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Annual Report 2004

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Annual Report 2004 A N N U A L R E P O R T 2 0 0 4 CYPRUS TOURISM ORGANISATION CYPRUS TOURISM ORGANISATION www.visitcyprus.org.cy 2 Chairman’s Address 4 Set-up and Structure of Services of the Cyprus Tourism Organisation 8 Financial Position of the Cyprus Tourism Organisation 10 Developments in the Tourist Market 14 Tourism Consultative Committee 14 Research - Studies - Programmes 20 European Union CONTENTS 22 Improvement/Upgrade of the Tourist Product 24 Regulation and Supervision of Tourist Enterprises 28 Promotion of the Cyprus Tourist Product 38 Larnaka Marina 2004 was a difficult year for international tourism. However the industry proved that it has an extraordinary endurance and prospects for further development. The partial recovery of the world economy has contributed to tourism’s performances, despite the tragic episodes in S.E. Asia. The Cyprus Government, the Cyprus Tourism Organisation and the private sector continued, with improved organisation and effectiveness, to implement a tourism strategy which, amongst other things, aims at the strengthening of competitiveness and the repositioning of Cyprus on the World Tourist map. We are confident that despite the difficulties international tourism faces, 2005 will be a better tourist year. Regarding Cyprus tourism, despite its difficulties, 2004 has left behind hopeful messages with increases in arrivals particularly from some of the larger tourist markets such as Germany, Greece and France. With a great deal of effort we have managed to reverse the negative climate in arrivals, which had prevailed throughout 2002 and 2003, and also to limit the reduction of revenues of recent years. The Cyprus Tourism Organisation engaged in promotional activities for our product giving special attention to maintaining contacts with associates abroad and to the Organisation’s participation in the main tourist exhibitions around the world. Our vision, through the Strategic Plan for Tourism, is for our country to become a quality tourist destination that will keep our visitors satisfied with a variety of interests and activities, as well as secure the continuous improvement in the quality of life of the local people. The close, stable and productive co-operation forged during the past two years between the CTO, the Ministry of Commerce, Industry and Tourism, other Ministries and Services, Local Authorities and the Private Sector, have strengthened common efforts in facing various external and internal problems, promptly and effectively. 4 0 0 2 T R O P E R L A CHAIRMAN’S ADDRESS U N N A 2 Recorded results on the Organisation’s activities during the ñ The design and implementation of regional strategies first 14 months of the implementation of the Strategic Plan which aim at showing the special characteristics of are significant and positive. The CTO devotes a large and each district and the mobilisation of all local entities in vital part of its activities to the following: an effort to improve the competitiveness of the tourist ñ The promotion of and support to the effort for the product and its effective promotion. implementation of large and important infrastructure ñ The preparation of a new institutional framework that projects for tourism, which include golf courses, a new will govern the hotel industry was a major issue. This conference centre, casinos, marinas and theme parks. new framework includes updated regulations and a Studies were carried out, and policies and support new category system for tourist accommodation, as measures for attracting the necessary investments well as quality criteria for the hotel industry. were processed. Simultaneously, the CTO prepared incentives for the ñ The development of alternative forms of tourism: withdrawal and upgrading of beds. These were Sports, Cultural, Conference, Religious, Health Tourism previously discussed with all tourist entities in order to and Agrotourism. Specifically, the three-year action ensure their immediate implementation. In the catering plan for Sports Tourism is implemented and for the first sector, a study was being carried out on the new time Cyprus attracted a large number of athletes and category system for Recreation Centres and the football teams for training and important sporting determination of ways for upgrading their services. events. ñ In co-operation with the Human Resource Development ñ The Aphrodite Route was completed and promoted Authority and within the context of the Quality/Value with great success. The European Trail was completed. Strategy, a plan for the operation of a Tourism Cyprus hosted many worthwhile artistic events and Academy was prepared. This is aimed at upgrading the was established as a destination for big, quality events. professionalism