ANNUAL REPORT 2008 MISSION

Transcription

1 ANNUAL REPORT 2008 MISSION The Cyprus Tourism Organisation was established and operates under the provisions of the Cyprus Tourism Organisation Law of and the related Regulations on Structure and Terms of Employment and Administration and Finance. The Organisation s objective, according to the Law, is to organise and promote Tourism within the Republic by using all possibilities and resources available. 1

2 CONTENTS 1) Chairman s message 2) Director General s message 3) Management/ Structure of services 4) Developments in the International Tourism Market Α. Major Developments in Cyprus Β. Development of Tourism Indicators in ) Implementation of the Strategy for Tourism Development A. Tourism Development Strategy B. Regional Strategies C. CTO activities towards the implementation of the Strategy 8) Special Interest Tourism - Strategy and Marketing Rural Tourism 2. Nautical Tourism-Marinas 3. Casinos 4. Cultural Tourism-Cultural and Artistic Events-Routes 5. Development of Thematic Packages 6. Religious Tourism 7. Nature Tourism 8. Sports Tourism 9. Health Tourism (Medical Tourism and Wellness and Pampering) 10. Conference and Incentive Tourism 11. Thematic Parks and Thematic Centres 12. Weddings and Honeymoons 13. Language Travel 6) European Union A. European Tourism Forum B. Tourism Advisory Committee Tourism Unit C. National Programme of Action for the Lisbon Strategy D. Programming period E. Programming period F. European Bureau of Cyprus G. Competitive European Programmes 7) Marketing A. Promotion of the Cyprus Tourist Product B. Promotion Policy C. Advertising D. Markets E. Promotional Activities Participation in Travel Exhibitions Presentations / Events / Conferences 2

3 Internet Print and audiovisual media 9) Regulation and Supervision of Tourist Enterprises A. Regulation & Supervision of Tourist Enterprises B. Classification of Hotel Units & Approval of Plans Γ. C. Hotel Rates & Hotel Guide D. Travel and Tourism Agencies E. Tourist Guides F. Catering & Entertainment Establishments G. Hotel Training H. Employment in the Hotel Industry I. CTO Inspectors 10) Financial Statements Balance Sheet 11) Events / Social Activities CTO CTO Offices in Cyprus CTO Offices Abroad 3

4 1. Chairman s message It is with great pleasure that I preface the Annual Report of Cyprus Tourism Organisation for the year Tourism continues to be of top priority for our country as a mainstay for the Cyprus economy, offering peripheral and multiplicative benefits for the developmental course of the country, increasing the incomes and contributing to the improvement of our living standards. Cyprus Tourism Organisation is committed to introducing a contemporary tourism model. We work methodically and creatively at the same time for the successful implementation of the tourism strategy, in respect to enrichment, upgrade, differentiation and specialization of the tourist product, with the development of specific thematic of alternative tourism. As a destination that targets in the qualitative distinction, we placed emphasis in the qualitative upgrade of all the aspects of our product. The protection of our natural and cultural heritage is the overriding concern that underlies all our actions. As far as our strategy is concerned in the promotion sector, we established a new communication policy, characterized by increased extroversion and intensified presence and participation in the international tourism arena. We achieved to offer a new dynamic in the promotion sector with focused efforts, new approaches in our contacts and our communication network and also with innovative programmes of technological applications. The year 2008 was the starting point of the consequences of the financial crisis in the economies of the countries. As a result, it was inevitable for the tourism economies to remain unaffected. As an Organisation we acted hastily, prompt and decisively in order to face the situation, with a special action plan and specific, targeted and specialised activities for the reversal of the slow down of the economy. With a high esteem of responsibility and vision, with collective support and succour by the government and the society, we will continue undistracted the intensive effort and the hard work to shield our tourism. Our country is worth it. Mr. Panos Englezos CHAIRMAN 4

5 2. Director General s message BOARD OF DIRECTORS Panos Englezos Andreas Panayides Vassoula Zachariadou Loizos Kartoudes Kyriakos Kokkinos 5

6 Leontios Vryonides Yiannis Kouis Georgios Mintis Cleopatra Mylona Michaelidou MANAGEMENT / STRUCTURE OF SERVICES 1. Board of Directors According to the provisions of the Cyprus Tourism Organisation Law and the Appointment of Public Entities Act (Appointment of Board of Directors) 149/1988, the CTO is administered by a nine-member Board of Directors. The members of the Board of Directors until 31/12/08 were the following: CHAIRMAN: Mr. Panos Englezos Businessman VICE-CHAIRMAN: Mr. Andreas Panayides Former Educator MEMBERS: Mr. Leontios Vryonides Economist Mrs Vassoula Zachariadou Purchase Manager Cybarco Ltd Mr. Loizos Kartoudes Businessman Mr. Kyriakos Kokkinos Director General ΙΒΜ Cyprus Mr. Yiannis Kouis Senior Lecturer Mr. Georgios Mintis Lawyer Mrs. Cleopatra Mylona Michaelidou Banker Economist 6

