly to the US because of the cheaper dollar and so we’re competing against that this year, as well as the economic downturn in the UK and the problems the economy is facing with its housing market and mortgages,” she said.

UK press reports this week said Britons would find holidaying in Europe significantly more expensive this summer after the sterling’s value plummeted 15 per cent against the euro over the past year.

Katsouri said the fact that Cyprus had joined the euro zone was not the problem.

“Our transition from the pound to the euro was extremely smooth with good co-operation from the commercial world including hotels and entertainment venues,” she said.

In fact a number of businesses had rounded down their prices so as to avoid the inflation experienced by the economies of countries such as Greece and Italy when they had adopted the European currency, she said.

“British travellers are generally more hesitant due to what is going on with their own economy. This is something all destinations have to deal with. The fact that the euro is stronger than sterling does influence their decision, but it is not something that only Cyprus is experiencing,” Katsouri said.

The CTO head said the organisation was well aware of the problems British tourists were facing this year and that it was working hard to try and maintain its arrivals numbers.

“We are in constant contact with tour operators to maintain our summer and winter arrivals percentages,” she said.

“We’ve already been in touch with airlines that have shown an interest in more scheduled flights from airports in Manchester, Stansted, Leeds Bradford and other district airports.”

Katsouri said the UK was traditionally the island’s number one tourism market, making up 53 per cent of all arrivals in 2007.

“It’s hard to increase the number of arrivals from the UK, but we try at least to retain our numbers,” she said.

Based on this year’s bookings, 2008 looked set to have a small increase in arrivals from the UK, she said.

“We are hoping to keep the British market at over 50 per cent for both the summer and winter arrivals,” she said.

“In the meantime, the CTO is diversifying its market and tapping into other markets such as Russia and other northern countries, boosting arrivals from those destinations and raising their percentage shares.”

According to a report in The Times, Britons who exchange £100 for euros this year will get €119 at the current exchange rate, compared to €140 a year ago. The exchange rate drop means drinks, food and souvenirs bought abroad will cost more.
A bottle of Heineken in a caf? in France will cost around £3.37 this summer, compared to last year’s price of £2.86, an increase of 51p, the paper said.

In Spain, a bottle of suncream that cost £8.61 last year will cost £14 this year, according to a Post Office survey of commodity prices abroad.

Travellers were also advised to consider holidaying outside Europe.

Managing director of Thomas Cook Financial Service, Mark Nancarrow said: “For those who haven’t yet booked a holiday, then other destinations to consider are the US, Turkey, Egypt and Bulgaria, where your pound will go further.”

Helen Warburton, Post Office head of travel said: “For those willing to travel further afield, long haul destinations such as South Africa, Jamaica and Barbados, where the pound has strengthened in value, will be a good choice.”

The Post Office listed Cyprus, France and Portugal, as the most expensive countries to visit, while Spain, Bulgaria, and Turkey were seen as cheaper choices.



Copyright © Cyprus Mail 2008

I don't think there's any doubt. It will seriously affect numbers.
We as a couple expect our trip to Skiathos to end up costing us £400 more than when we booked it.
I can't imagine a lot of families being able to do it.
Gary

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So close yet so far away