Country study May 2010 Détente Consultants CALYPSO STUDY ON SOCIAL TOURISM CYPRUS CALYPSO STUDY ON SOCIAL TOURISM CYPRUS Revision Final Date 2010/03/16 Made by Daniel Gros Checked by Carine Guidali/Marion Doublet Approved by National Contact Point CYPRUS CONTENTS 1. Summary 1 2. Focus on experiences on and mechanisms for international exchanges 1 3. Analysis of the four target tourism markets 2 3.1 Structures and players 2 3.2 Segmentation profile 3 3.3 Existing support systems and/or mechanisms 7 3.4 Demand drivers 8 4. Analysis of the tourism sector 10 4.1 Market trends 10 4.2 Supply of services 10 4.3 Supply of services from a European point of view 11 4.4 Sustainable tourism aspects 11 4.5 Feasibility of social tourism 12 5. Legislative perspectives 13 6. Development of products for social tourism 13 7. Web portals 14 Annexes List of documents Detailed annexes Governmental aspects and policies Trade unions aspects and policies Associations and NGOs aspects and actions CYPRUS 1 1. SUMMARY Social tourism initiatives and programs in Cyprus are historically led by the Ministry of Labour and Social Insurance, who helps people to go on holiday through subsidies. For two years Cyprus Tourism Organization has started to work in the field of social tourism, with the aim at improving citizens’ welfare and giving the right to holiday to all citizens. All the stakeholders have an interest in the further development of social tourism, mainly as a way to increase the flow of tourists and to boost tourism during off-season. In this sense tourism activity suffers from strong seasonality, as an important part of local supply closes from November to March, and flight capacity decreases during off-season. For professional federations, the way to launch initiatives as Calypso is to focus, at least at the beginning, on group trips that will allow logistic organization and the set-up of low-cost packages. Associations and NGOs are concerned by the well-being of their members but their weak financial capacities push them to concentrate their action on the daily citizens’ preoccupations. The intermediary organizations representing the four targets groups are interested in the initiatives that can allow them to go on holiday abroad. No specific destinations, activities or accommodations are really preferred but low-cost offers are necessary. In that sense, the biggest barrier remains the financial difficulties, considering that some of these targets couldn’t afford to go on holiday, even in Cyprus, without Government subsidies. The strong cultural habits of going on holiday quasi exclusively during summer period are also a big challenge for Calypso. The few existing experiences of tourism exchanges are led by trade unions that own their own hotel apartments and organize some members’ exchanges during summer period with other European trade unions. These camps are open, out of summer, to non-members and Cyprus trade unions are willing to offer them in the framework of partnerships. 2. FOCUS ON EXPERIENCES ON AND MECHANISMS FOR INTERNATIONAL EXCHANGES No examples of experiences and mechanisms for international exchanges in the field of social tourism could be found in Cyprus. The main structure involved in social tourism initiatives is the Ministry of Labour and Social Insurance. Inside this Ministry, the Department of Social Welfare provides subsidized holidays for Cyprus citizens. These programs subsidize holidays in Cyprus for employees’ members of the Central Vacation Fund, for insured persons with low income, for people with disabilities and for pensioners. The trade unions provide additional subsidies for their members to go on holidays in Cyprus or abroad. The three main Cyprus Trade Unions organize for their members one-week trips abroad, mainly in Greece due to the cultural proximity and punctually to European countries, and one week cruises in Greek islands. These structures own hotel apartments located in sea or mountain resorts, reserved for their members during summer period and opened to non-members off- season. Some bilateral agreements already exist between Cyprus trade unions and some European ones (Hungarian, Polish, Romanian). All trade unions are open to rent their camps out of summer and to organize exchanges by developing links with other trade unions and social organisations in Europe. The Maltese initiative from General Workers Union of Malta was mentioned as an example of web portal which provides available dedicated supply (see report on Malta). One of the biggest difficulties to set up tourism exchanges off-season will be to encourage and to help people to leave out of summer holiday, as this period is culturally the peak holiday period. Cyprus Tourism Organization is interested in Calypso initiative, mainly for inbound tourism during off-season. The main targets are European senior citizens, and especially Scandinavians. The CYPRUS 2 goal is to extend a very short season and concentrate activity, which perturbs private tourism services providers’ economic running (half of the local accommodation parks’ close during four to six months per year). Private enterprises are also completely opened to welcome Calypso targets off-season and are ready to offer low-cost packages. Tourism suppliers recommend starting with groups (and not individuals), in order to cover travel logistic costs (especially flights, as the capacity in terms of seats strongly decrease off-season) and set up of packages. 