7 2. Board of Directors meeting During 2008, the Board of Directors held 41 meetings and decided on a number of tourist policy related issues, approval of the 2008 Budget of the Organisation, etc. The Personnel Committee and the Tenders Committee, to which the Board had transferred its corresponding responsibilities for the better and faster implementation of the CTO matters, held 16 and 25 meetings respectively, during which they discussed and took decisions upon issues falling within their competence. 3. Director General During 2008, the Director General of the Organisation was Mrs. Phoebe Katsouris. 4. Structure of the Cyprus Tourism Organisation The structure of the Organisation consists of the Directors-General s Office and four Departments: the Administration, Accounts/Financial Services and Registry Department, the Strategy Department, the Marketing Department and the Quality Assurance Department and operate as follows: 5. The Head Office of the Organisation is based in Nicosia. Tourism directors: Mrs Annita Dimitriadou Head of the Department of Administration, Financial Services and Registry until 17/04/08 and from 18/04/08 Head of the Department of Strategy, Mr Michael Metaxas, Head of the Department of Marketing and Communications, Mr Lefkos Fylaktidis, Head of the Department of Quality Assurance. 6. The Regional Domestic Services consist of: a) Tourist Information Offices. During 2008 thirteen Information Offices were in operation. (b) Inspectors Offices. During 2008 operated six Inspectors Offices. (c) The Larnaka Marina. 7. The Overseas Regional Services. During 2008 the Organisation operated 22 offices, in London, Dublin, Frankfurt, Berlin, Paris, Stockholm, Athens, Thessalonica, Milan, Zurich, Brussels, Amsterdam, Vienna, New York, Moscow, St. Petersburg, Dubai, Tel Aviv, Helsinki, Budapest, Prague and Warsaw. 8. Personnel 7

8 On December 31st 2008 the CTO personnel members (permanent, temporary, on contract, both local and in offices abroad) were members were employed at the Head Offices, 79 at the Local and Regional Offices and 77 at the Overseas Regional Offices. CYPRUS TOURISM ORGANISATION STAFF POSTS AS AT DIRECTOR GENERAL S OFFICE HEAD OFFICE LOCAL OVERSEAS TOTAL SECRETARIAL 5 5 INTERNAL AUDIT 5 5 ADMINISTRATION DEPARTMENT ADMINISTRATION REGISTRY FINANCIAL SERVICES/ACCOUNTS STRATEGY DEPARTMENT PLANNING TECHNICAL SERVICES 8 8 LARNAKA MARINA MARKETING DEPARTMENT QUALITY ASSURANCE DEPARTMENT TOTAL Training & Development Centre During 2008, the Training & Development Centre, established and operated within the premises of the Organisation, continued offering in-house training for the staff, as well as training for the tourism professionals. CTO had been organising school visits to its Training Centre during which officers presented the development and importance of tourism in Cyprus. 7. Implementation of the ERP System in Accounting In 2008, the study for the application of the ERP System continued in the Accounting/Financial Services department. 8. Modernization Law CTO 8

9 In 2008 the Internal Committee continued to work on the formation of the preliminary framework for the new Regulations about Structure and Terms of Employment and also the new Administration and Finance Regulations. 9. Health and Safety According to the Legislation in force a committee was formed, that carries out all the security and health issues of the Organisation. A health and safety officer was also appointed according to the relevant legislation. 10. Introduction of the new e-oas The Registry of the Organisation introduced the new electronic archiving system e-oas (electronic office automating system). 11. Legal Advisor Mr. Christos Triantafyllides continued for the year 2008, offering his services as the Organisation s Legal Advisor. 12. Auditors The General Auditor of the Republic of Cyprus continued to exercise the duties of the CTO s Auditor for 2008, as they have been assigned by the Council of Ministers. 9

10 CTO STRUCTURE BOARD OF DIRECTORS DIRECTOR GENERAL GENERAL ADMINISTRATION INTERNAL AUDITOR ADMINISTRATION DEPARTMENT MARKETING AND COMMUNICATION DEPARTMENT STRATEGY DEPARTMENT QUALITY ASSURANCE DEPARTMENT ACCOUNTS OFFICE OVERSEAS OFFICE TECHNICAL SERVICES TECHNICAL SERVICES REGISTRY OFFICE LOCAL INFORMATION OFFICES LARNAKA MARINA INSPECTORS OFFICE Board of Directors Secretariat Advertising Implementation of Strategic Plan Personnel Issues Public Relations Studies/Surveys Tenders and Contracts Print and Audiovisual media of Promotion Regional Strategies Preparation and implementation of legislation regarding hotels and other tourist accommodations, recreational establishments, tourist and travel agencies and tourist guides Legal Issues Hospitality Tourist Development Planning Inspection of Tourist Enterprises Computerization Information Technology International tourist exhibitions Planning and execution of projects of tourist infrastructure Inspectors service Economic services Press and Public relations issues Tourism Advisory Committee Secretariat Licensing for the operation of tourist enterprises Study Center - Human Resource International Organisations Consideration of hotel and tourist accommodation plans Studies for the construction of new hotel units and recreation centres Organisation and operation of the Registry Organisation and supervision of tourist information offices Larnaka Marina Management Licensing of tourist guides E-Marketing Artistic and cultural events Implementation of quality systems Organisation of seminar conferences Statistics Information Centre 10 European Union