and standard of services offered to The “Vakhis” programme for Cypriot traditional cuisine tourists, in order for Cyprus to be included amongst the was successfully promoted. top quality tourist destinations world-wide, which is the most competitive advantage. The Tourism Academy will not only benefit hotel staff but also all professionals encouragement. I would also like to thank the Minister of involved directly or indirectly in the tourism chain, Commerce, Industry and Tourism, Mr. Giorgos Lillikas, for including self-employed professionals. his enthusiastic and continuous support. In addition, I ñ By bringing into effect the Marketing Strategy, we have extend my thanks to the Council of Ministers, the House of upgraded activities and services in all our markets. In the Representatives and all Parliamentary Committees addition to intensifying our efforts in attracting the “Sun involved in tourism matters, the Auditor General and the and Sea Plus” customers, we have engaged in a Accountant General of the Republic, and to all associates systematic effort to promote Special Interest Tourism, of the Organisation from both the Public and Private especially Conference and Sports tourism. Meanwhile, sectors, as well as from the Local Authorities. we co-operated with specialised entities in order to My thanks also go to my associates from our Board of exploit the opportunities for Cyprus resulting from the Directors with whom co-operation has been excellent, to “Athens 2004” Olympics. We also proceeded with a the outgoing Director General, Ms Phryne Michael, the strong regional advertising campaign. In co-operation Directors of Tourism and to all the employees of the CTO, with Greece and Egypt, we have entered the huge who combine their experience and knowledge with vitality, market of China. The first ‘common’ tourist packages enthusiasm and vision, and who constitute the driving for the Chinese market have already been prepared. force behind the Organisation’s efforts to reach its targets. Our aim is to make Cyprus an attractive and top quality year-round destination and, at the same time, to effectively face the challenges posed by increased competition. 3 Cyprus’ accession to the EU facilitates and strengthens our efforts for enrichment, improvement and the further support of our tourist industry. The liberalisation of transport provided a new boost to European tourism to our island, and the future introduction of the European monetary system will contribute to the stability of prices, Finally, I give my assurance that the Cyprus Tourism which in turn will benefit enterprises, consumers, Organisation will continue to work indefatigably and fairly travellers, etc. towards the development of our Tourism, which is the The Cyprus Tourism Organisation has received the prime contributor to our country’s economy and to the messages of the modern era and is constantly readjusting continuous improvement of our quality of life. its targets to accommodate them. A series of activities designed to update legislation, simplify procedures, apply Photis Photiou quality systems, update employment schemes and prepare early retirement plans, will combine to make the Chairman Organisation more modern, flexible and effective. In the new structure proposed by us, an important role will be played by the Department of Strategy and Research, the Department for the Safeguarding of Product Quality, the Department of Promotion and Communications and the Department of Administration. I am absolutely sure that, with this new structure, the Organisation will be in a position to implement its main objective, the Strategic Plan, more effectively. I would like to express my warmest appreciation to the President of the Republic of Cyprus, Mr Tassos Papadopoulos, for his personal interest and The Cyprus Tourism Organisation (CTO) was established AUDITORS and operates according to the provisions of the Cyprus During 2004, the General Auditor of the Republic of Tourism Organisation Law of 1969 - 1999 and the related Cyprus continued to exercise the duties of the CTO’s Regulations on Structure and Terms of Employment and Auditor that were assigned to her by the Council of Administration and Finance. Ministers. The Organisation’s objective, according to the Law, is to organise and promote Tourism within the Republic by using all possibilities and resources available. STRUCTURE OF THE CYPRUS TOURISM ORGANISATION The Organisation consists of the Director-General’s Office and four Departments: Administration, Accounts and BOARD OF DIRECTORS Registry Department, the Tourist Organisation (Planning) According to the provisions of the above mentioned Act Department, Promotion Department and Tourist Services and the Appointment of Public Entities Act (Appointment of Department. The Organisation’s offices
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