3. ANALYSIS OF THE FOUR TARGET TOURISM MARKETS 3.1 Structures and players In Cyprus, various structures play a role in helping people going on holiday. Their fields of intervention concern support of target groups as well as the organization of stays. Ministry of Labour and Social Insurance (see in annex full description): The Ministry of Labour and social insurance is the main structure helping people to go on holidays • The Department of Social Insurance Services of the Ministry of Labour and Social Insurance is responsible for the administration of the Annual Holidays with pay Law (Law 8 of 1967-2005 and Regulations): - Program of subsidized holidays of employees members of the Central Vacation Fund (funded through employer’s contribution of 6% on the salaries) - Program of subsidized vacations for insured persons with low income - Program of subsidized vacations of people receiving public aid from the Government • The Social Welfare Services provides schemes for subsidizing the elderly and the disabled according to article 24 of Public assistance Legislation - Program of subsidized vacations of people with disabilities - Program of subsidized vacations of pensioners The detail of these programs is explained is chapter 3.3. Cyprus Tourism Organization – KOT Cyprus Tourism Organization is a semi-governmental structure in charge of monitoring the development of Cyprus tourism destination. Dealing with Ministry of Labour and Social Insurance, KOT has been involved in social tourism only for two years and try to give equal opportunity to all citizens to go on holidays. Nevertheless social tourism is not among the priorities and no significant resources are dedicated to it. Other players involved in helping people to go on holidays in Cyprus are trade unions . They are usually organized in several dedicated departments, as workers, young, women, and each department organizes its own tourism initiatives. Main trade unions of the island are: • SEK Cyprus Workers Confederation (see in annex full description) is the biggest trade union in Cyprus (only independent trade union) with 68 member associations representing 72,000 individual members, mainly in the private sector. • Pancyprian Federation of Labour – PEO (see in annex full description) is an umbrella organization for trade unions with 68,000 members. PEO is the coordinating Federation of its nine affiliated trade unions. • Pancyprian Public Servants Trade Union – PASYDY (see full detail in annex) is a trade union of all public servants, employees of the central government and has also in its ranks branches of employees of semi-state authorities and of foreign governments (15,000 members). Trade unions expanded their activity to fields of members welfare with establishment of institutions and introduction of activities which are complementary to the trade union activity connected with the members' professional problems. These additional activities and services are: CYPRUS 3 medical insurance, nursery, children's summer camp, seaside and mountain summer and holiday centres for members and families. A number of associations dedicated to specific targets and informal agencies are lobbying to promote the rights of their members in the society and are involved in tourism initiatives and programs. Their main actions regarding tourism consist in organizing trips in Cyprus or abroad by negotiating special packages and discounts for groups (see annex). • Associations and NGOs: - Disabled: the national organisation representing disabled people at the European level is The Cyprus Confederation of Organisations of the Disabled (CCOD) which represents all disabled people’s organisations in Cyprus, as the Pancyprian Organization for disabled persons, the Pancyprian Parents Association for People with Mental Handicaps- PASYGOKA. - Families: Pancyprian Organization of large families – POP, Pancyprian Organisation of Families with 3 children. - Seniors: Pancyprian Federation for the Welfare of the Elderly – POSEI. • Informal agencies: National Anti-Poverty Network, Education and Information Technology