11 4. DEVELOPMENTS IN THE INTERNATIONAL TOURISM MARKET According to data of the World Tourism Organisation as published in the UNWTO World Tourism Barometer (Volume 7, No. 2, June 2009), the international tourist flow in 2008 increased by 1,9% as compared to 2007, reaching 922 million tourist arrivals as against 904 million in Tourist traffic in Europe remained at about the same level in 2008 as in 2007 (487,9 million tourist arrivals in 2008 as against 487,3 million in 2007). Especially as far as the Southern / Mediterranean European region is concerned, tourist arrivals rose marginally by 0,6% (from 177,9 million in 2007 to 178,9 million in 2008). Most regions of the world experienced a slight increase in tourist arrivals in 2008, with the exception of the Middle East, where a significant increase of 18,2% was achieved. Rates of increase higher than the global average were also recorded in Africa (4,1%) and the Americas (3,0%), while an increase lower than the global average was observed in Asia and the Pacific countries (1,2%). As far as market share is concerned, Europe held on to its dominant position in the global tourist market despite experiencing further decrease in market share (52,9% in 2008 versus 53,9% in 2007). Asia and the Pacific countries and the American Continent rank second and third respectively, with the share of both remaining almost constant (20,1% in 2007 and 20,0% in 2008 for the former, 15,8% in 2007 and 16,0% in 2008 for the latter). Also, always according to the same source, international receipts from tourism in 2008 were estimated at US$944 billion (or 642 billion). Europe received about half of the global pie (50,2%) with US$473,5 billion (or 322 billion), Asia and the Far East came second with a 22% share (US$207,6 billion or 141,1 billion) and the Americas third with a 20% share (US$188,1 billion or 127,9 billion), followed by the Middle East (4,8% share, US$45 billion or 30,6 billion in receipts) and Africa (3,2% share and revenue of US$30,2 billion or 20,5 billion). INTERNATIONAL TOURIST ARRIVALS ARRIVALS (IN MILLION) CHANGE % 2008/2007 World ,9% Europe 487,3 487,9 0,1% Asia and the Pacific 181,9 184,1 1,2% Americas 142,9 147,2 3,0% Africa 45,1 47,0 4,1% Middle East 47,0 55,6 18,2% *Based on data of the UNWTO World Tourism Barometer, Volume 7, No 2, June

12 A. MAJOR DEVELOPMENTS IN CYPRUS According to the results of the Passenger Survey conducted by the Statistical Service of the Republic of Cyprus upon the arrival of passengers in Cyprus, tourist arrivals in 2008 recorded a slight decrease of 0,5% as against 2007 ( in 2008, in 2007). Significant rates of increase were observed only in February (11,2%) and June (8,8%) and lower ones in March and November, while varying rates of decrease from 2,2% to 3,8% appeared in the remaining months. As far as arrivals to Cyprus from specific main markets are concerned, the U.K. market displayed a 3,1% decrease and consequently its market share fell to 51,7% in 2008, down from 53,1% in In the other five markets with the largest market share, strong increase rates were recorded in the arrivals from Russia (24,0%) and Norway (18,8%). Sweden displayed a smaller increase (3,3%), while the Greek and German markets performed worse than in 2007 (decrease of 4,6% and 4,9%, respectively). As far as the performance of other markets is concerned, some of them achieved impressive growth rates like Finland (50,7%), Romania (40,1%) and Poland (22,1%), while others achieved lower, but still healthy increase rates like Denmark (10,0%), Belgium / Luxemburg (10,4%) and Austria (9,3%). However, a number of markets were also in the negative such as Ireland (34,1%), France (12,8%), Italy (12,1%) and the U.S.A. (11,1%). Russia firmly holds the second place in terms of arrivals contribution with over arrivals, while Greece and Germany follow in the third and fourth positions with about the same number ( ). Sweden follows suit with arrivals, and Norway is a distant sixth with about arrivals. According to the results of the Passenger Survey 2008 conducted by the Statistical Service of the Republic of Cyprus upon the departure of tourists from Cyprus, the per person expenditure of tourists in Cyprus in 2008 fell by 7,3% in nominal terms in comparison to 2007 (from 769 to 746). The average daily expenditure of tourists was in fact reduced by more (8,1%, from 77 to 74), as the average length of stay rose slightly by 0,9% (from 10,0 days to 10,1). 12

13 DIAGRAM Tourist Arrivals Revenue from tourism ( mil.) Tourist Arrivals Revenue from tourism Year 0 B. PERFORMANCE OF TOURISM INDICATORS IN 2008 The performance of the main tourism indicators in 2008 was as follows: TOURIST ARRIVALS The arrivals of long-stay visitors (tourists) decreased to in 2008 as against in SEASONAL PATTERN OF TOURISM The distribution of tourist arrivals over the four quarters of 2008 was as follows: January-March 9,5% (the respective percentage for 2007 was 9,1%), April-June 31,7% (30,8% in 2007), July-September 40,6% (41,7% in 2007) and October-December 18,2% (18,4% in 2007). ARRIVALS OF SAME DAY VISITORS Arrivals of same-day visitors (excursionists) in 2008 totalled , recording a decrease of 11,1% in comparison to the corresponding 2007 figure ( ). More specifically, the arrivals of cruise ship visitors were reduced by 10,3% (from in 2007 to in 2008) and of same-day tourists by 37% 13

