PRESIDENT Demetris Christofias yesterday called on anyone attempting to rock the boat in relations between Cyprus and Russia to “think twice” about the impact their actions would have on the island.
Addressing the annual general meeting of the Cyprus Hotels Association (PASYXE), Christofias said he had become aware of attempts to undermine relations between the two countries. He did not elaborate.
“To those certain individuals who purposefully or inadvertently are undermining these relations, they should think twice about the economic and political consequences their actions may have,” said the President.
Apart from being the biggest emerging market when it comes to tourism, Russia is also reportedly the government’s first choice in securing a bilateral loan to bail out the economy.
Christofias said although figures from the UK and Germany had been disappointing in the first half of the year, they were improving. Arrivals from Russia, he said increased 50 per cent over the past two years due to the great relations between the two countries.
On his address, PASYXE chairman Haris Loizides, said Cyprus was still considered an expensive destination without proof of being a qualitative one. He called for immediate measures to boost the industry.
“Cyprus’ tourism industry has been living under crisis conditions for a decade now,” said Loizides. “However, the generalised crisis we are experiencing now, despite its negative impact on businesses and workers, could be an opportunity to do all those things that we have been failing to do for so many years, purely because the conditions in other sectors were rosy and counterbalanced the losses from tourism.”
Loizides said that while internationally, tourist arrivals were expected to reach a billion – from 700 million in 2000, in Cyprus, even during theoretically good years, arrivals dropped by 11.3 per cent (300,000 tourists) and revenue by 19.5 per cent (€400 million) compared to 2001.
He added that steep electricity bills weren’t helping. “When a household that last year paid €100 for electricity is rightfully protesting because now it is being asked to pay €180 or even €200, imagine what happens with a hotel, which used to pay €60,000, €80,000 and even €100 thousand,” said Loizides.
Citing central bank figures, the PASYXE head said hotels and restaurants owed an estimated €2.6 billion to banks, which is double to the amount owed 10 years ago.
In 2011, the year closed with a 10 per cent increase in tourist arrivals and 12.5 per cent rise in tourism-related revenue.