14 (from in 2007 to in 2008), while the arrivals of transit visitors increased slightly by 3,2% (from 468 in 2007 to 483 in 2008). Cruise ship visitors in 2008 originated from Israel (25% of the visitors), Germany (16%), the United Kingdom (14%), Italy (13%), the U.S.A. (9%), France (8%) and the rest from other countries. INCOME FROM TOURISM Gross receipts from tourism in 2008 (including receipts from same-day visitors) were estimated at million, recording a decrease of 3,6% in nominal terms over the 2007 receipts ( million). According to preliminary data, revenue from tourism is estimated to have accounted for 10,7% of the Gross Domestic Product of Cyprus for 2008, down from 12,0% in DEVELOPMENTS IN THE SUPPLY OF HOTEL BEDS The total hotel bed supply in licensed accommodation units fell from beds in operation on , to on Of the hotel beds that had been in operation at the end of 2008, belonged to 225 classified star hotels, to 209 classified hotel apartments of all classes, to classified 22 tourist villages A and B class, and the remaining to classified tourist villas, tourist apartments, furnished apartments, traditional houses, hotels without star, guest houses and camping sites. 5-1 STAR HOTEL BED CAPACITY * 4* 3* 2* 1* TOTAL BED CAPACITY IN HOTEL APARTMENTS AND OTHER ACCOMMODATION HOTEL APARTMENTS A B C TOURIST TRADITIONAL YEAR DELUXE CLASS CLASS CLASS VILLAGES HOUSES OTHER* TOTAL , *Tourist Apartments, Furnished Apartments, Tourist Villas, Hotels Without Star, Guest Houses and Camping Sites. GUESTNIGHTS IN TOURIST ACCOMMODATION ESTABLISHMENTS Guestnights in all accommodation categories in 2008 remained at the same level as in 2007, reaching a total of as compared to in The performance of individual areas varied only slightly in comparison to 2007 (from 0-3%). Lefkosia and Agia Napa performed somewhat better than 2007, Paralimni and Lemesos were at about the same levels and the remaining areas fared slightly worse. 14

15 Guestnights of foreign tourists in all categories of licensed accommodation establishments in 2008 remained at the same levels as in 2007 ( in 2008 and in 2007). The guestnights of Cyprus residents in all categories of licensed accommodation establishments were marginally reduced by 0,8% (from in 2007 to in 2008). ARRIVALS AT TOURIST ACCOMMODATION ESTABLISHMENTS Arrivals at licensed accommodation in all categories in 2008 were slightly reduced in 2008 as compared to 2007 (by 1,2%, reaching as against in 2007). Agia Napa, Lefkosia and Lemesos displayed an increase ranging from 2-3%, Larnaka remained at about the same levels as in 2007 and Pafos, Paralimni and the Mountain Resorts recorded a decrease in the vicinity of 3-5%. Arrivals of foreign tourists in all categories of licensed accommodation establishments fell slightly by 1,3% in comparison to 2007 ( in 2008, in 2007). In parallel, arrivals of Cyprus residents in all categories of licensed accommodation establishments also fell by 1,0% (from in 2007 to in 2008). AVERAGE NET BED OCCUPANCY RATES The average net bed occupancy rate in tourist accommodation establishments is obtained by dividing the number of guestnights (as declared by the management of every tourist accommodation unit) by the bed capacity of each unit, multiplied by the actual number of its days of operation during the year in question. The average net bed occupancy in all tourist accommodation establishments in 2008 rose by about 1,6 percentage points as compared to 2007 (from 59,59% in 2007 to 61,19% in 2008). As far as classified star hotels are concerned, their average net bed occupancy rate in 2008 rose to 60,50% as compared to 59,45% in 2007, thereby recording an increase of about 1,0 percentage unit. 15

16 5. IMPLEMENTATION OF THE STRATEGY FOR TOURISM DEVELOPMENT A. TOURISM DEVELOPMENT STRATEGY The revised Strategic Plan for Tourism Development was based on the findings of a relevant study conducted by an Irish consultancy firm. This revised plan reaffirmed the validity of the chosen strategic direction and pinpointed the necessity of focusing on priority actions that are key success factors able to produce results by 2010, in the areas of product development, marketing and quality / value for money. In 2008, the CTO intensified its communications with all the competent Ministries, identifying the priority projects which have to be promoted by 2010 and asking them to include these projects in their strategic planning and budgets. In parallel, the CTO also assumed the role of a catalyst, attempting to expedite procedures between the private and the public sector. Additionally, the Organisation continued its efforts towards the implementation of specific actions and projects included in the Strategic Plan, as described in other parts of this Annual Report. B. REGIONAL STRATEGIES Five Regional Companies for Tourism Development and Promotion of Lefkosia, Lemesos, Larnaka, Pafos and the Mountain Resorts, which are private non-profit entities, have been established. The establishment of the sixth one, namely the Ammohostos Regional Company, has been agreed upon and it is under way. These Companies have received guidance towards the setting up of their operations and the undertaking of initiatives towards the implementation of the regional Action Plans which were prepared for each area within the framework of the respective Regional Strategies. Such initiatives will cover the areas of product development, marketing, quality/value for money as included in the Strategies and Action Plans, as well as the organisation of events. Within the framework of its policy of supporting the Regional Companies, the CTO funded a series of promotional activities undertaken on the basis of their annual marketing plan for 2008, contributed towards the coverage of the salary of the company officers and supported events which were organized or sponsored by the Regional Companies. C. CTO ACTIVITIES TOWARDS IMPLEMENTATION OF THE STRATEGY I. STUDIES - RESEARCH 16

17 JOINT RESEARCH COOPERATION BETWEEN CTO AND ERC The Organisation maintains a research co-operation with the Economic Research Centre of the University of Cyprus. This has been renewed for a further three-year period. Among other projects, as part of this research agreement, an annual sampling survey on the level of satisfaction of tourists and their evaluation of the Cyprus tourist product is being conducted. I. RESEARCH - STUDIES Within the framework of the strong emphasis which the Organisation places on research and development, the following research projects / programmes have been promoted in 2008: 1. Research Programme for the Creation of a Databank and the Preparation of Statistical Time-series Within the framework of the joint research programme of CTO and the ERC, a documentation centre with relevant tourism bibliography and a databank containing time-series on tourism statistics and data are being developed. 2. Research Programme for the Introduction of a Tourism Satellite Accounts System A Tourism Satellite Accounts System (TSA), which allows for a more precise estimation of the contribution of the tourist sector to the economy, has been developed on a pilot basis. The implementation of the TSA comes within the purview of the Statistical Service of the Republic of Cyprus and it is being promoted in co-operation with the Central Bank of Cyprus and the CTO. 3. Survey for the Level of Satisfaction of Tourists and their Evaluation of the Cyprus Tourist Product The Survey is conducted on a continuous basis by a private market research firm, it is divided in four phases (each phase corresponding to a quarter of the year) and results are issued on a quarterly basis. Within its framework, personal interviews of tourists upon their departure from Cyprus are being conducted, so as to collect feedback on the satisfaction derived from their experience with the Cyprus tourist product. The data will be used to develop a Satisfaction Barometer, which will allow for the monitoring over time of the Strategic Plan target for the qualitative upgrade of the tourist product. A total of interviews were conducted in 2008, covering a total sample of persons and tables containing the results of the survey, brief reports for every phase and a full report containing the unified results of the whole year have been prepared. 17

18 The following studies were conducted during 2008: 1. Site Selection and Feasibility Study for the Limassol Conference Centre. 2. Study for the Establishment of a Convention Bureau in Cyprus. 3. Compilation of Statistical Data and Market Research on Conference Tourism. In 2008 the Organisation invited tenders from private sector consultants and researchers and / or made preparations for the execution of the following studies: 4. For the supply of services for the execution of market research and consultancy study for the development of the tourist markets of U.A.E, Kuwait and Bahrain, the Organisation prepared tender documents, invited tenders and evaluated the tenders submitted. Creation of a System of Indicators for the Monitoring of Sustainability in Tourism Development Based on available data, a number of sustainability indicators have been estimated, and are being regularly monitored. 4. INFORMATION CENTER Within the framework of the efforts of the Organisation to become an information and data bank for the tourism sector, the CTO Information Centre was established to serve that role. The creation of the CTO Information Center aims, among others, at the following: 1. Enhancing, through education and supply of information, the professionalism of the employees of CTO, the tourist industry at large, and in general of all tourism stakeholders. 2. Providing information to internal and external users in a faster and more effective manner. 3. Facilitating research. 4. Developing tourism conscience. The Information Center collects information and research material relating to travel and tourism directly or indirectly, such as books, research/studies, plans, statistics, catalogs, manuals, guides, maps, legislation, government publications, CD Rom/video/slides/tapes and other audiovisual aids, publications of the Cyprus Tourism Organisation and other National Tourism 18

19 Organisations, the World Tourism Organisation, the European Commission and other local and international organisations. STRATEGY AND MARKETING SPECIAL INTEREST TOURISM The Strategy for Tourism Development calls for repositioning Cyprus as a sustainable tourism destination which offers the visitor a multitude of tourist products beyond the Sun and Sea one. Within this framework, a Special Interest Tourism Section has been created within the Organisation, in order to implement a well-designed and targeted policy for the development of the specific forms of tourism, through an integrated marketing plan and a concerted communication policy. An account of the main developments around the creation and promotion of specific special interest products follows below. 1. RURAL TOURISM (AGROTOURISM) Rural Tourism is considered a high priority special interest product, which revolves around nature and culture. This product capitalizes on the cultural and environmental diversity of the island, thus contributing towards the repositioning of Cyprus as a quality tourist destination. The Organisation coordinates the actions of all stakeholders involved, towards the development and promotion of an integrated rural tourism product. (i) Hotel Beds in Traditional Buildings in the Countryside On , 118 traditional accommodation units with a total capacity of 927 beds had been in operation in 49 villages of the Cypriot hinterland. Additionally, 30 more tourist accommodation units with a total capacity of beds had been in operation in nine villages of the Mountain Resorts area. (ii) Promotion of the Agrotourism Programme The Organisation promoted the Agrotourism Programme through television and radio programmes, articles in the local and international press and presentations in workshops, events and European conferences. (iii) The Cyprus Agrotourism Company The Cyprus Agrotourism Company, which was established after a CTO initiative, continued the operation of its office, central reservations system and website ( that enables online bookings. In 2008, the 19

20 membership base of the Company increased through the addition of new members. As far as promotional activities are concerned, the Cyprus Agrotourism Company participated in the tourist fairs World Travel Market in London, Tour Natur in Dusseldorf and ITB in Berlin. In the beginning of the year, it also published its new Traditional Holiday Homes Guide. 2. NAUTICAL TOURISM MARINAS I. LARNAKA MARINA In 2008 the Marina operated as in previous years under conditions of acute lack of free berthing space. The demand of berth spaces by both Cypriot and foreign yacht owners has been very strong. At the end of 2008 a total of 546 vessels were at the Marina. 365 of these vessels (66,8%) were of Cypriot ownership and 181 (33,2%) of foreign ownership. 642 arrivals and 623 departures of vessels were recorded in 2008 as against 617 arrivals and 558 departures in ,1% of the vessels in the Marina on were between 0 and 10 metres long, 40,9% between 11 and 15 metres, 6,4% between 16 and 20 metres, 3,1% between 21 and 26 metres and 0,4% over 26 metres long. The main services offered at the Marina are the following: Facilities for the safe mooring of vessels and their connection to electricity as well as water supply. Services are being obtained from the private sector for the gate control and security of the Marina area. Lifting / launching and repair / maintenance of vessels by private companies. Ramp for the lifting and launching of small vessels. A fire-fighting network with separate fire extinguishing terminals connected to a central system of pressurised water. A waste suction system for the removal of waste from the vessels. Towage and rescue service. Provision of naval information through a VHF marine radio. Collection and removal of refuse, used engine oils, toxic wastes and other vessel materials. Internet connection (wireless, WiFi cards). Provision of weather information and broadcasting of severe weather warning 20

21 bulletins in collaboration with the Meteorological Service. Provision of general information regarding the Marina and Cyprus in general. Direct international telephone connection. Provision of postal, fax, and internet connection facilities. Common utility building offering amenities such as toilets, showers, laundry machines and mini-storage facilities. II. DEVELOPMENT OF NAUTICAL TOURISM The negotiations for the development of a marina in Lemesos have been completed and the relevant contract with the successful bidder was signed. The studies for the issue of all the permits required by law are being prepared. As far as the Agia Napa marina is concerned, negotiations with the interested bidder are expected to take place, while works on the road infrastructure linking the marina site with the road network of the area have already commenced. In Larnaka, the local marina and the Larnaka port are promoted jointly as a single project to potential strategic investors, while in Pafos, the evaluation of the tenders submitted for the development of a marina has been completed. Additionally, improvement and extension works are being carried out in various fishing shelters and small ports along the coast of Cyprus, while the construction of spaces allowing short term berthing of private vessels is also under way. III. BLUE FLAG PROGRAMME In 2008, "Blue Flag" awards were extended to 52 organised beaches in 15 municipalities and communities throughout Cyprus. Within the framework of its role as National Coordinator of the Blue Flag Programme, the Organisation offered financial support to Local Authorities towards the execution of various works on organised beaches, as required by the Blue Flag Programme criteria. Furthermore, the Organisation undertook publicity activities, promoting the Programme in Cyprus and abroad. The Organisation presented the programme in a conference which was organized in December with the participation of representatives from neighbouring countries. The Organisation submitted its views to the Environmental Service regarding the implementation of the E.U. Directive 2006/7/EC on the quality of the bathing waters and the identification of specific areas for swimming. 21

22 IV. CRUISES Cruises are a new form of alternative vacations, and the growing global demand for them is mainly due to the luxurious, integrated product on offer which allows a cruise excursionist to enjoy carefree holidays in a ship which features all the necessary amenities. The strategic position of Cyprus in the Eastern Mediterranean contributed to the development of cruise lines to and from Cyprus, thereby assisting towards the improvement and differentiation of the tourist product. While staying in Cyprus, a tourist can also visit other wellknown destinations in the area (Israel, Egypt, Lebanon, Syria, Rhodes and the Greek Isles). The Organisation has implemented a series of promotional activities for cruise tourism. More specifically, the CTO: Upgraded and reprinted the existing promotional printed material, which promotes Cyprus as a cruise centre (both for cruises originating from Cyprus as well as others, for which Cyprus is a port of call), Upgraded its Information Office in the Lemesos Port, so as to improved the services rendered to tourists, Participated in the trade fair Seatrade Mediterranean Cruise and Ferry Convention which was organized in Venice in December, and made contacts with representatives of cruise lines. Moreover, within the framework of the European Community initiative Interreg IIIA Greece-Cyprus, a programme for the preparation of an integral plan for the development of cruise tourism between Cyprus and Crete was implemented in 2008, in partnership with the Heraklion Municipality. Two workshops were held in Heraklion, and a presentation in Lemesos in October, where the results of the programme were presented. A special brochure on Lemesos, which is addressed towards the passengers of cruise ships arriving at the port of the city, was also published. 3. CASINOS The results of the studies conducted on the economic and social impact from the development of casinos in Cyprus are being evaluated and discussed with the Ministry of Commerce, Industry and Tourism. Further preparation on matters related to the institutional and legal framework governing the development and operation of casinos has been carried out, in cooperation with external consultants. 22

23 4. CULTURAL TOURISM CULTURAL AND ARTISTIC EVENTS - ROUTES The preservation and promotion of the island s tradition and history are crucial for the achievement of the repositioning of Cyprus on the international tourist map. Since the Organisation aims at the development of enrichment and differentiation of the tourist product, it places high priority to the development of cultural tourism as exhibited by the promotion and support afforded towards the hosting of artistic, cultural and other events. Moreover, the Organisation intends that these events be held throughout the year and cover all areas of the island. In 2008 the CTO organised the following cycles of cultural events: Musical Sundays Summer Nights in Polis Chrysochous Cultural Winter, in cooperation with the Agia Napa and Paralimni municipalities. A number of other important cultural events were financially supported by CTO, such as include the Opera and the Eis Afroditin events in Pafos, the Great Ballets and the Amathusia festival in Lemesos, the Musical event in Larnaka, the Medieval Festival in Agia Napa and the Ancient Drama International Festival. The Organisation also supported a number of other cultural and artistic events organised by local authorities, non - profit organisations and festival organizers. As far as the Aphrodite Cultural Route is concerned, the Organisation prepared and published a Guide in English containing information on the Route and organized guided excursions for the public. The project of Cyprus Wine Routes, which is co-funded by the European Regional Structural Funds, was completed in The six routes which were designed were sign posted and a general guide for all the routes as well as route-specific guides was published in three languages (in Greek, English and German). The evaluation of all the local wineries and restaurants interested in participating in the project, which was based on qualitative criteria, was also completed. Additionally, informational activities were held towards the supply of information to all parties involved and promotional activities aiming at the public-at-large as well as tourism stakeholders were organized. A great number of educational trips for journalists, photographers, television crews and others were organized by the CTO, in order to boost the promotion of cultural tourism in Cyprus to the German, Austrian, Belgian, French, Arabic, American and British markets. As a result, the great cultural wealth of Cyprus received extensive publicity, mainly through articles in the press. 23

24 5. DEVELOPMENT OF THEMATIC PACKAGES The pilot implementation of the programme Cyprus Short Escapes, Great Experiences started at around the end of November This programme involves preparing packages including half-board accommodation, one lunch at a restaurant and a thematic trip (which is offered of free charge courtesy of the CTO) and making them available to the public-at-large at a predetermined price (which varies according to the category of the selected accommodation). The above programme aims at stimulating tourist demand to help combat the negative impact of the economic crisis affecting the tourist industry, to ameliorate the seasonality problem and to revitalize domestic tourism. 6. RELIGIOUS TOURISM In 2008, the Organisation published a scientifically documented Religious Guide with thematic routes in three languages (Greek, English and Russian) and organized a series of educational trips and activities towards the development and promotion of this special interest tourism product. Such promotional activities included presentations and photographic exhibitions which were held in Greece, Cyprus and the Czech Republic and were addressed at the clergy, journalists and specialized tour operators. 7. NATURE TOURISM Beyond the opening up of the European E4 Nature Trail, the existing network of nature trails was further expanded. Within the framework of the Agricultural Development Plan , the opening up of more nature trails and the construction of other forest recreation and nature tourism products was promoted. The Organisation continued to participate actively in the European Ramblers Association (ERA) and it undertook promotional activities of the European E4 Nature Trail both in Cyprus and abroad. The establishment of a Geopark in Cyprus, which will be a member of the European Geoparks Network, is being pursued. The Organisation participates in the meetings of a special committee set up to promote this project, which consists of the competent authorities involved and made its own contribution in the preparation of an Action Plan and Detailed Report for the outline and description of the Geopark. Additionally, the work for the implementation of the programme "E-market Path" (Interreg IIIA programme) that aims at promoting the section along the European E4 nature trail which traverses the islands of Crete and Cyprus has been continued and completed. Two Coordination Meetings of the programme partners were held in Rethymno and two in Cyprus, the E4 trail was sign-posted and a guide and thematic brochures (for Agrotourism, 24

25 Gastronomy, Culture and Nature) for the trail were published in three languages (Greek, English and German). In parallel, the implementation of the project Promotion of Rural Areas and Alternative Forms of Tourism, which also came under the Communal Initiative Interreg IIIA Greece Cyprus, was completed. The results of this project were presented in workshops conducted in Cyprus and in Ierapetra of Crete. 8. SPORTS TOURISM This sector is one of the biggest and fastest growing in the global tourist industry. The Organisation saw that Cyprus is an advantageous position to develop sports tourism (due to the ideal weather conditions, the short distances between the cities, the beaches and the natural environment of Cyprus and the existing sports facilities which are gradually upgraded) and hence identified this special interest product as one Cyprus should invest in. Within the framework of the efforts of the Organisation towards the development of sports tourism, the operation of the scheme for the subsidization of the development of new sports facilities servicing this market and / or upgrade of existing ones continued, with football and swimming training facilities being granted financial support. Furthermore, the Organisation maintained its successful policy of cooperation with international Tour Operators to attract mainly football teams for winter training, which was even further expanded, to include in the potential beneficiaries licensed Cypriot travel agencies and Cypriot companies which facilitate the attraction of foreign sports teams to Cyprus. The Organisation extended support to a total of 88 football teams and a significant number of teams and athletes from other sports that chose Cyprus for training. Moreover, in 2008 the Organisation provided financial support towards the hosting in Cyprus of a large number of prestigious international sports events, through its relevant incentive schemes. Such events included, among others, the World Aqua Bike 2008 Championship, the Pan-European Shooting Championship, the Commonwealth Weight Lifting Games, the cycling competition series Cyprus Sunshine Cup and international marathon competitions. The Organisation also continued its cooperation with ACTE and other partners within the framework of the research project Creation of digital applications and tools for the development of sports tourism, which is funded by IPE (Research Promotion Foundation). 25

26 In addition, the Organisation participated in the first Commonwealth Conference on Sport Tourism in Malaysia. As far as the development and promotion of special sports tourism products is concerned, special emphasis is placed on products such as cycling and golf tourism. Towards the development of promotion of the former, a series of actions has been undertaken. More specifically, within the framework of the relevant project which is co-funded at a 50% rate by the ERDF (European Regional Development Fund), promotion and information material for the Troodos cycling network (maps, a specialized guide and posters in Greek, English and German) was published, while the Organisation made a presentation of the network during an official two-day event which was held in Platres in October. The network was also promoted at a European level through articles and photos which were posted on the official website of the European Cycling Federation and presentations which were conducted abroad. Additionally, the Organisation presented the development of cycling tourism and by extension, sports tourism in Cyprus, during a special event which was hosted at the Athens University of Economics within the framework of European cooperation programmes. Also, within the framework of the programme CYRONMED of the European Communal Initiative Interreg IIIB Archimed (which mainly concerned the design of a cross-border cycling network linking areas of the Eastern Mediterranean) the Organisation prepared information material which was distributed to associations and other bodies involved with cycling. Other activities towards the promotion of Cyprus in the sector of cycling tourism concerned the continuation of the operation of the cycling team Bikin Cyprus and its participation in European competitions, and the co-operation with the German cycling competition organizers Bikemasters towards the advertising of Cyprus during competitions in Germany. The Organisation also concluded a special agreement with the Beijing Olympic Games German gold medalist Sabine Spitz for the promotion of Cyprus. Beyond the above, the Organisation participated in specialized cycling fairs in Switzerland, Germany and the Netherlands and advertised the product of Cyprus in specialized sports and cycling press and television in Germany, Ireland, the United Kingdom and the Nordic Countries. In fact, as far as the German market is concerned, for the third consecutive year a special sports events was organized, towards the promotion of Cyprus as a sports destination to a number of German sports federations. Furthermore, the Organisation supported the purchase of specialized equipment required for the hosting of international cycling competitions in Cyprus, in cooperation with the Cyprus Cycling Federation. 26

27 Intensive efforts were also exerted towards the development and marketing of golf tourism. As far as the development of golf courses is concerned, within the framework of the implementation of the Policy for the Development of Golf Courses, ten full applications for the issuance of Town Planning Permit had been submitted to the competent authorities. These applications concerned eight new complete projects and two upgrades of existing courses, in the Lemesos, Larnaka and Pafos districts. The Organisation submitted its views to the Department of Town Planning and Housing on the evaluation of applications for the development of new golf courses in the districts of Pafos and Lemesos and the upgrade of an existing one in Pafos. As far as the development of a stand-alone golf course in the Ammohostos district is concerned, the contract for the lease of forest land to the joint venture Agia Napa Forest Golf was signed between them and the Department of Forests, in accordance with the relevant Decisions of the Council of Ministers. Additionally, the Organisation offered financial support towards the hosting of a number of international golf tournaments in Cyprus, such as the Cyprus Amateur Men s Golf Open, the Cyprus Amateur Ladies Golf Open and the Cyprus Amateur Seniors Golf Open. In terms of marketing and promotion of golf, the Organisation successfully continued the implementation of its relevant Action Plan. This Plan involved the organisation of specialized events for the promotion of golf such as educational trips to Cyprus with the participation of tour operators, journalists, professional golf athletes and others. Such events received publicity in specialized golf press in Cyprus and abroad and on the internet. Additionally, the Cyprus golf product was presented to golf V.I.P. guests from Germany, during their educational trip, while it was also presented in a programme of the German television channel RTL. 9. HEALTH TOURISM (MEDICAL TOURISM AND WELLNESS AND PAMPERING) The Organisation presides over the Committee (in which both the private and the public sector are represented) which coordinates the implementation of the policy for the promotion of Cyprus as a centre for the provision of medical services, in accordance with the relevant Decision of the Council of Ministers. Within the framework of the above policy, the Organisation participated in the 27

28 team which prepared an incentive scheme for the accreditation of private hospitals and clinics, which will be launched in 2009 by the Ministry of Health. In 2008 the Organisation hosted a series of seminars / presentations which were aimed at furthering the organisation, development and promotion of health tourism in Cyprus. Additionally, the Organisation prepared a new brochure for the promotion of health tourism, which presents the medical, and wellness and pampering services offered in Cyprus and the comparative advantages of the country in this sector. The Organisation also played an important role in the Cyprus Health Services Promotion Board through its participation and support in various aspects of the operation of that Board (co-hosting of events, financial support, recruitment of new members and so on), and offered guidance to interested investors. Moreover, the Cyprus Spa Association which currently draws its membership from the spa centres, and which aims at promoting wellness and pampering tourism, was established following an initiative of the Organisation. 10. CONFERENCE AND INCENTIVE TOURISM The Organisation participates in the biggest international trade fairs on conference and incentive tourism, where it contacts the decision-makers of the sector. More specifically, the Organisation participated in February 2008 in the Confex fair in London, in March in the GIBTM fair in Abu Dhabi, in May in the IMEX fair in Frankfurt and in December in EIBTM fair in Barcelona. Additionally, the Organisation hosted familiarization trips in Cyprus for groups of journalists, travel agents and decision-makers in the field, organized specialized workshops and advertised the product both in the international press and the internet. The Organisation is also a member of the Cyprus Incentive and Meetings Association, with which it cooperates towards the promotion of Cyprus as a Conferences and Incentives destination. Furthermore, there is on-going financial and technical support being made available to the organizers of big conferences in Cyprus. Another scheme, which financially supports bidding efforts towards the hosting of international conferences in Cyprus, is also in operation. The survey for the collection of statistical data for conference tourism towards the monitoring of domestic and international trends and the evaluation of the actions of the stakeholders of the sector, continued in Regarding European programmes concerning this sector, the project Promotion of Tourism in the Cross-Border Area between Rhodes and Cyprus, which placed special emphasis on the promotion of conference 28